Best for long trips and digital nomads: SafetyWing — flexible monthly cover at a low price. Best for adventure activities: World Nomads — broad cover for sports and gear. Best for trip cancellation and short holidays: Allianz Travel Insurance. At minimum, make sure you have emergency medical cover and evacuation, since hospital bills abroad can be enormous.
Travel insurance is the item budget travellers most want to skip and most regret skipping. A cheap flight and a hostel bed don’t help if you break a leg in another country and face a hospital bill worth more than your whole trip.
The good news is that decent cover doesn’t need to be expensive, provided you buy the right type. Here’s what to look for, the providers worth comparing, and how to avoid paying for cover you don’t need. Policies differ by country, age, and trip, so always read the terms before you buy.
What Travel Insurance Should Cover
- Emergency medical treatment. This is the essential part; look for a high limit, especially for the US and Canada.
- Medical evacuation and repatriation. Being flown home from a remote place can cost tens of thousands.
- Trip cancellation and interruption. Covers non-refundable costs if you have to cancel or cut short a trip for a covered reason.
- Baggage and gadgets. Useful if you carry a phone or laptop, but check per-item limits.
- Adventure activities. Many standard policies exclude activities like scuba diving or skiing unless you add cover.
Best Travel Insurance Options
1. SafetyWing — Best for Long Trips
SafetyWing offers a subscription-style plan designed for long-term travellers and digital nomads, with cover renewed in short periods rather than a fixed trip. It’s aimed at medical and evacuation protection at a lower price than many traditional policies.
Cover levels, exclusions, and eligibility depend on your age, nationality, and destination, and it isn’t a full replacement for detailed trip-cancellation cover. Read the policy summary carefully.
2. World Nomads — Best for Adventure Activities
World Nomads is built for independent and adventurous travellers, with cover for a wide range of activities and gear. It’s a popular option for backpackers and people trying activities like trekking or diving.
It typically costs more than budget-focused plans, but the extra cost can be worthwhile if your itinerary includes higher-risk activities. Always check what’s excluded.
3. Allianz Travel Insurance — Best for Trip Cancellation
Allianz offers traditional single-trip and annual plans with strong trip cancellation and interruption cover, which suits shorter holidays with expensive non-refundable bookings. Plans are available at several cover levels.
It can be pricier than nomad-focused plans for long trips, but it’s a good match for a two-week holiday where the cost of the trip itself is the main risk.
4. Your Credit Card — A Free Starting Point
Some travel credit cards include trip delay, baggage, and rental car cover when you book with the card. Depending on your card, this can complement or partly replace a paid policy for short trips.
Card benefits often exclude emergency medical cover abroad or have strict conditions, so check your policy documents before relying on them.
How Much Cover Do You Need?
| Trip type | What to prioritise |
|---|---|
| Short holiday, expensive bookings | Trip cancellation and interruption |
| Long backpacking trip | Medical, evacuation, and gadgets |
| Adventure travel | Activity cover and evacuation |
| Frequent short trips | An annual multi-trip policy |
A common rule of thumb is that trip insurance costs roughly 4–10% of your trip’s cost, but medical-only plans for budget travel can be much cheaper. Buy soon after booking your trip, since some benefits for cancellation and pre-existing conditions depend on when you buy.
Common Travel Insurance Mistakes
- Buying only the cheapest policy. Low medical limits can leave you exposed in countries with expensive healthcare.
- Skipping activity cover. A single “risky” activity can void a claim if it isn’t included.
- Ignoring the claims process. Keep receipts, medical reports, and police reports for anything you might claim for.
- Assuming a credit card covers everything. Card benefits are usually limited and conditional.
- Not telling the insurer about existing conditions. Failing to disclose can make a claim invalid.
Frequently Asked Questions
Is travel insurance worth it for budget travel?
Yes, particularly for medical and evacuation cover. A single accident abroad can cost far more than the whole trip, and cover for that risk is usually inexpensive compared with your total trip budget.
Does travel insurance cover pre-existing conditions?
Some policies cover them if you buy within a set period after booking your trip and meet certain conditions; many exclude them. Read the policy wording and declare any conditions when applying.
When should I buy travel insurance?
Soon after you book your first non-refundable payment. Buying early gives you cancellation cover from the start and can help with eligibility for some benefits.
What isn’t covered by travel insurance?
Common exclusions include cancelling for a change of mind, high-risk activities without an add-on, alcohol-related incidents, and travel against government advice. Always check the exclusions list.
Final Thoughts: Choose insurance based on how you travel: SafetyWing for long trips, World Nomads for adventures, and Allianz for shorter, pricier holidays. Whatever you pick, make sure medical and evacuation cover are in place before you leave.
Policies, prices, and eligibility vary by country, age, and destination — always read the full policy wording. This article is general information, not insurance advice.
