Travel insurance is one of those things you hope you’ll never need—but can be a lifesaver if things go wrong. While many travelers purchase it for peace of mind, not everyone reads the fine print. And the result? A lot of frustration when they try to make a claim and realize they’re not covered the way they thought.
In this blog post, we’ll break down 10 common assumptions travelers make about travel insurance—and what’s actually true. If you’ve ever booked through third-party travel sites, or simply relied on default insurance options, this guide is a must-read.
1. “If I cancel my trip for any reason, I’m covered.”
This is the most common misconception. Most basic travel insurance policies only cover cancellation for specific, listed reasons—such as illness, injury, or the death of an immediate family member.
Want total flexibility to cancel for any reason? You’ll need to purchase CFAR (Cancel For Any Reason) coverage, which:
Costs more
Must be purchased soon after your initial booking
Often only reimburses 50–75% of non-refundable costs
Booking with third-party travel sites? Be especially careful, as cancellation rules may be stricter or tied to the site’s policy rather than the airline’s.
2. “Medical expenses abroad are always covered.”
Not necessarily. While many policies include emergency medical coverage, they often:
Exclude pre-existing conditions
Require upfront payment (you get reimbursed later)
Have lower limits than expected
Also, if you’re traveling for medical treatment or surgery, your plan won’t cover complications or travel delays caused by those procedures.
3. “Lost luggage? I’ll be fully reimbursed.”
Most travel insurance will compensate for lost or delayed baggage—but only up to a limit. These limits can be surprisingly low (e.g., £250–£500 per item), and expensive items like laptops, jewelry, and designer clothing may not be covered unless you purchase extra protection or already have personal possessions insurance through your home policy.
Keep your valuables in your carry-on, and always keep receipts for expensive items.
4. “Natural disasters and strikes are always covered.”
Not all disasters are treated equally in the world of insurance. If a volcanic eruption, earthquake, or airline strike delays your flight, you may not be covered unless:
The event was unforeseen
You booked your insurance before the event occurred
It caused a delay or cancellation longer than the minimum listed in your policy (often 6–12 hours)
For example, buying a policy after a storm is named or a strike is announced likely voids any related claims.
5. “I’ll be covered if the airline or hotel goes bust.”
Unfortunately, travel insurance rarely covers supplier failure—like if your airline, hotel, or cruise company goes out of business. For that, you’ll need:
ATOL protection (for UK package holidays)
Credit card protection (Section 75 for UK consumers)
Optional “end supplier failure” add-ons
If you're using third-party platforms, check their refund or voucher policies, as many don’t guarantee reimbursement for insolvency.
6. “Adventure sports and extreme activities are included.”
Most standard policies exclude dangerous activities such as:
Scuba diving
Skydiving
Bungee jumping
Off-piste skiing
Motorbiking without a full license
If you plan to be adventurous, you’ll need to upgrade your policy or choose one tailored for high-risk travel.
7. “COVID-19 is always covered.”
Not anymore. While most insurers have updated their policies to include some level of COVID-19 coverage, this often applies only to:
Cancellation due to positive test before departure
Medical treatment if you catch COVID-19 abroad
Few policies cover government-imposed quarantine costs or border closures. Always read the COVID-19 clause in your policy—and don’t assume it matches your expectations.
8. “I’m covered the moment I buy insurance.”
Actually, some benefits begin immediately (like trip cancellation), but others—like baggage or medical coverage—may not apply until your trip begins.
Also, buying insurance last-minute can void some important protections. It's best to purchase it:
Within 24–72 hours of booking your trip
Before any issues arise
With a clear understanding of waiting periods
9. “My travel credit card provides full coverage.”
Many premium travel cards include insurance perks, but these usually require:
Using the card to pay for the trip
Registering for coverage in advance
Understanding limits, which may be lower than a full standalone policy
Also, credit card insurance may not cover trip interruption, sports injuries, or long medical stays.
Read the fine print—or better yet, consider a dedicated insurance policy if your trip is expensive or international.
10. “If I’m scammed abroad, my insurance will protect me.”
Sadly, most insurance policies don’t cover fraud, theft by deception, or falling for tourist scams. If you lose money to:
Fake tour operators
Online hotel booking frauds
Local scammers
…you’ll likely be on your own. Prevention is key. Book only through verified channels, and avoid cash payments where possible.
Final Thoughts
Travel insurance is a critical safety net, but only if you understand what it truly covers—and what it doesn’t. In 2025, as global travel becomes more unpredictable and automated systems dominate the booking process, travelers must be proactive.
If you're using third-party travel sites, remember that cancellation terms, change flexibility, and refund processes may not be the same as booking direct. For a detailed look at how these platforms work—and whether they’re actually saving you money—check out this full guide on the pros and cons of third-party travel sites.
FAQs
Q: Is travel insurance mandatory for international trips?
A: Not always, but it's highly recommended—some countries do require proof of coverage for entry.
Q: Can I cancel a policy after buying it?
A: Many insurers offer a 14-day “cooling-off” period for refunds, provided you haven’t made a claim or started the trip.
Q: Will insurance cover delays caused by missed connections?
A: Often yes, but only if it meets the time delay minimum and the cause is covered (like a mechanical issue, not your lateness).
Q: Can I buy insurance after I’ve started my trip?
A: It’s possible with some providers, but limited. It’s always better to buy before departure.
