7 Common Travel Insurance Mistakes (and How to Avoid Them)
Travel insurance isn’t the most exciting part of trip planning. Most of us would rather spend time picking hotels, booking tours, or dreaming about the food we’re going to eat. But here’s the truth: when things go wrong abroad, insurance is the one thing that can save you from stress, massive bills, and even being stranded.
The problem? Not all travel insurance is created equal. And if you make the wrong choice, you may find yourself paying thousands out of pocket.
After 15 years of traveling, I’ve learned this the hard way. From stolen wallets to interrupted trips, I’ve been burned more than once — but I’ve also had insurance step in and save me.
To help you avoid the same headaches, here are the 7 most common travel insurance mistakes — and how you can avoid them.
You can have your tickets, your passport, and your plans… but without the right insurance, your trip isn’t really covered.
1. Thinking Medical Insurance = Travel Insurance
A lot of travelers think their medical coverage is enough. The problem is, medical insurance only covers hospital visits or doctor care. It doesn’t include the things that actually disrupt most trips, like:
Cancelled or delayed flights
Lost or stolen luggage
Needing to stay longer abroad
A travel companion’s emergency
💡 Real story: On a trip to the Dominican Republic for a friend’s wedding, 87 out of 89 people in our group got sick. My mom was one of two who ended up in the hospital. Her medical bills were covered, but when the doctor recommended she stay another night, we realized she didn’t have travel insurance. That meant she’d have to pay for hotel costs and flight changes out of pocket — so she checked out early against the doctor’s advice.
✅ Avoid this mistake: Always make sure you have both medical and travel insurance, even if you think you’re healthy.
Feeling carefree in the Caribbean… until half the wedding guests got sick. That’s when we learned not all insurance covers every part of your trip.
2. Not Reading the Fine Print
Insurance companies love to bury exclusions in the fine print. And those little details matter. Many basic policies don’t cover activities like scuba diving, hiking, or even renting a scooter. Electronics are often excluded too.
💡 Real story: As a scuba diver, I always double-check if diving is included. Many cheap policies won’t cover it at all. And if something happens underwater, you’re on your own.
✅ Avoid this mistake: Read the exclusions list carefully. If you’re doing adventure activities, or traveling with expensive gear, make sure they’re specifically listed as covered.
From diving to hiking volcanoes — make sure your insurance covers the way you travel.
3. Buying Based Only on Price
It’s tempting to pick the cheapest plan. But cheap travel insurance often means low coverage limits or so many exclusions that it’s basically useless. That “deal” could cost you thousands in the long run.
💡 Real story: My World Nomads Travel Insurance plan cost about $1,500 CAD for a year. Pricey? Yes. But it included $5 million in medical coverage and adventure activities. When a wave in Panama stole my phone, they reimbursed me $750 after I filed a claim. Without that coverage, I’d have been out of luck.
✅ Avoid this mistake: Don’t just look at the price tag. Compare coverage limits, deductibles, and what’s actually included.
It looked like paradise… until the ocean swallowed my phone. That’s when I learned to always check what’s covered.
4. Assuming Your Credit Card Covers Everything
Lots of credit cards offer “free” travel insurance. Sounds great, right? The catch is, the coverage is often limited or inconsistent. One year it might cover trip interruption, the next year it might not.
💡 Real story: My Mastercard once gave me excellent coverage for $79/year. Over time, the fee dropped to $34 — but so did the benefits. It’s now basically useless.
✅ Avoid this mistake: Always read your credit card’s current benefits before relying on it. Call the company if you’re unsure, because policies can change without much notice.
I’ve carried a lot of things while traveling — but assuming my credit card’s insurance had me covered was one mistake I left behind.
5. Not Keeping Proof for Claims
Even if your insurance covers something, you won’t see a dime without proof. That means receipts, police reports, medical notes, and sometimes even witness statements.
💡 Real story: When my phone was stolen by the ocean in Panama, I had to provide both a witness statement from hotel staff and a police report. Later, when my trip was interrupted in Shanghai and NYC after my grandma passed away, I had to screenshot every email to hotels and Booking.com showing that I tried to change my dates. Without that documentation, I wouldn’t have been reimbursed.
✅ Avoid this mistake: Keep a digital folder of receipts, confirmations, and reports. Take photos or screenshots of everything.
Every claim needs proof — screenshots, receipts, and reports can make or break your refund.
6. Forgetting Country Requirements
Some countries won’t let you in without travel insurance. It’s not optional — it’s a requirement at immigration.
💡 Real story: Before visiting Egypt, I had to buy insurance at the UK Post Office. It cost £50 for 10 days and only took about 10 minutes, but without it, I couldn’t have boarded my flight.
✅ Avoid this mistake: Always check your destination’s entry requirements. Countries like Egypt, Cuba, and Costa Rica may require proof of insurance before you’re allowed in.
When I visited Egypt, travel insurance was mandatory to enter. It isn’t anymore — but I still wouldn’t go without it.
7. Waiting Until It’s Too Late
One of the biggest mistakes travelers make is waiting until after something happens to buy insurance. At that point, it’s too late. Travel insurance only covers unexpected events that happen after you purchase it.
💡 Real story: When my grandma passed away while I was abroad, I was only covered for trip interruption because I’d already purchased the policy in advance. If I’d waited, I would’ve been stuck paying thousands in last-minute flight and hotel costs.
✅ Avoid this mistake: Buy your travel insurance as soon as you book your trip. That way, you’re covered for cancellations or emergencies before you even leave home.
Travel days are stressful enough — don’t add ‘no insurance’ to the list. Buy it before you leave home.
Final Thoughts
Travel insurance isn’t glamorous, but it’s the safety net that keeps your trip from turning into a financial disaster. By avoiding these 7 mistakes, you’ll save yourself stress, money, and heartache.
👉 Rule of thumb: It’s better to have insurance and not need it than to need it and not have it.
A final reminder before takeoff: travel insurance isn’t an expense, it’s your safety net.
The Quick Checklist
✔ Covers medical + travel
✔ Adventure activities included
✔ Electronics covered
✔ High coverage limits
✔ Country requirements met
✔ Proof saved (receipts, reports)
✔ Bought before you leave
Prefer paper over screens? I’ve turned this checklist into a printable — available on my website (and Etsy too, if that’s your go-to).
