Before you fly: Common mistakes travellers make when buying travel insurance

Some premium credit cards offer travel insurance as an added perk. But this coverage often comes with limitations.

Many people tend to treat travel insurance as just another visa formality rather than a crucial safety net. Whether you're a seasoned traveller or planning your first international trip, travel insurance is not just a checkbox to tick; it’s your first line of defence when things go wrong far from home.

Let’s walk through some of the most common mistakes travellers make when buying travel insurance — and how you can avoid them.

Buying it just because it’s "mandatory"

Many travellers buy insurance only because certain countries require it for visa processing. Unfortunately, that often leads to purchasing the cheapest available policy without understanding what's covered. A bare minimum plan may not help when faced with a medical emergency, trip cancellation, or loss of belongings.

Tip: Don't just buy insurance to "tick a box". Buy it to protect yourself.

Believing "nothing will go wrong"

Travellers often assume their trips will go smoothly. Ultimately, it is merely a short holiday — what could potentially go wrong?

Here's a true story: A young couple on a honeymoon in Europe had their luggage — including essential medicines and valuables — stolen on the second day of their trip. They didn't have baggage loss or emergency assistance cover because they chose the lowest premium policy just to get their visas. They ended up spending thousands of euros out-of-pocket and cutting the trip short.

Lesson: It's wise to stay prepared, even when everything seems certain.

Also read | Is travel insurance necessary for short trips?

Hiding or ignoring pre-existing medical conditions

Many travellers skip disclosing pre-existing conditions, assuming it'll either increase premiums or lead to denial of coverage. What they don't realise is that omitting medical history can void the claim altogether.

Tip: Always declare your medical history truthfully. Some insurers offer tailored policies for pre-existing conditions at a slightly higher premium — but it’s worth the peace of mind.

Not knowing what’s actually covered

Most people don’t read the fine print. Terms like "trip interruption", "deductibles", "exclusions", and "emergency evacuation" sound overwhelming — but these can make all the difference during a claim.

Tip: Spend 15 minutes reading your policy's coverage and exclusions. Seek expert guidance from your insurer or advisor for any clarification required.

Also read | Investing in the American Dream: Why global millionaires are betting on the US Golden Visa

Choosing insufficient cover

One of the biggest mistakes is going for minimal cover just to save a few hundred rupees. But medical care abroad, especially in the US, Canada, or parts of Europe, can be staggeringly expensive.

Tip: Opt for adequate coverage — especially for medical emergencies, hospitalisation, and personal liability. Your savings today shouldn’t become a financial burden tomorrow.

Relying solely on credit card insurance

Some premium credit cards offer travel insurance as an added perk. But this coverage often comes with limitations — restricted sum insured, limited trip durations, and specific activation requirements (like booking the trip using that card).

Tip: Checking the details of your credit card insurance is paramount. For full protection, consider a standalone comprehensive travel policy.

Also read | How Indian overseas-bound travellers are managing rising summer vacation costs, forex outgo

Final thoughts

Travel is about joy, discovery, and making memories — not dealing with stress in an unfamiliar country due to unexpected mishaps. Travel insurance might seem like a small detail in the grand scheme of planning, but it can make a world of difference when the unexpected happens.

So, before you pack your bags, do yourself a favour: spend time understanding and buying the right travel insurance. Because protection isn’t just about ticking a box — it’s about travelling with peace of mind.

The writer is Head of Insurance Advisory, 1 Finance.

Disclaimer: The views expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any decisions.