Essential Travel Insurance Tips For Backpackers

You’ve booked your trip, finalised your itinerary, and started the countdown to the moment you board the plane. But before you start your packing list, you’ve got one important thing to do: take out travel insurance. Good travel insurance has saved us a lot of money and stress over the years, and bad travel insurance has cost us our life savings. So believe me when I tell you I know how important it is to make the right choices!

Below is a list of my go-to travel insurance companies and some helpful do’s and don’ts when taking out a travel insurance policy. One thing to remember when taking out insurance is that these companies have entire teams dedicated to finding ways to not pay out a claim. So you need to have all your t’s crossed and i’s dotted when it comes to your policy. Luckily, I’m here to make the entire process as easy as possible.

Keep reading to ensure you have the right insurance and avoid the mistakes that everyone makes! Here are some travel insurance tips everyone should know BEFORE deciding which insurance to get.

Each insurance company offers multiple policy types, and each policy offers different levels of coverage. The abundance of policies on offer can make it overwhelming to choose both a company and a policy. Before selecting these, there are some things you need to know. This will make it clear which type of policy and extras are right for you.

TOP TIP: Check if your insurer is on TopCashback, and you can earn a % cashback for taking out your policy. If you’re not already using TopCashback, read about it in my money-saving blog post here. It’s a great way to save money on any big or small purchase.

Choose between an Annual vs Single-Trip Policy

The very first thing to decide is the length of your policy. If you go on one long-haul trip per year and a few short-haul weekend trips – you can probably take out short policies for each trip. However, if you travel long-term or regularly, you can save a lot of money and get better coverage with an annual or monthly rolling policy.

• Rolling Monthly Insurance Policy
  • If you travel for months at a time, a digital nomad policy like a Safety Wing Nomad Policy can be a great choice.  This policy covers health and possessions and is renewed every month. It’s easy to cancel and start again, adding new countries or gadgets as you move around.
• Annual Insurance Policies
  • If you travel regularly throughout the year, taking out an annual travel insurance policy might be cost-effective. This policy covers you for the entire year with one annual payment or a single monthly payment. Be careful with annual plans, as sometimes these are very light on coverage and reimbursement limits. Check the max payout amounts for healthcare/luggage and the coverage terms before signing up. The sections below will show you what to check.
• Single Trip Insurance
  • Annual or monthly policies are often not worth the money if you don’t travel regularly. Instead, you can take out a separate policy for each trip. You can do this via Axa, Safety Wing, Genki, or any reputable insurer.

Cover The Activities You Need Covered

Ensure your policy covers all the activities you’ll be doing on your trip. It sounds simple, but this is something many people don’t consider. They assume activities are covered that are not, and because of that, their claims are denied.

Standard plans do not cover activities like riding a scooter, skydiving, mountaineering, or scuba diving. Insurance companies provide an extra add-on service for these, which must be added to your policy before you go.

Look at Safety Wing’s list of adventurous sports and check your policy before signing up to ensure you’re covered for everything you will be doing on your trip. If you take out an annual trip, it might be expensive to add adventure sports for the entire year when you only do it once or twice. In that case, you can call your insurer and alter your policy by adding on this extra coverage just for the duration of the trip where you need it. Some companies take up to a week to process this, so make sure you contact them in plenty of time.

Choose Your Deductible Amount

In travel insurance, a deductible is the amount you must pay out of pocket before your insurance coverage kicks in for a claim. For example, if your policy has a €200 deductible and you incur €1,000 in covered expenses, you would pay the first €200, and your insurer would cover the remaining €800.

Some cheaper insurance policies can have high deductibles, so there would be no point in claiming back some costs. This is a clever strategy to discourage people from claiming, and it’s very common with cheap policies. More expensive policies often have low or no deductibles so that you can claim the full amount. It is essential to know the deductible amount before taking out a policy -I always opt for policies with no deductible.

Select What You Would Like Covered in Your Policy

Now, for the important part, what would you like to be insured for? Not all travel insurance policies are the same, and honestly, it’s a bit of a minefield to compare them when you don’t know what you are looking for. Here are the main areas you want covered in a standard plan:

Medical expenses

This is the primary reason people take out insurance. Medical coverage will cover anything from doctor visits for minor ailments to hospital care and medical repatriation (being flown home if you get sick abroad). You’ll need to cross-reference your medical coverage with the activities list above, to ensure medical care is covered for the activities you want to do.

Things to consider:

• If you have pre-existing medical conditions, get a policy which specifically states that it will cover them. Many insurers won’t cover pre-existing conditions, so your claim may be denied if you have an accident or emergency due to your medical condition. Insurers will make it clear on their policy if they cover pre-existing conditions.
• Check the medical coverage limits. Sometimes, they are ridiculously low, to the point that they wouldn’t cover your entire bill if you did need a hospital stay. This will usually be tucked away in the finer print or small text on the policy page. Here are some guidelines:
  •  Basic Coverage: $50,000 – Suitable for travellers visiting countries with strong healthcare systems.
  • Comprehensive Coverage: $100,000 – Ideal for frequent travellers or those visiting remote destinations.
  • High-Risk Coverage: $250,000+ – Recommended for adventure travellers or those visiting countries with expensive medical care.
• I would always get a policy with Repatriation Cover & Emergency Medical Evacuation. How many Gofundmes have you seen for someone fundraising for the costs of flying home for treatment? It doesn’t cost much more to include, and it’s worth it. Aim for at least $100,000 in coverage, especially if travelling to remote areas.
• Ensure the medical coverage is not just for local government hospitals. If you are in a country with poor national healthcare, you will need to go to a private hospital for your treatment. Make sure the policy covers private hospitals and clinics—not just government ones. The more budget policies usually reject private cover (this is how we got caught out).

Trip Cancellation

This type of insurance reimburses 100% of the insured trip costs you have lost due to cancelling your trip. It usually starts from the moment you buy the policy until you leave for the trip. It does not cover cancellation during the holiday – this would be ‘Trip Interruption’, which is usually covered under general travel insurance policies. You should take out trip cancellation insurance as soon as you pay for a non-refundable cost (flight/tour/hotel).

I always recommend including Trip Cancellation in your policy, but I would insist on it in two situations:

• If you have life situations that mean your risk of cancelling is higher, for example, you may fall pregnant, a family member is sick and may need help, or the country you are visiting is politically unstable or prone to natural disasters.
• You splurged and spent a lot on a memorable trip, so you stand to lose a lot of money if you need to cancel.

The most common reason I see people lose money is that they wait to take out insurance right before leaving. This means they don’t get their money back if the trip is cancelled for any reason. Most long-haul expensive trips are booked 6+ months in advance – and anything can happen between booking and departing!

Cancel For Any Reason (CFAR) insurance is the gold star in trip cancellation insurance. As the name suggests, your costs will be covered without any conditions on the reason for cancelling. I would recommend looking for this when searching for policies with trip cancellation.

Tip: When you book flights, you can usually add cancellation insurance at the time of booking – it’s generally on the checkout page. Many hotel booking websites offer insurance too,  and sometimes, but less commonly, it’s possible for tours. Trip cancellation is included in many policies, but not all, so this is something to look for. Check the cancellation coverage amount and conditions before you purchase the policy.

Missed departure or delays 

Get this if you want to be reimbursed if your flights are cancelled or delayed to the point that your trip is impacted and costs are incurred. I don’t think this is as necessary as Trip Cancellation, but here are the situations where I would add this coverage:

•  If you have a multi-leg flight with a short transit window between flights. Especially if the flights are operated by two different airlines or have been booked via an agency and not directly from the airline website. You will be covered if you miss the second flight due to the first flight being delayed.
• If you have booked with an unreliable budget airline.
• You are not a punctual person and have a tendency to miss flights (Hey, it happens to the best of us!)

With this type of coverage, you will be reimbursed for costs incurred due to missing your flight or transport because of your own mistake or the airline changing things.

Lost, Stolen, Damaged Luggage or Personal Possessions 

Personal Belongings & Baggage Loss coverage in travel insurance protects you financially if your luggage or valuables are lost, stolen, or damaged during your trip. This usually covers:

• Lost or Stolen Items: Reimbursement for missing luggage, clothing, electronics, and personal effects
• Damaged Belongings: Compensation for items damaged during transit.
• Baggage Delay: Some policies cover essential purchases (clothing, toiletries) if your bags are delayed for a certain period.

Standard baggage insurance often does not cover high-value items, and your policy will have a maximum payout amount. When taking out this type of insurance, ensure the coverage amount is adequate for your belongings. If you like designer gear or expensive clothes, make sure your policy will actually cover the entire cost of your belongings being stolen or lost.

Also, look at your policy conditions for claiming lost or stolen luggage. If you need to provide receipts or proof of ownership, taking photos of your belongings may be a good idea before checking the bag in. Some also require police reports if belongings are stolen, so make sure you know if you need this. You don’t want to find out once you’ve returned home and it’s too late.

High-Value Items / Gadget cover 

Expensive items, gadgets, and tech are often not covered by general luggage/possession cover policies. The items and max costs covered for baggage will be clearly stated on the policy details before you sign up, so make sure to check this.

Add Gadget Insurance or ‘High-Value Item Coverage’ to your policy if you bring your camera, laptop or any expensive belongings. Ensure you have receipts or take photos of the belongings before you fly to ensure that you have proof of ownership.

You will often have to get a police report to submit with your claim for reimbursement. Read your policy carefully before you fly to ensure you do everything required before you make a claim. 

Vetting An Insurer

Now that you have considered the above, you may have a few options for insurers. Here is how to vet each one to make sure it meets your needs.

The quality and availability of 24/7 emergency assistance offered by insurance companies vary widely, and it is an important factor to consider when taking out a policy.

When we had our crash, I was insured by Safety Wing, and Tim had taken out cheap insurance with a company called TIF Group. That was when I realised how vital good emergency support is! Safety Wing had an emergency line I could call, provided excellent support, and made me feel cared for in a crisis. TIF Group left me on hold for hours when I could get through, but I mostly sent emails. They had me in tears at points trying to speak to people, and made the situation more stressful.

If you’re lucky, you’ll never need to contact your insurer’s emergency support team—but if you do, the last thing you want is a company giving you the runaround when you’re in a hospital in a foreign country.

The insurer’s website will detail their emergency support process. Avoid email and live chat and look for 24/7 dedicated support. Then, look on TrustPilot, social media, and Google to see others’ experiences with the support team. If an insurer has an overwhelming number of negative reviews of its support, steer clear. One quick Google would have saved us so much money, as TIF Group had already been involved in many insurance scandals. Don’t be put off by a couple of bad reviews, sometimes people get mad when their claims are denied even when it’s their fault. Every insurer out there will have some irate customers, but look at the overall trust pilot score and what points come up again and again.

Also, read the insurer’s process for filing your claim, including how to file a claim, required documentation, and average processing times. Some insurance companies have such a convoluted claims process that getting your costs back can be next to impossible. A straightforward claims process can save you a lot of stress in case of an incident. This will be detailed on the insurer’s website.

PRO TIP: When someone recommends an insurance provider, ask them if they have claimed and how they found the process. If they have not claimed yet, do not take the recommendation until you have researched emergency support and the claims process. Many cheap insurers make the sign-up process easy, giving people false confidence in the company. The support and claims process are more important to focus on. 

Common Insurance Mistakes

• Underinsuring Your Trip: All policies have max payout amounts for every area of coverage. Your belongings, medical costs, and travel cancellation costs are all limited to a specific amount. Make sure these limits exceed the value of your belongings and costs, or you won’t be covered if you need to claim.
• Not Reading the Fine Print: Many policies have strict claim requirements, like needing official documentation for lost items or delays. Some policies don’t cover cancellations due to work obligations or visa issues. Make sure you know the conditions of your coverage to uncover any red flags before you sign up.
• Taking Out Travel Insurance Too Late: Take out your travel insurance when you book the trip, not just before you go! This way, you are covered if your trip is cancelled or delayed or if, for some reason, you can’t go. Take it out right after you book your flights.
• Not Checking Your Trip Length: Insurers often have a limit on the duration of a trip – usually 30 days for standard insurers. For trips over 31 days, you won’t get a notification, but you won’t be able to claim. For those trips, you need long-stay insurance. Many annual insurers won’t cover long trips like these and are designed for shorter trips. However, Safety Wing has a rolling monthly policy that you can cancel anytime.
• Not getting your activities covered: Make sure that every activity you will be doing on the trip is covered, or purchase add-ons to your policy if not.

My Favourite Insurance Companies

I currently insure with three companies during my travels. While this post covers the different types of travel insurance, I specifically look for digital nomad cover for my personal policies. The insurance companies below specialise in this, but some also offer holiday insurance.

Safety Wing

Safety Wing’s 30-day rolling Nomad Insurance policy has been my go-to insurance policy for the past few years.  I pay $56 per month for health insurance, which provides comprehensive coverage. This insurance is great for digital nomads or full-time travellers who move around frequently and want a policy they can start and stop whenever needed. I don’t have any adventure activities in the policy; I am on their standard plan with additional gadget insurance.

Genki

Genki offers medical-only digital nomad insurance. They’re quite easy to sign up with and claim with, and are very transparent about what they do and don’t cover. The downside to my rolling policy with Safety Wing is that if I suddenly book an unexpected trip to a country outside my policy, I can’t add it easily. When this happens (for example, when I went on my tours to Africa), I take out a policy with Genki.

Genki has an annual policy, which is more expensive than Safety Wing at €180 per month. However, this policy provides a lot of coverage. This includes dental and vision coverage, pregnancy coverage, and coverage in your home country, which many policies don’t include. You can read the details here. In addition to their annual full coverage policies, they offer a medical insurance-only package for €63 per month. Details are here.

True Traveller

This company specialises in adventure travel coverage and has become my go-to when I want personal insurance for my group tours. I found them while searching for insurance for my Nepal tour, and they had the best policy.

True Traveller offers single-trip, multi-trip and annual coverage for travellers who like to hike, do sports and adventure activities and do more fun and daring things when they travel. They cover 92 standard activities and 41 adventure activities – including hiking up to 4,600m. They get a great Trust Pilot score, which is always a green flag with any insurer.

World Nomads

Another backpacker insurance option that I have used many times is World Nomads. They [provide travel insurance focusing on digital nomads & long-term travellers. They’re a good bet if you’re off on a backpacking adventure. They have solid support and a straightforward claims process.

Travel Supermarket

The travel insurance companies above are geared towards backpackers, adventure travellers, and long-term travellers. If you are looking for insurance for a short holiday or multiple trips throughout the year, then the best place to go is Money Supermarket.

Here, you can enter your search criteria based on everything you have read in this post and compare policies from different insurers.

• Click the blue ‘get a new quote’ button at the top of the page.
• Enter your trip & personal information, then click ‘Continue’.
• Enter any preexisting medical conditions to ensure these are covered
• Now, Money Supermarket will give you a list of insurers to compare.
• I’d suggest filtering the results using the filter tool at the top of the page to refine them further. Here, you can add extras like gadget cover, passport loss, etc. You can specify a maximum excess (remember, the smaller the better), trip cancellation cover amount, baggage cover amount, and medical cover amount. The details above will help you determine these amounts.
• You should have a much smaller list of potential insurers whose policies you can compare. Pop your preferred companies into Trust Pilot to compare their customer feedback.

This is a really helpful tool, as it allows you to compare different insurers in the market at a glance instead of trawling through each insurer’s website!

Understanding your travel insurance options can make all the difference when you’re on the road. By keeping these travel insurance tips in mind, you can protect yourself against unexpected events and enjoy peace of mind during your travels. Check out my post on Safety Tips while travelling to make sure you are totally prepared!

Remember, the right travel insurance not only safeguards your finances but also allows you to travel with confidence. Of course, the biggest travel insurance tip I have always had is to have insurance.  I would never recommend travelling without it – you can never know what might happen!

   Safe travels,
Steph x