Travel insurance is the topic most budget travellers prefer to avoid thinking about. It feels like a waste of money when nothing goes wrong — until something goes wrong and you're looking at a $15,000 medical bill in a country where your credit card's built-in "insurance" covers exactly nothing.
What Actually Matters in a Policy
Most travel insurance comparisons focus on cancellation cover. Don't. The critical number is medical evacuation and emergency hospitalisation cover. You want a minimum of $100,000 in emergency medical cover. Medical evacuation from a remote mountain or a country without decent hospitals can cost $30,000–80,000. That's the number that will ruin your financial life if uninsured.
What You Can Skip
- Baggage cover: Airlines cover lost luggage, your home contents insurance often covers stolen items abroad. The incremental value from travel insurance baggage cover is low.
- Cancellation cover: Only relevant if you've pre-booked non-refundable things worth more than the extra premium cost.
- Gadget cover: A separate gadget policy from a specialist is almost always cheaper and better.
Recommended for Budget Travellers
SafetyWing Nomad Insurance: $45/month, covers medical emergencies including evacuation, works worldwide (excluding USA), can be bought after you've already left home. Designed explicitly for long-term travellers. The deductible is $250 per claim period — acceptable.
World Nomads: Slightly more expensive ($55–75/month depending on nationality) but covers more activities including adventure sports. Worth it if you're doing anything more than hiking — diving, mountaineering, motorbike riding.
One Real Story
A friend broke her leg hiking in the Georgian mountains. Helicopter evacuation to Tbilisi: $4,000. Hospital: $2,000. Insurance payout: everything above the $250 deductible. She paid $250. Her SafetyWing policy had cost $45/month. The six days she'd had it before the accident paid for that policy for nine years. Buy the insurance.