Travel insurance is one of those expenses that feels like a waste of money right up until the moment you need it. A broken ankle on a hiking trail in the Alps, a stolen laptop in Barcelona, or a canceled flight that strands you overnight can turn an expensive inconvenience into a financial catastrophe without coverage. But not all travel insurance is created equal, and understanding what you actually need prevents both overpaying for unnecessary coverage and discovering gaps when it matters most.

EHIC and GHIC Cards: Free Healthcare Access

If you hold citizenship in an EU or EEA country, your European Health Insurance Card (EHIC) entitles you to state-provided medical treatment in other EU/EEA countries on the same terms as local residents. This means reduced-cost or free emergency treatment. UK citizens now use the Global Health Insurance Card (GHIC), which provides similar coverage in EU countries post-Brexit. These cards are free to obtain and should be in every European traveler’s wallet.

However, EHIC and GHIC are not travel insurance. They do not cover medical repatriation (a flight home on a stretcher can cost €20,000+), trip cancellation, lost luggage, or private hospital treatment. They are a valuable supplement to proper travel insurance, not a replacement.

Trip Cancellation vs Medical Coverage

Travel insurance policies broadly cover two categories. Trip cancellation/interruption reimburses prepaid, non-refundable costs if you need to cancel or cut short your trip due to covered reasons (illness, injury, death of a family member, certain natural disasters). Medical coverage pays for emergency medical treatment, hospital stays, and medical evacuation abroad. Most comprehensive policies include both, but the coverage limits and exclusions vary enormously.

For American travelers to Europe, medical coverage is arguably more important since the US has no reciprocal healthcare agreements with European countries, and a hospital stay abroad can generate bills in the tens of thousands. Ensure your policy provides at least $100,000 in medical coverage and includes emergency medical evacuation.

Common Exclusions to Watch For

• Adventure sports: Standard policies often exclude injuries from skiing, scuba diving, rock climbing, and even cycling in some cases. If your trip includes active pursuits, verify coverage or purchase an adventure sports add-on. Winter sports exclusions are particularly common and relevant for Alps trips.
• Pre-existing conditions: Most policies exclude treatment related to medical conditions you had before purchasing the policy. Some providers offer pre-existing condition waivers if you buy the policy within 14-21 days of your first trip payment. If you have ongoing medical conditions, this window matters.
• Electronics and valuables: Coverage for phones, laptops, cameras, and jewelry is typically capped at $300-500 per item, well below replacement cost for premium devices. Some policies exclude electronics entirely. Read the fine print on valuable items coverage and consider whether your homeowner’s or renter’s insurance provides better coverage for electronics abroad.
• Alcohol-related incidents: Injuries sustained while intoxicated are excluded by virtually every travel insurance policy. This is worth remembering on European wine tours.

Recommended Providers

For US-based travelers, World Nomads offers flexible policies popular with active travelers that can be purchased and extended while already abroad. Allianz Travel Insurance is a well-established provider with straightforward claims processing. IMG (International Medical Group) specializes in medical coverage and is strong for longer trips. SafetyWing offers a subscription-based model popular with remote workers and long-term travelers at about $45 per 4-week period. Compare policies on aggregator sites like SquareMouth or InsureMyTrip, which let you filter by coverage needs and compare prices side by side.

Filing Claims: What to Know in Advance

The most common reason claims are denied is lack of documentation. For medical claims, keep all hospital paperwork, receipts, and prescriptions. For theft, file a police report within 24 hours and keep the report number. For trip cancellation, obtain written documentation of the reason (doctor’s note, airline cancellation confirmation). Take photos of damaged luggage before disposing of it. Most insurers require claims to be filed within 90 days of the incident and will request original receipts for any items claimed as lost or stolen.

A comprehensive travel insurance policy for a two-week European trip typically costs $50-150 depending on your age, coverage level, and trip cost. Against the potential cost of a medical emergency or trip cancellation, this is one of the most sensible investments you can make before departure. Just make sure you read the policy document, not just the marketing summary, before you buy.