7 Common Travel Insurance Mistakes Indians Make Before Flying Out

For many Indians, planning an international trip means meticulously booking flights, securing visas, and packing the perfect clothes but often, travel insurance is treated as a rushed, last-minute formality. This oversight can turn a dream vacation into a financial disaster, especially given the skyrocketing costs of international healthcare. Travel insurance is far more than just a visa requirement, it's the financial backbone of your trip. Before you secure that boarding pass, take a moment to review your policy. Avoiding these common mistakes can save you thousands and ensure you fly out with true peace of mind.

Also Read: Travel Insurance Guide: What It Covers And What It Doesn't For Your Trips

Here Are 7 Common Travel Insurance Mistakes Indians Make:

1. Buying Coverage Based On Price Alone

The biggest mistake is defaulting to the cheapest policy available. Budget plans often have low coverage limits that are inadequate for medical emergencies in high-cost countries like the US, Canada, or Europe, where a single night in a hospital can cost over $10,000 (Rs 8 Lakhs). Focus on plans that offer comprehensive medical coverage, ideally $250,000 (Rs 2 Crore) or more.

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2. Underestimating Medical Evacuation Costs

Many travellers forget to check the medical evacuation clause. If you have a severe accident in a remote area, the cost of an air ambulance to a major city or back to India can easily exceed $100,000 (Rs 80 Lakhs). A low-cost policy might cap this essential coverage, leaving you personally responsible for the huge balance. Always look for a high-limit or unlimited emergency medical evacuation benefit.

3. Hiding Pre-Existing Conditions

Travellers often fail to disclose pre-existing medical conditions (like diabetes, hypertension, or heart disease) to keep premiums low. If a non-disclosed pre-existing condition leads to a hospitalisation or claim abroad, the insurance company will investigate and deny the entire claim, invalidating your policy when you need it most.

4. Ignoring The Fine Print On Baggage

While most policies cover lost luggage, many Indians overlook two critical limitations:

• Per-Item Limits: The policy might offer a total of $1,000 (Rs 83,000) for lost luggage, but limit coverage to only $50 (Rs 4,150) or $100 (Rs 8,300) per single item. This won't cover your new camera or expensive handbag.
• Valuable Items: High-value items like jewellery, laptops, and professional camera gear often require a separate rider or specialised insurance.

5. Not Checking Adventure/Sports Exclusions

If your trip involves skiing, bungee jumping, scuba diving, or hiking to high altitudes, do not assume your standard policy covers related injuries. Many policies specifically exclude injuries resulting from "hazardous activities" or "adventure sports." If you plan an adrenaline-fueled trip, you must purchase an add-on or specialised adventure sports package.

6. Misunderstanding Trip Cancellation Reasons

Trip cancellation coverage only pays out if you cancel for a covered reason (like sudden illness, death in the family, or a specified natural disaster). Common reasons for cancellation, such as fear of travel due to political unrest, work commitments, or visa denial are often not covered. Read the policy to ensure the potential risks you foresee are explicitly included.

Also Read: 9 Essential Tips To Pick The Best Travel Insurance For Your Next Trip

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7. Buying Too Late Or Too Early

Purchasing the policy too late might exclude coverage for trip cancellation benefits that require the policy to be active at the time of your first trip expenditure. Conversely, buying a policy too early without confirming your visa or final dates can lead to administrative complications later. The best practice is to buy the policy shortly after booking your first major non-refundable expense.

Travel insurance is an essential investment, not an expense. Taking the time to compare benefits, disclose conditions, and understand the exclusions will protect your finances and guarantee a genuinely worry-free journey.