Understand the Risks of Travelling Without Insurance

Imagine you're on your dream vacation when suddenly your flight gets cancelled, or you fall ill and need medical attention. Unfortunately, unforeseen circumstances, such as flight cancellations, medical emergencies, lost luggage can happen, and they can be costly.

The Risks of Travelling Without Insurance

Without travel insurance, travellers are exposed to various risks that can impact both their health and finances. Let's explore these risks in more detail. Below, we provide examples of common travel insurance claims and other unexpected situations where travel insurance can be beneficial:

1. Medical Emergencies Abroad

With medical expenses accounting for over 40% of all travel insurance claims covered by AIG in 2023, it’s something you really need to be covered for, especially because without insurance, the cost of treatment abroad can be astronomical.

For instance, according to official website of the US government, treatments like fixing a broken leg can reach up to $7,500 and the average cost of a 3-day hospital stay around $30,000. And of course, a medical emergency can occur anywhere, with our quick claims process we'll always aim to make your travel insurance claim as quick and easy as possible.

Tip: Explore our tips for travelling to the US, Canada or the Caribbean.

2. Trip Cancellations

The second most common travel expense claim is for trip cancellations, accounting for over 35% of all claims in 2023. When you add in the other associated factors such as missed connections and travel delays, it actually surpasses medical expenses.

Travel plans can change unexpectedly due to illness, accidents, or other unforeseen events. Travel insurance can cover the costs associated with these cancellations and help you avoid financial losses.

3. Lost or Stolen Belongings and Baggage

One of the most frustrating things that can happen while traveling is losing your luggage or having it stolen. Unfortunately, this was the fourth most common travel insurance claim in 2023. Beyond the inconvenience of missing possessions, it's the sentimental value and practical necessity of these belongings that weigh heavily on travellers. From cherished mementos to essential items, the loss can be devastating.

However, with the right travel insurance policy in place, you can safeguard your belongings and alleviate the stress of such situations. Whether it's compensation for lost items or assistance in replacing essential belongings, travel insurance offers a much-needed safety net.

Tip: Find out what are the 8 most common travel scams in Europe and 8 important airport safety tips.

4. Travel Delay

Travel delays can be frustrating and disruptive, especially when they cause you to miss connecting flights or other important reservations. Whether it's due to weather conditions, mechanical issues, or strikes, travel delays can have a significant impact on your trip. In some cases, they may even force you to cancel your entire itinerary.

Travel insurance can help ease the financial burden of travel delays by covering expenses such as meals, accommodations, and transportation while you wait for your delayed flight or connection. Some policies also offer coverage for missed connections or alternative transportation arrangements if your original plans are disrupted.

5. Emergency Evacuation

In cases of serious injury or natural disasters, emergency evacuation may be necessary. This is often a covered benefit in travel insurance policies. But do bear in mind that travel to or through Cuba, Iran, Syria, North Korea or the Crimea region, or countries where the Department of Foreign Affairs have allocated a security status of 'avoid non-essential travel' or 'do not travel' is not covered in our policy.

Other exclusions and conditions may apply so please check the Policy Wording for details and keep up to date on the current security status of foreign countries.

6. Adventure Travel and Extra Risks to Consider

Adventure travel, such as hiking or skiing, often involve higher levels of risk for injury or accidents compared to typical travel experiences, so it's essential to ensure that your insurance policy adequately covers such activities.

Considering extra risks in adventure travel when getting travel insurance helps ensure that you have comprehensive coverage tailored to your adventurous pursuits, offering peace of mind during your trip.

Tip: If you’re planning to hit the slopes this year, we’ve compiled a list of the best ski resorts in Europe.

7. Additional Coverage for International Travel

Traveling internationally can introduce unique challenges, from language barriers to different medical systems. Comprehensive travel insurance can ease these challenges. In regions where language barriers hinder communication, travel insurance often offers 24/7 multilingual assistance services, ensuring travellers can easily access help when needed.

Additionally, comprehensive policies typically include coverage for medical emergencies, bridging the gap between unfamiliar medical systems and the need for urgent care.

Whether it's arranging for translation services or facilitating payments for medical treatment, travel insurance offers peace of mind and practical solutions, allowing travellers to navigate international territories with confidence and ease.

8. Importance of Disclosing Pre-existing Medical Conditions

It's crucial to disclose any pre-existing medical conditions when purchasing travel insurance. By providing accurate information, travellers ensure they receive tailored coverage for potential medical emergencies, avoid claim denials or limited coverage, and comply with legal obligations, ultimately allowing them to travel with peace of mind knowing they are adequately protected.

Types of Travel Insurance From AIG

AIG offers various types of travel insurance, tailored to different needs. You should ensure that you have the right cover for the type of trip you're taking.

  • Single Trip: This provides flexible cover for a short break or one-off holiday, up to 120 days. It's the best online travel insurance option if you are not expecting to travel again in the next 12 months.

  • Annual Cover: Also known as multi-trip insurance. This provides cover for those that do a lot of travelling. With annual travel insurance cover, cut out the additional costs and hassle of purchasing individual policies every time you need to travel.

  • Long Stay: Sometimes called Long Term or Extended Stay Travel Insurance, this is an affordable policy designed to provide travel insurance when travelling abroad for long periods, typically between 3 and 12 months. This insurance is only available to those aged between 18 and 35.


What does travel insurance cover?

Travel insurance typically covers medical emergencies, trip cancellations, lost luggage, and sometimes emergency evacuations.

What Does Travel Insurance Not Cover?

Travel insurance may not cover incidents related to pre-existing conditions, high-risk activities without specific coverage, or some events occurring under the influence of drugs or alcohol.

Can you take out travel insurance after booking?

Yes, you can take out travel insurance after booking your trip, but it's advisable to do it as soon as possible after making your booking.

Does travel insurance cover cancellation of trip?

Yes, most policies cover trip cancellation due to unforeseen circumstances like illness or severe weather.

Is travel insurance necessary for Europe?

While not always mandatory, see the Schengen Visa mentioned above, it's highly recommended due to potential medical costs and travel disruptions.

Check out our full AIG Trave Insurance FAQ page.


Travelling without insurance can expose you to various risks that can impact both your health and finances. By understanding the importance of travel insurance, you can make informed decisions and protect yourself from financial losses and other potential setbacks during your travels. With AIG's travel insurance policies, you can choose the one that best suits your needs and enjoy your trip with peace of mind, with all types of cover offering 24-hour support.

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