Travel Insurance Guide: 5 Things You Need to Know

Do you think of travel insurance as an unnecessary expense? Consider one traveler's real experience. In 2024, a Korean traveler in his 30s, whom we'll call A, was riding a motorbike in Bangkok, Thailand, when an accident left him with a fractured femur. Between the private hospital's emergency room fees, surgery, and a five-day hospital stay, the total bill came to roughly 8 million won. Fortunately, A had travel insurance and the policy covered the full amount. Without it, he would have had to pay out of pocket several times over what his entire trip had cost.

Stories like this are far from rare. Unexpected accidents and illnesses abroad can happen to anyone, and overseas medical costs can be incomparably higher than what you'd pay at home. For as little as the equivalent of 10,000 to 30,000 won, travel insurance can cover medical bills and other losses ranging from millions to tens of millions of won, making it one of the smartest investments you can make for a trip. This article walks you through five essential things you should know about travel insurance in detail.

1. Understanding the Types of Travel Insurance

Travel insurance isn't a single, simple product. It's made up of several coverage components designed for different risk situations, and which components are included varies from policy to policy. You need a solid grasp of each coverage type to choose the insurance that fits you.

Overseas illness medical coverage covers the cost of treating illnesses that arise during your trip. This ranges from common ailments such as colds, food poisoning, and stomach trouble to serious conditions. It's fair to call this the most important coverage in a travel insurance policy. Higher coverage limits mean higher premiums, but we recommend a limit of at least 50 million won. If you're traveling to regions with expensive healthcare such as the United States or Europe, coverage of 100 million won or more is a safer choice.

Overseas injury medical coverage covers the cost of treating injuries caused by accidents. This applies to cases such as falling and getting hurt, being in a traffic accident, or getting injured during a sporting activity. If you're planning an activity-heavy trip (skiing, scuba diving, bungee jumping, and so on), be sure to check the coverage limit for this component. Some policies treat certain high-risk activities as exclusions, so take care.

Liability coverage covers compensation when you cause harm to another person during your trip. For example, if you damage hotel property or accidentally injure someone else. Loss/theft of personal belongings covers cases where possessions such as a camera, laptop, or smartphone are stolen or damaged. Flight delay coverage covers the additional costs (accommodation, meals, and the like) that arise when a flight is delayed beyond a set amount of time.

2. Timing: When Should You Buy?

You must buy travel insurance before you depart. This isn't up for negotiation; it's a rule. Most travel insurance policies start their coverage as of your departure date, and in most cases you can't buy a policy once you've already left. The idea of "I'll just sign up after I arrive" is very risky.

There are a few important points to keep in mind about timing. First, you can still buy on your departure day. Many products can be purchased quickly online, so you can sign up right before departure at the airport. Still, we recommend buying ahead of time with some margin to spare. When you rush, you may not be able to review the coverage details carefully.

If your itinerary might change, choose a flexible product. Some insurance products allow free cancellation or let you extend the travel period. It's especially wise to check whether the product allows an extension in case your stay overseas gets longer (flight cancellations, natural disasters, and so on).

Also, if you're traveling in a group, we recommend buying individually. Insurance bundled into a travel agency's package product often has low coverage limits. Signing up individually for a product with higher coverage limits is safer. For family trips, some products offer a discount when you enroll as a family, so it's worth comparing.

3. Reviewing Coverage Scope and Exclusions Carefully

The area that generates the most disputes in travel insurance is the exclusions. Having insurance doesn't mean every situation is covered. You must review the exclusions in the policy terms and check whether the coverage matches your travel style.

High-risk sports are treated as exclusions by many policies. Skydiving, hang gliding, scuba diving (beyond a certain depth), bungee jumping, rafting, horseback riding, and similar activities are often excluded. If you're planning any of these, you should choose a product that includes a rider covering the activity in question. Some insurers offer a separate leisure-sports rider, so consider adding it.

Pre-existing conditions are another important exclusion. If a condition you already had before the trip worsens during travel, it may not be covered. For example, if someone with an existing herniated disc visits a hospital for back pain during a trip, it may be treated as a pre-existing condition and the claim may not be paid. If you have a pre-existing condition, be sure to check whether the product covers it.

Alcohol-related accidents are also excluded under most policies. Accidents or injuries that occur while intoxicated are often not covered. Enjoying a drink at your destination is one of the pleasures of travel, but keep in mind that drinking to excess can create risks that fall outside your coverage. Pregnancy-related costs are generally not covered either. For expectant travelers, there may be limits based on the number of weeks of pregnancy, so check in advance.

4. The Reality of Overseas Medical Costs

Korea's medical costs are among the lowest in the world. Thanks to the national health insurance system, people use medical services without worrying much about the bill, but the situation abroad is entirely different. Once you understand the reality of overseas medical costs, you'll feel the importance of travel insurance all the more.

The United States has the most expensive healthcare in the world. A single emergency room visit starts at 2 to 5 million won, and a CT or MRI scan adds another 1 to 3 million won. If you're admitted, it can run 3 to 5 million won per day, and if surgery is needed, the bill can reach anywhere from tens of millions to hundreds of millions of won. It's common for treating a fracture alone to come to more than 10 million won. When traveling to the U.S., choosing a policy with a medical coverage limit of at least 100 million won is the safer choice.

Europe is no small matter either. Emergency treatment in Western European countries such as the U.K., Switzerland, and Germany can cost millions of won. Switzerland in particular is among the countries with the most expensive healthcare in Europe, where an emergency room visit alone can run over 1 million won. For European trips as well, medical coverage of at least 50 million won is recommended.

Japan has relatively reasonable medical costs, but its health insurance doesn't apply to foreigners, so you pay the full amount yourself. Routine care is on the order of tens of thousands of won, but if hospitalization or surgery is required, the bill can reach millions of won. In Southeast Asia, local public hospitals are inexpensive, but the private international hospitals that are convenient for foreigners charge quite high fees. Get treated at an international hospital such as Bumrungrad in Bangkok and you'll be billed at developed-country levels.

You should also factor in medical evacuation costs. If proper treatment isn't available locally, you may need to be transported to a hospital in Korea or a nearby developed country, and that cost can run from tens of millions of won to over 100 million won. Emergency evacuation from remote areas or islands in particular requires a helicopter, so the cost is astronomical. The medical evacuation coverage in travel insurance can be a lifeline in exactly these extreme situations.

5. A Complete Guide to the Claims Process

Just as important as buying the insurance is knowing the claims process ahead of time. No matter how good the policy you've bought, it means nothing if you can't get paid because you didn't know how to file. If you receive medical care or have an accident abroad, follow these steps.

First, contact your insurer right away. When an accident or illness occurs, call the insurer's emergency contact (24-hour hotline) as soon as possible. The emergency contact is listed on the policy certificate you received when you signed up. When you notify the insurer of the situation, they can direct you to hospitals available locally or introduce you to hospitals where you can use a direct-billing service. At hospitals offering direct billing, the insurer pays the hospital directly, so you don't have to front a large sum yourself.

Second, keep all your documents thoroughly. Collect every medical-related document, including hospital records, the doctor's diagnosis, receipts, and prescriptions, without missing any. Since a translation may sometimes be needed, it's a good idea to request documents drawn up in English as the default. For flight delays, you'll need the delay confirmation issued by the airline; for theft of belongings, a police report from the local authorities is essential.

Third, file within the set deadline after returning home. Most insurance products require you to file a claim within a certain period after you return (typically 60 to 90 days). If you miss the deadline, the claim may be rejected, so once you're back, prepare and submit your claim documents promptly. More insurers now let you file online, which has simplified the process, but if documents are missing, requests for additional paperwork can delay payment, so the key is to gather your documents completely while you're still abroad.

Credit Card Travel Insurance vs. a Separate Policy

Many people think, "My credit card includes travel insurance, so I don't need a separate policy." But there's a big difference in coverage between credit card insurance and a separate travel insurance policy.

The biggest limitation of credit card insurance is its low medical coverage limit. Coverage on the order of 10 to 30 million won can be exhausted quickly if you're admitted for treatment in the U.S. or Europe. Credit card insurance also comes with a condition that you must pay for your airfare or travel expenses with that card for the coverage to apply, so people who don't know this and pay with a different card can end up uncovered.

The smartest strategy, then, is to use credit card insurance and a separate policy together. Keep the credit card insurance as your baseline coverage, and separately add a travel insurance policy with a high medical coverage limit for greater safety. Especially if you're traveling to regions with expensive healthcare such as the U.S. or Europe, a separate policy is not optional but essential.

Wrapping Up: The Smartest Investment for a Safe Trip

Travel insurance is a safety net that protects the joy of your trip. For a small cost of the equivalent of 10,000 to 30,000 won, you can guard against financial losses ranging from millions to tens of millions of won, and gain peace of mind on top of that. Simply knowing you have insurance can greatly reduce the anxiety you feel while traveling, letting you travel more enjoyably and freely.

Don't leave insurance out of your trip preparations. After your passport, flights, and accommodation bookings, travel insurance is the next most important thing. Before you leave, run through the five essentials outlined in this article and choose the insurance product that fits you. A safe trip is the start of a happy one.

When you build your itinerary with myTravel, try making a habit of checking on insurance at the same time. With a tailored itinerary plus solid insurance in place, your trip can stay a pleasant memory whatever the circumstances.