Travel insurance in two minutes: what agents should explain

What travel insurance covers, common exclusions, cancel-for-any-reason and when to buy, explained simply for agents using regulator and government guidance.

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Clients don't need a lecture on policy wording. They need to know what insurance is for, what it usually leaves out, and when to buy it. A short, regulator-sourced explainer for the conversation at the desk.

By Traviology · Published 2026-11-12

"Do we need insurance?" usually comes at the end of a booking, when everyone's tired. It deserves better than "it's up to you" or a forwarded PDF. In many markets you need a licence to recommend a specific policy, and you shouldn't interpret medical or legal questions. What you can do is explain, in about two minutes, what insurance is for, using what regulators and governments actually say.

Minute one: what it does

It protects money already spent. The US National Association of Insurance Commissioners (NAIC) says trip cancellation and interruption cover pays back prepaid costs when a client has to cancel or cut a trip short for a reason the policy covers. Its examples: the traveller or a companion getting ill or injured and a doctor saying they can't travel, a family member being hospitalised, severe weather or carrier problems, a natural disaster at home or at the destination.

It pays for medical care far from home. The NAIC notes that most standard US health plans, and Medicare, are unlikely to cover care abroad. The UK government's travel insurance guidance gives some sobering examples of what emergency treatment can cost without cover: £25,000 or more for a broken leg in Spain with possible evacuation, £80,000 or more for a quad bike accident in Greece, and £150,000 or more for a stomach bug or infection treated in a US hospital.

It can get someone home. Medical evacuation cover pays for emergency transport to a hospital that can treat the client and, later, the trip home. The NAIC points out this matters most in rural or remote areas.

For some trips it isn't optional. Schengen visa applicants must show medical insurance covering emergency care, hospitalisation and repatriation, including in the event of death, according to the European Commission.

Minute two: what it doesn't do

Clients skip this part. It causes the angry phone calls later.

Pre-existing conditions. The NAIC lists them among the most common exclusions. The UK government's advice is blunt: declare existing physical and mental health conditions, including ones still being investigated, because failing to declare something may invalidate the policy.

Other common exclusions, per the NAIC: pandemics, civil unrest at the destination, pregnancy and childbirth, and risky activities such as bungee jumping or backcountry skiing. The UK guidance adds quad bikes and mopeds, which are often not covered, and incidents involving excessive alcohol.

Travel against official advice. Go where the foreign office says don't, and the UK government warns your policy may be invalid.

Supplier failure. If an airline or travel company goes bust, standard policies typically don't pay, according to the same guidance. Ask about it separately.

Known events. The NAIC notes that once a storm has been named, a newly bought policy is unlikely to cover claims related to it.

Three things worth knowing in more depth

Cancel for any reason (CFAR)

CFAR is an add-on that lets clients cancel for reasons a standard policy wouldn't accept, and it isn't a full refund. The NAIC says it typically reimburses 50% to 75% of the trip cost, usually has to be bought within a set time after booking, requires the full trip cost to be insured, and often only allows cancellation 48 hours or more before departure. It can add close to 50% to the price of the insurance.

What it costs

Expect to pay 5% to 10% of the total trip price, says the NAIC, depending on the season, destination, the traveller's age and the cover chosen.

Not everything sold alongside is insurance

The NAIC points out that cancellation fee waivers and travel assistance services are often bundled with insurance but are not insurance products, so they are not overseen by insurance regulators. Clients should know which part of what they bought is which.

When to raise it

The UK government says to buy cover as soon as possible after booking. So the practical answer to "when" is at booking, not the week before departure. The NAIC's named-storm example shows why: cover bought once a problem is known usually won't help with that problem. Buy early.

The two-minute script

"Insurance protects the money you've already paid and covers medical costs abroad, which can be very large. It usually won't cover conditions you haven't declared, risky activities, or travel against government advice, so read the exclusions and declare everything. It's best bought now, while nothing has gone wrong. I can't tell you which policy to choose, but I can tell you what to check."

Then write the trip's prepaid, non-refundable total down for the client. It's the number they'll need when they compare policies. Agencies that quote whole trips, like those using our Trip Planner, already have that total in front of them.

Sources

• Should I get travel insurance? (NAIC Consumer Insight, 16 June 2026)

• Travel insurance (NAIC insurance topics, updated April 2026)

• Foreign travel insurance (GOV.UK, Foreign, Commonwealth and Development Office)

• Applying for a Schengen visa (European Commission, Migration and Home Affairs)

General information, not insurance, medical or legal advice. Checked October 2026.