Top 5 Mistakes Travelers Make When Buying Travel Insurance

You’ve booked the flights, found the perfect hotel, and maybe even picked out the restaurants you’ll visit — but when it comes to travel insurance, most people just click “add to cart” and hope for the best. The truth is, travel insurance isn’t a one-size-fits-all product. It’s a layered safety net with terms, timelines, and fine print that matter. And if you’re not careful, a few small mistakes can leave you underinsured or unable to file a successful claim when you need it most.

In this guide, we’ll break down the five most common mistakes travelers make when buying travel insurance, how to avoid them, and why choosing a modern provider like Faye Travel Insurance can make all the difference. For a deeper dive into coverage types, visit What Does Travel Insurance Actually Cover?

Mistake #1: Buying the Cheapest Policy Without Comparing Coverage

It’s tempting to sort travel insurance options by price and grab the cheapest one. After all, it’s “just in case,” right? But when something goes wrong on the road, the cheapest policy can quickly prove to be the most expensive mistake. Low-cost plans often come with restrictive terms, minimal medical coverage, and limited reimbursement caps that don’t come close to your actual costs.

For example, a budget policy might cap emergency medical coverage at $10,000, which sounds decent — until you realize that a single hospital visit abroad can exceed that easily, especially if evacuation or surgery is required. The best travel insurance plans provide comprehensive protection that includes trip cancellation, medical emergencies, baggage loss, and 24/7 assistance.

Avoid this mistake by:

• Comparing benefit limits and exclusions — not just price.

• Looking for at least $100,000 in medical coverage and $250,000 for evacuation.

• Choosing a reputable provider like Faye, which balances affordability with full, transparent coverage.

Mistake #2: Buying Travel Insurance Too Late

Many travelers wait until the week before departure to buy insurance, assuming they can purchase it anytime. Unfortunately, that’s one of the biggest myths in travel planning. Most premium protections — like Cancel for Any Reason (CFAR) or coverage for pre-existing conditions — are only available if you buy within 14–21 days of your first trip payment. Waiting too long means losing access to these benefits entirely.

This delay can also backfire if you have to cancel before purchasing your policy. Once an event is considered “known” (like a named storm or public health alert), it’s no longer eligible for coverage. Buying early protects you from the unexpected before it happens.

Avoid this mistake by:

• Purchasing your plan immediately after booking flights or hotels.

• Double-checking the policy’s timing window for CFAR and pre-existing conditions.

• Using Faye’s app to set reminders for upcoming bookings and ensure you’re covered from day one.

Mistake #3: Not Reading the Policy Details (a.k.a. Skipping the Fine Print)

Travel insurance policies can feel like reading legal code — small print, long clauses, and too many exclusions to count. But ignoring the details is one of the most common (and costly) mistakes travelers make. Many assume travel insurance covers every possible scenario, only to find out too late that certain claims — like canceling because you “don’t feel like going anymore” — aren’t valid.

Understanding what your plan doesn’t cover is just as important as knowing what it does. For instance, high-risk activities like skiing or diving often require adventure add-ons, and routine medical care or pregnancy-related treatments are typically excluded.

Avoid this mistake by:

• Reviewing your policy summary carefully before purchase.

• Asking your provider to clarify unclear sections or exclusions.

• Choosing a provider like Faye Travel Insurance, which breaks down coverage in clear, everyday language within their mobile app.

(Want a full breakdown of what’s covered? Read What Does Travel Insurance Actually Cover?)

Mistake #4: Assuming Credit Card Coverage Is Enough

It’s true — many premium credit cards offer built-in travel protections like trip delay or baggage loss coverage. But these are not substitutes for full travel insurance. Credit card protections typically cap reimbursements at a few hundred dollars and rarely include major benefits like medical evacuation, international hospital care, or cancel-for-any-reason options.

For example, your card might cover $500 for a delayed suitcase, but it won’t pay for a $30,000 overseas hospital bill if you fall ill abroad. Worse yet, these benefits usually only apply if you booked your entire trip using that specific card.

Avoid this mistake by:

• Reading your credit card’s travel benefit guide to see what’s actually covered.

• Supplementing credit card coverage with a dedicated policy like Faye, which offers global medical coverage, digital claims, and 24/7 human support.

• Using your credit card and Faye together for the strongest protection.

Mistake #5: Overlooking Medical and Evacuation Coverage

This one is especially common among healthy travelers who assume, “I’ll be fine.” But even minor medical issues can become major expenses abroad. A sprained ankle during a ski trip or food poisoning in another country can lead to thousands in bills — especially if you need to be evacuated to another facility or back home.

Most domestic health insurance plans, including Medicare, don’t cover international emergencies, and medical evacuation alone can cost anywhere from $50,000 to $200,000. Having strong medical and evacuation coverage isn’t overkill — it’s essential.

Avoid this mistake by:

• Ensuring your policy includes at least $250,000 in evacuation coverage.

• Choosing a plan like Faye Travel Insurance, which offers emergency medical protection, direct reimbursements, and global assistance teams that coordinate your care if you’re hospitalized abroad.

• Always carrying digital copies of your policy and medical documents in case of emergencies.

Bonus Mistake: Forgetting to Check Family or Group Coverage

Families and group travelers often assume that one travel insurance plan automatically covers everyone — but that’s not always the case. Some policies require you to list each traveler individually, while others offer shared benefits with separate limits per person. Skipping this step can leave children or older travelers partially uncovered during emergencies.

With Faye, family coverage is built into the platform, allowing you to manage everyone’s protection in one place, all synced through the app.

Avoid this mistake by:

• Verifying that each traveler’s name, age, and trip details appear correctly on the policy.

• Choosing family-friendly coverage like Faye Travel Insurance, which keeps everyone protected under one plan.

How to Avoid These Mistakes Altogether

Buying travel insurance doesn’t have to be confusing — it just requires awareness. A little planning goes a long way toward making sure your policy works when you need it most.

Simple Rules to Follow

1. Buy early — ideally within two weeks of your first trip deposit.

2. Compare coverage, not just price.

3. Read the fine print before purchasing.

4. Don’t rely solely on credit card coverage.

5. Always prioritize medical and evacuation protection.

Ready to buy smarter? Get your quote from Faye Travel Insurance here.

Final Thoughts: Travel Smart, Not Sorry

Travel insurance is one of those things you hope you’ll never need — but when you do, it’s a lifesaver. The key is not just having a policy, but having the right policy. By avoiding these five common mistakes, you’ll travel knowing that you’re truly protected against the unexpected, whether it’s a flight cancellation, lost luggage, or a sudden hospital visit abroad.

With Faye Travel Insurance, you’ll get comprehensive coverage, real-time reimbursements, and 24/7 support — all in an easy, app-based experience. Because the only surprises you want on vacation are the good ones.

Learn more: Read What Does Travel Insurance Actually Cover?