Travel Insurance Mistakes to Avoid in 2025 – A Guide for Digital Nomads & Budget Travelers

By Budget Nomad

Why Travel Insurance Still Matters in 2025

If you’re a digital nomad, backpacker, or budget traveler, you might be wondering: “Do I really need travel insurance?”

The answer is yes — 100% yes.

After 13 years on the road and only one claim (for pneumonia in Peru), I’ve learned that travel insurance is something you hope you never need — until you do. Whether you’re heading to Thailand, Georgia, Colombia, or anywhere in between, skipping insurance can become the most expensive mistake you’ll ever make.

In this post, I’ll walk you through:

• The top mistakes travelers make with travel insurance

• What you actually need from a policyb

• My recommended providers: World Nomads and SafetyWing

• How to save money without skipping coverage

  
  

🛑 Mistake #1: Not Buying Travel Insurance at All

This is by far the biggest mistake travelers make — especially young backpackers heading to Southeast Asia. They feel invincible and assume, “What could possibly go wrong?”

But here’s the reality:

• A broken leg in Thailand = $10,000+

• A hospital stay in Bali = $5,000–$20,000

• Emergency evacuation = $50,000–$100,000+

  
  

And without insurance, you pay everything — or worse, get refused treatment. I’ve seen people resort to GoFundMe to pay their medical bills.

✅ Solution:

Always get coverage BEFORE you leave your home country. That way you’re covered from Day 1 — including for trip cancellation, delays, or lost luggage.

💳 Mistake #2: Relying on Credit Card Travel Insurance

Many travelers assume their credit card covers them, but most credit card insurance:

• Has very limited coverage

• Only applies to short trips

• Doesn’t cover adventure activities (like hiking, scuba diving, or motorbiking)

• Often excludes COVID-19 or repatriation

  
  

✅ Solution:

Use credit card insurance as a bonus, but don’t rely on it. Always buy a dedicated travel insurance policy tailored to your trip type and destination.

🌍 Mistake #3: Buying Insurance AFTER Leaving Home

If you’ve already started your trip and then try to buy insurance from a provider in your home country — chances are, it won’t be valid. Most policies require you to start and end in your country of residence.

✅ Solution:

Buy before departure, OR use SafetyWing, which allows you to purchase while abroad.

🦠 Mistake #4: Not Checking for COVID-19 Coverage

Yes, we’re in 2025 — but COVID-related claims are still a thing. Some insurers only cover basic treatment. Others exclude quarantines, testing, or trip cancellations related to COVID outbreaks.

✅ Solution:

Read the policy wording. Look for “pandemic coverage”, “quarantine expenses,” and “trip interruption due to illness.”

📜 Mistake #5: Ignoring the Small Print

You’d be surprised how many travelers don’t know what they’re covered for — or what’s excluded.

Do you plan on:

• Riding scooters in Vietnam?

• Skiing in Georgia?

• Working remotely from different countries for months?

Your travel insurance needs to match your travel style.

🔧 Travel Insurance Features You Should Look For

Here’s what matters most in 2025:

✅ 1. Medical Coverage

Min. $100,000 USD for accidents, injury, and illness.

✅ 2. Repatriation

Evacuation back to your home country with medical staff if needed. Some policies exclude this — don’t buy them.

✅ 3. Excess / Deductible

The amount you pay before insurance kicks in.Example: My SafetyWing plan has a $250 excess. You can adjust this to lower your monthly premium.

✅ 4. Direct Billing vs. Reimbursement

Some companies work directly with hospitals, others make you pay upfront and claim later. Make sure you have a credit card with enough limit just in case.

🏆 Recommended Travel Insurance Providers

🌐 World Nomads

Great for backpackers, long-term travelers, and those doing adventure sports.

• Comprehensive coverage

• Includes many “high-risk” activities

• Slightly expensive, but very reliable

• Available to residents of many countries

• Offers basic and explorer plans

👉 Check prices for World Nomads here 

🌐 SafetyWing (My Personal Choice)

Perfect for digital nomads or remote workers

• Starts at $42/month for travelers under 40

• Coverage available while abroad

• Cancel anytime

• Covers COVID-19

• Rolling monthly plan

• Coverage up to age 65

  
  

👉 Get covered with SafetyWing here 

📝 Final Checklist Before Buying Insurance

✅ Buy before your trip begins✅ Make sure your destination is covered✅ Double-check for COVID, evacuation, and adventure activity coverage✅ Choose between World Nomads (comprehensive) and SafetyWing (flexible)✅ Read the small print

💬 Have a Question?

Drop it in the comments below or message me on Instagram @budgetnomad0. I reply to everyone.

💼 Affiliate Disclaimer

Some links in this post are affiliate links. If you purchase through them, I may earn a small commission — at no extra cost to you. It helps keep this blog ad-free and supports the channel.

Thanks for your support 🙏

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