Booking a package holiday is one of the easiest ways to organise your travel. You get your hotel and flights bundled together, plus extras like transfers or car hire – and there are laws in place to financially protect you too.
So, you might be wondering if travel insurance is actually necessary when you’re booking with a package holiday provider? Here’s why we think so.
Do I Need Travel Insurance for a Package Holiday?
Yes, you still need travel insurance for a package holiday. While package holidays are protected by the Package Travel Regulations and financial protection schemes, like ATOL and ABTA, these don’t cover everything.
What does ATOL protection cover?
ATOL protection covers package holidays and trips that include a flight. It means that if the organisation goes bust, you won’t lose money or be stranded abroad.
You’ll be offered a refund if this happens before you travel, or the assistance to finish your trip and get home if it happens whilst you’re away.
What does ABTA protection cover?
ABTA protection is for packages that don’t include a flight – so for example coach, rail and cruise holidays.
You’ll get a full refund, or an alternative trip if it’s available.
What Are The Reasons I Need Travel Insurance for a Package Holiday?
Package holidays come with certain protections, but these don’t replace travel insurance.
While your tour operator is responsible for delivering the holiday you booked, travel insurance protects you financially if something unexpected affects your health, belongings or ability to travel.
Policies vary, so it’s important to compare providers and check what’s included. However, most travel insurance policies for package holidays typically cover the following:
Medical emergencies
If you get ill or injured while travelling, your holiday company isn’t responsible for your medical costs. Travel insurance can cover emergency treatment and hospital stays – and even medical evacuation or repatriation to the UK.
In Europe, a UK Global Health Insurance Card (GHIC) gives you access to state healthcare on the same terms as local residents. However, this doesn’t make treatment free and it won’t cover private care, mountain rescue or repatriation.
Trip cancellation or curtailment
If you need to cancel your holiday or go home early because of illness, injury or a bereavement – or unavoidable commitments like jury service – travel insurance may help you recover the costs.
Lost, stolen or delayed luggage
If your luggage goes missing, is stolen or arrives late, then your package holiday provider isn’t responsible for replacing your belongings.
Travel insurance can help cover the cost of replacements, and some policies even cover stolen personal items, like handbags or wallets.
Travel disruption
If your journey gets disrupted, say because traffic makes you miss a flight, or you get stranded en route and need emergency accommodation, then travel insurance can help you here too.
Specialist cover
Some policies also extras for things like tech equipment, winter sports or cancellation protection for some unforeseen events. Always check the policy wording to understand exactly what’s included.
Make Sure You Book Travel Insurance Alongside A Package Holiday
Your package holiday includes financial protection and protects your consumer rights, but it doesn’t cover every scenario. Travel insurance fills the gaps and protects you more fully from things like medical emergencies, cancellations and other disruptions.
It’s smart to take out travel insurance from the moment you book your trip. That way, you get peace of mind that if something goes wrong unexpectedly, you won’t be left with significant costs.
