Whether it’s a staycation in the UK or an adventure abroad, heading off on a trip is always exciting. But before you hit the road, don’t forget to sort out your travel insurance! It’s your safety net, ensuring you’re covered in case things don’t go as planned.
In this article we’re breaking down why travel insurance is essential, what to look for in a good policy and how to find the best coverage for your trip. Yes we know it’s the most boring part of holiday planning, but it’s so important and you’ll be glad you took the time to sort it.
Please note: We are not insurance experts! Please do your own research and read up on reviews before deciding who you should go with when it comes to your own travel insurance.
Coming up in this guide
Travel Insurance: The Basics
What is travel insurance?
Travel insurance is a type of insurance designed to protect people against financial loss and unforeseen circumstances that may happen during travel. Travel insurance providers offer a range of coverage for various issues that travellers may encounter before or during their trip.
Why do I need travel insurance?
Travel insurance is there to save your wallet from unexpected expenses on holiday, whether it’s a hospital visit, cancelled flight or the airline losing your luggage. Instead of you footing the bill for these unforeseen expenses, the travel insurance company will help you cover the costs or recoup money already spent. Which expenses they help you with will depend on what’s included in the coverage you buy.
Also, if you’re doing sports or activities that are considered risky, and you have an accident, you really don’t want to be lumbered with hundreds of thousands of pounds worth of medical bills. Of course accidents can happen anywhere, which is all the more reason to get your cover in place.
Some destinations, like Jordan and Turkey for example, may need you to show proof that you have travel insurance to enter, and some tour operators will require you to have valid travel insurance – you’ll see it in their terms and conditions.
What types of travel insurance are there?
There are few different types of standard travel insurance but the main types are:
Single-trip insurance
This is the standard type of travel insurance, providing coverage for a single trip. There may be a limit on the duration of the trip.
Annual multi-trip insurance
With this option, you can take multiple trips within a 12-month period under a single insurance policy. There may be a limit on the duration of each individual trip.
Long-stay or backpacker insurance
Designed for extended holidays like around the world trips, gap years or lengthy cruises, this type of insurance can provide coverage for up to 18 months.
Couples insurance
Designed for couples living at the same address, this insurance will cover both people under one policy.
Family insurance
Generally covers two adults living under the same roof and up to eight children under the same policy.
Do I need travel insurance for a UK trip?
You should take out travel insurance for any trip you take, in the UK or abroad, as it will protect you from any unexpected costs you might incur. These could relate to things like cancellations or travel disruption that you have no way of anticipating.
If you’re taking out insurance for a single UK trip, then bear in mind that UK citizens receive free healthcare in the UK, so you can keep that in mind when it comes to choosing your medical coverage limit (more on this later!).
Your home contents insurance may cover you for some things already, like your mobile phone, so you might not need to get these covered by your travel insurance, but you will certainly need it to protect you from unexpected issues whilst you’re on your trip.
When should I buy travel insurance?
You should buy travel insurance as soon as you’ve booked your trip.
It’s important you are covered as soon as possible, because if anything goes wrong beforehand – like an illness or a cancellation – you won’t be covered if you haven’t got your travel insurance in place.
If you travel frequently, it’s helpful to have an annual policy as it means you’re continuously covered.
How much will my travel insurance cost?
The average price for single trip travel insurance is £21.
However, the cost will generally depend on your age, type of travel insurance, destination and how long you’re going away for.
Can I get travel insurance if I have a pre-existing health condition?
Yes, it’s possible to get travel insurance even if you have a pre-existing health condition. However, you may need a specialist travel insurance policy as many standard policies won’t cover pre-existing health conditions.
It’s important you declare any pre-existing health conditions while making your initial travel insurance application. If you don’t let the travel insurance company know about any health conditions you may risk the whole policy being void, even if the thing you’re claiming for has nothing to do with your pre-existing health condition.
What Makes Good Travel Insurance?
When selecting the best travel insurance policy for you, there are a few important things to consider.
What do travel insurance policies cover?
- Cancelling or cutting short your trip for reasons beyond your control
- Missed transport or delayed departure for reasons beyond your control
- Medical and other emergencies
- Personal injury
- Non-risky sports, excursions and other activities
- The cost of repatriation if you are ill or have a fatal accident
- Lost, stolen or damaged items, including baggage, passports and money
- Accidental damage or injury caused by you
What don’t travel insurance policies cover?
Typically travel insurance policies don’t cover losses resulting from factors within your control. For example, you won’t be eligible to claim for a trip cancellation if you realise your trip clashes with an important commitment back home.
Most policies won’t cover:
- Routine dental care
- Mental healthcare
- Medical tourism
- Risky sports and activities (you’ll usually need an add-on to your standard policy or a policy from a specialist provider)
- Pre-existing health conditions (you’ll likely need a policy from a specialist provider)
- Illegal or dangerous activities
- Losses due to war, civil disorder and riots
- Travel to destinations where the FCDO advises against ‘all but essential travel’. You can check advice for your destination here.
What coverage limit do I need?
Coverage limits refer to the maximum amount of money an insurance policy will pay out for a specific type of claim or expense.
Let’s say you’ve got travel insurance with a medical coverage limit of £10,000. That means if you rack up medical bills during your trip, the insurance will cover you up to that £10,000 limit.
The MoneyHelper website recommends the minimum amount of coverage you should have for different kinds of problems that might come up:
- Medical: £1m or more for travel to Europe and £2m or more for the US
- Cancellation/cutting your trip short: £2,000 or more
- Missed departure: £500 or more
- Delay: £200 or more if your travel is delayed
- Baggage cover: £1,500 or more if your baggage is lost
- Personal liability cover: £2 million or more if you cause accidental harm to someone else or someone’s property
Will I need to pay an excess?
Excess, also known as deductibles, is what you pay out of your own pocket before your travel insurance kicks in to cover your claim. This is a standard feature of insurance policies and when choosing your own policy, you should think about this excess amount.
If the excess is low, it’s great for you because you’ll have to pay less upfront if you make a claim. But these policies are pricier since the insurer knows they might have to pay out more.
On the flip side, higher excess policies are cheaper upfront, but you’ll end up paying more out of your claim if something happens. It’s a bit of a balancing act to find the right policy for you.
Is Covid-19 covered?
Most standard travel insurance policies now include COVID-19 cover, but it’s wise to double-check so you can ensure you’re adequately protected.
Will I need any add-ons?
Add-ons are extras that you can buy in addition to a standard travel insurance policy. These include things like gadget cover to protect your electronic devices or cover for winter sports or adventure activities. You’ll also need an add-on if you’re going on a cruise, as standard travel insurance policies usually only apply to land travel.
Is it worth getting an annual travel insurance policy?
When deciding between a single-trip policy and an annual multi-trip policy, the number of trips you plan to take within a year is a key factor. If you’re only going on one or two trips abroad a year, a single-trip policy is typically cheaper. However, if you frequently take several trips abroad each year, an annual multi-trip policy could work out better value for money.
How are travel insurance policies rated?
Travel insurance policies are generally judged by the Defaqto rating system.
Defaqto is an independent company that gives assessments of different financial products, including travel insurance. A group of Defaqto experts will check out how much coverage a travel insurance policy offers. They’re all about the nitty-gritty details, like whether your policy covers medical bills, cancellations and more.
Defaqto researchers have pinpointed the 50 most crucial features of travel insurance. The experts then go through each policy, scoring them based on these features and handing out ratings from one to five.
Here’s a breakdown of the Defaqto star ratings:
- 1 Star: Provides a low offering
- 2 Stars: Provides a below average quality offering
- 3 Stars: Provides an average quality offering
- 4 Stars: Provides a good quality offering
- 5 Stars: Provides one of the highest quality offerings in the market
So when you’re browsing insurance policies, make sure you check their Defaqto rating, as this can help you gauge how adequate the cover is and whether it’s the right policy for you.
The Best Travel Insurance Policies
How do I search for the best travel insurance policies?
When searching for the best travel insurance policies, you have a few options. Comparison websites can be helpful, allowing you to compare multiple policies side by side and find the one that suits your needs and budget. However, it’s also worth considering booking directly with insurance providers, as they may offer exclusive deals or discounts, and some providers aren’t listed on comparison sites.
The key is to shop around and ensure the policy works for you. Look for coverage that aligns with your travel plans, including benefits like medical coverage, trip cancellation/interruption, baggage loss/delay and gadget and sports cover. Consider factors such as coverage limits, exclusions and deductibles to make the best decision.
What are the best travel insurance comparison sites?
These sites compare travel insurances policies from a wide range of providers:
What travel insurance companies can I book direct with?
Here are some companies that are either not on comparison sites, or offer a discount when booking direct:
- Direct Line
- World Nomads
- Sainsbury’s Bank (Nectar card holders)
- Tesco Bank (Clubcard holders)
- The AA
Other Ways to Financially Protect Yourself on Holiday
The European Health Insurance Card (EHIC) and UK Global Health Insurance Card
If you’re a UK citizen and you have a European Health Insurance Card (EHIC), you can keep using it to access healthcare in EU countries until it runs out.
If you don’t have one, or it’s expired, you can apply for a Global Health Insurance Card (GHIC) on the NHS website.
Both cards can help you get free or affordable healthcare in all EU countries and some others; the NHS website gives details about where you can use each card.
Since the EHIC and GHIC cover certain medical expenses only, you will still need travel insurance to ensure you’re fully protected if something goes awry during your trip.
Cancellable accommodation
Look for accommodations that offer flexible cancellation policies, such as those with no or low deposits, or ones that provide refunds or allow free rebooking if your plans change.
Even if your accommodation doesn’t explicitly mention being flexible on cancellations in their policy, it’s still worth giving them a shout if you need to cancel. Tell them what’s going on – you might find they’re willing to waive some fees or let you rebook for free, even if it’s not spelled out in their terms. It never hurts to ask.
Also, booking your holiday with a provider that is a member of a trade association like ABTA (who cover UK-based package holidays that don’t include flights) or ATOL (who cover packages that include flights) can offer that extra peace of mind as they cover you for any cancellations that the provider makes.
For example, if the travel company you booked your holiday with goes out of business, if they are ABTA- or ATOL-protected then you’ll get a full refund and your transport home sorted.
Bank accounts with a travel cover package
Some high street banks offer accounts with added perks for an extra monthly fee. These perks often include things like travel insurance, mobile phone insurance and breakdown cover.
While it’s best to double check what’s specifically covered in the travel insurance, opting for this type of bank account could be a smart move if you’d already be paying separately for these types of insurance. It might save you some cash in the long run.
Pay for your holiday with a credit card
Consider using a credit card for added security.
Credit cards provide strong protection under Section 75, a UK consumer protection law that means that if something goes wrong the card company legally has to help you out.
As long as your purchase was over £100, under £30,000 and not from a third party seller, you may be able to get your money back. For example, if you experienced a flight delay or cancellation, and you’re finding it hard to get a refund from the airline, you can contact the credit card company to try and get your money back that way.
Credit cards like the AMEX Platinum Card come with some travel protection that can help you out if you have to cancel travel plans for personal reasons like getting sick before you start your journey or even being summoned for jury duty.
Get the Best Travel Insurance for You
Finding the best travel insurance is one of the most important things you can do to prepare for a trip. You want coverage that fits your needs, so check out different providers, read the fine print and compare quotes.
Remember, the best policy is one that offers comprehensive protection tailored to your specific travel plans.
