Travel insurance is one of those costs that feels unnecessary until you need it. Medical emergencies, cancellations, and lost baggage can cost thousands — far more than any insurance premium.
Why You Need Travel Insurance
| Risk | Potential Cost Without Insurance |
|---|---|
| Hospital stay (USA) | £10,000–£50,000+ per day |
| Medical repatriation (air ambulance) | £20,000–£100,000+ |
| Hospital stay (Europe) | £500–£5,000+ per day |
| Trip cancellation | Cost of flights, hotels, activities |
| Lost/stolen baggage | £500–£5,000+ |
| Legal liability (accidental injury to someone) | Unlimited |
The GHIC (Global Health Insurance Card) only covers state healthcare in Europe — it does not cover repatriation, private treatment, or non-medical losses.
Types of Cover
| Type | Best For | Typical Cost |
|---|---|---|
| Single trip | One-off holiday | £15–£50 (Europe), £30–£100 (worldwide) |
| Annual multi-trip | 2+ trips per year | £30–£80 (Europe), £60–£150 (worldwide) |
| Backpacker / long-stay | Extended travel (30+ days) | £50–£300 |
| Family | Family with children | 10–20% more than individual |
| Cruise | Cruise holidays | Higher premium (specialist cover) |
What’s Covered
Standard Cover
| Cover | Typical Limit |
|---|---|
| Medical expenses | £5–£10 million |
| Repatriation | Included in medical cover |
| Cancellation | £1,000–£5,000 |
| Curtailment (cutting trip short) | £1,000–£5,000 |
| Baggage | £1,000–£3,000 |
| Personal money | £200–£500 |
| Travel delay | £100–£500 |
| Personal liability | £1–£2 million |
| Legal expenses | £10,000–£50,000 |
Optional Extras
| Extra | What It Covers |
|---|---|
| Winter sports | Skiing, snowboarding (equipment, piste closure) |
| Adventure activities | Scuba diving, bungee jumping, etc. |
| Cruise cover | Missed port, cabin confinement, itinerary change |
| Golf cover | Equipment, green fees for unused rounds |
| Business cover | Laptop, business equipment, samples |
| Wedding cover | Wedding abroad cancellation, outfits |
How to Choose
| Factor | What to Check |
|---|---|
| Medical cover | At least £5 million (£10 million for USA) |
| Cancellation cover | Enough to cover your total booking cost |
| Excess | How much you pay per claim (typically £50–£150) |
| Activities | Are your planned activities covered? |
| Pre-existing conditions | Declared and covered? |
| Age limits | Some policies have upper age limits |
| Trip duration | Does it cover the full length of your trip? |
| Geographical cover | Europe only or worldwide (including/excluding USA)? |
Pre-Existing Medical Conditions
| Condition Type | Impact on Insurance |
|---|---|
| Well-controlled (e.g. managed blood pressure) | Usually covered with small premium increase |
| Moderate (e.g. diabetes, asthma) | Covered with increased premium |
| Complex (e.g. cancer in treatment, recent heart surgery) | Specialist insurer needed; higher premium |
| Not declared | Claim will be rejected |
Always declare all pre-existing conditions. Non-disclosure will invalidate your entire policy — not just claims related to that condition.
Making a Claim
| Step | Action |
|---|---|
| 1 | Contact insurer’s emergency line (for medical emergencies, before treatment) |
| 2 | Keep all documentation (receipts, police reports, medical records, boarding passes) |
| 3 | Report theft to local police within 24 hours and get a crime reference number |
| 4 | Complete claim form within the required timeframe (usually 30–90 days) |
| 5 | Provide supporting evidence |
| 6 | Check the decision and appeal if necessary |
Common Reasons Claims Are Rejected
| Reason | How to Avoid |
|---|---|
| Pre-existing condition not declared | Always declare everything |
| Activity not covered | Check policy before booking |
| Travelling against FCDO advice | Check travel advice before travelling |
| Alcohol-related incidents | Most policies exclude alcohol/drug-related claims |
| Inadequate evidence | Keep all receipts, reports, and documentation |
| Claim outside policy limits | Check limits before travel |
Tips for Saving on Travel Insurance
- Buy annual if you travel 2+ times per year
- Buy early — cover starts from purchase date (cancellation protection)
- Compare prices — use comparison sites
- Check existing cover — some bank accounts and credit cards include travel insurance
- Increase the excess — lowers the premium
- Skip unnecessary extras — only add cover you need
What Travel Insurance Typically Costs
Actual premiums vary significantly based on destination, age, and health. Indicative 2025 market prices:
| Policy type | Typical range | Notes |
|---|---|---|
| Single trip (Europe, age 30, 1 week) | £8–£25 | Much cheaper if healthy |
| Single trip (worldwide, age 30, 2 weeks) | £25–£60 | USA/Canada pushes premium up |
| Annual multi-trip (Europe) | £30–£80 | Covers unlimited trips under 31 days |
| Annual multi-trip (worldwide) | £60–£180 | Check max trip duration |
| Age 65+, single trip (Europe) | £30–£120 | Pre-existing conditions a major driver |
| Backpacker (6 months, worldwide) | £150–£400 | Includes higher-risk activities |
Using a comparison site (comparethemarket, MoneySuperMarket, Go.Compare) takes 10 minutes and typically saves £10–£50 on a standalone policy.
Understanding your Policy Schedule
When you buy travel insurance, you receive a policy schedule (your specific details) and a policy wording document (the full terms). Most people never read the wording — which is exactly how insurers avoid paying claims. Key things to look for:
- Section limits: Medical cover limit (should be £2m+ for USA/Canada), baggage limit per item (often as low as £200), and the single article limit.
- Excess: The amount you pay first on any claim. A £100 excess on a £150 lost item means you only get £50.
- Hazardous activities schedule: Lists activities covered. Rock climbing, motorcycling, or skiing may require add-ons.
- Alcohol clause: Most policies exclude claims where alcohol was “a significant factor.” This can include a stolen bag while drunk.
- Pre-existing conditions declaration: You must disclose all conditions. If in doubt, disclose it. Undisclosed conditions invalidate the whole policy, not just the medical section.
Pre-Existing Medical Conditions and Travel Insurance
Pre-existing conditions are the single biggest reason travel insurance claims are disputed. You must declare any condition that a doctor has investigated, diagnosed, or prescribed medication for in the past 2 years (some policies look back 5 years).
Declaration does not necessarily mean you can’t get cover — it means you’ll know what IS and isn’t covered, and your premium will reflect the actual risk.
For those with serious or multiple conditions, specialist insurers often offer better cover at lower cost than mainstream providers:
- AllClear — specialist in complex medical conditions
- Staysure — over 50s and pre-existing conditions
- Free Spirit / Freedom Insurance — specialist brokers
- BIBA (British Insurance Brokers’ Association) — find.biba.org.uk can help find brokers
Travel Insurance and the EHIC/GHIC Card
The Global Health Insurance Card (GHIC) replaced the EU EHIC for UK residents and provides access to state healthcare in EU countries and Switzerland at the same cost as a local resident. A GHIC is free and covers emergency treatment — but it is not a substitute for travel insurance:
- It doesn’t cover private treatment
- It doesn’t cover repatriation home
- It doesn’t cover cancellation, lost baggage, or other non-medical aspects
- Some countries outside the EU have no GHIC agreement at all
Always have a GHIC and travel insurance for European travel.
What to Do When a Claim Goes Wrong
If your insurer refuses a claim or you believe you’ve been underpaid:
- Request a formal written explanation of the reason for refusal citing the specific policy clause
- Submit a formal written complaint to your insurer (they have 8 weeks to respond)
- Escalate to the Financial Ombudsman Service (FOS) if unsatisfied — free, independent, and binding on the insurer
- FOS website: financial-ombudsman.org.uk
- FOS upholds around 40–45% of travel insurance complaints
Related Guides
- Travel Insurance UK 2026 — Do You Need It and What Does It Cover?
- Budget Planner Guide — managing holiday and leisure spending
- Money Saving Tips — reducing costs across all areas
- Critical Illness Cover Guide — for serious illness that could affect travel plans long-term
- Income Protection Guide — protect your income if you can’t work