Travel Insurance Explained: What to Cover and Check

What travel insurance usually covers

• Emergency medical treatment and repatriation if you need to be flown home
• Cancellation or curtailment, if you have to cancel or cut short a trip for a covered reason, such as illness or bereavement
• Delays and missed departures
• Lost, stolen or damaged baggage and belongings
• Personal liability if you injure someone or damage property
• Personal accident
• Legal expenses
• Lost passport and travel documents

Types of policy

• Single trip: covers one trip, with dates fixed. Best if you travel once a year or less.
• Annual multi-trip: covers multiple trips in a year, often with a maximum length for each trip. It can be better value for frequent travellers.
• Backpacker or long-stay: for extended trips.
• Winter sports or adventure cover: for skiing, snowboarding and some activities not included as standard.
• Cruise cover: covers matters specific to cruises such as missed ports.
• Worldwide or Europe only: the destination affects the price, especially for the USA, Canada and the Caribbean where medical bills can be higher.

Health conditions: declare them

If you have a pre-existing medical condition, you must tell your insurer. This includes conditions you are being treated for and those that have been diagnosed in the past, as defined by the policy. If you do not declare it, the insurer can refuse a claim related to it, or refuse to pay at all. Declaring it may increase the premiumPremiumA premium is the amount you pay for an insurance policy, either as a lump sum or in instalments.Read more →, but it protects your cover.

If you have difficulty getting cover, the MoneyHelper Travel Insurance Directory lists insurers that offer cover for people with serious medical conditions. It is a free service.

GHIC and EHIC

A UK Global Health Insurance Card (GHIC) gives you access to state-provided medical treatment in the EU and some other countries, on the same basis as local residents. An existing European Health Insurance Card (EHIC) remains valid until its expiry date. Both are free, and you should apply through the NHS website only, since scam sites charge fees. They do not replace travel insurance. They do not cover private healthcare, repatriation, cancellation or lost property, and they do not apply in many popular destinations such as the USA. Check the details on the NHS website.

What to check before you buy

1. Medical cover limit: commonly millions of pounds for worldwide, especially for the USA.
2. Excess: the amount you pay on each claim.
3. Cancellation limit: make sure it covers the cost of the trip.
4. Pre-existing conditions: are they covered, and at what cost?
5. Activities: are the sports or activities you plan to do included?
6. Age limits: some policies restrict cover for older travellers.
7. Exclusions: such as alcohol-related incidents, unattended belongings or travel against government advice.
8. Gadgets and valuables: sub-limits can be low.
9. Cover for disruption: what happens if the airline or tour operator fails? Some travel is protected by ATOL or other schemes.
10. Insurer authorisation: check the firm is authorised by the Financial Conduct Authority.

When to buy

Buy as soon as you book your trip, so you are covered for cancellation from the start. If you wait until just before travelling, you are not covered for events before you bought the policy.

Other sources of cover

• Bank account packages and credit cards sometimes include travel insurance. Check the conditions, such as age limits, trip lengths and medical conditions, and whether you need to use the card to pay for the trip.
• Section 75 of the Consumer Credit Act may help if you pay for flights or holidays between £100 and £30,000 on a credit cardHow Credit Cards Work in the UKHow UK credit cards work: interest, APR, minimum payments, interest-free periods, fees, Section 75 protection and how to use a card without getting into debt.Read more →. See how credit cards work.
• Home contents insurance may cover belongings abroad, but check whether it is an add-on.
• Employer or other schemes

Common reasons claims are refused

• Not declaring a medical condition
• Not following the policy conditions, such as reporting a theft to the police within a set time
• Leaving items unattended
• Cancelling for a reason not covered, such as changing your mind
• Travelling against Foreign, Commonwealth and Development Office (FCDO) advice
• Drinking heavily before an incident

If something goes wrong

1. Medical emergency: call the insurer's emergency assistance line before treatment if you can. Keep all receipts and medical reports.
2. Theft or loss: report it to the local police and get a written report.
3. Cancellation or delay: keep documents from the airline or travel provider.
4. Contact the insurer as soon as possible, and follow the claims process. See how to make an insurance claim.

Saving money

• Compare quotes from several providers
• Consider an annual policy if you take more than one trip
• Raise the excessHome Insurance Explained: Buildings and Contents CoverHow UK home insurance works: buildings versus contents cover, rebuild cost, excess, common exclusions, Flood Re, how to compare policies and how to claim.Read more → if you can afford it
• Don't pay for cover you already have, but check the details
• Only add extras you need

Older travellers and long trips

Some insurers set age limits or charge more for older travellers, and cover for long trips or for people who spend part of the year abroad can differ from standard policies. Check the maximum trip length on annual policies, and ask whether you are covered if your trip is extended for reasons outside your control.