Travel Insurance: What You Actually Need

Travel insurance is the classic thing people buy at the last minute, as cheaply as possible, without reading it. That combination is exactly how claims get refused.

This is general information, not personal financial advice.

Buy it when you book

The most common and most expensive mistake. Travel insurance covers cancellation from the moment you buy it. If you fall ill, are made redundant, or a close relative dies before you travel, cancellation cover is what protects your deposit and fares.

Buy it the week before you fly and you have thrown away most of that value. Buy it the day you book and you are covered for the whole run-up.

Single trip or annual

If you take more than one trip a year — including short breaks and trips within the UK where you have paid for accommodation — an annual multi-trip policy is usually cheaper than buying separately.

Check the annual policy’s limits: a maximum trip length (often around 31 days), and sometimes a cap on the number of trips. Also check whether it covers the regions you travel to. “Europe” definitions vary, and some include specific non-European destinations.

Declare pre-existing medical conditions

This is where most refused claims originate, and it is entirely avoidable.

You must declare any pre-existing condition the insurer asks about — typically anything diagnosed, treated, medicated or investigated within a stated period, and often anything you are awaiting results or treatment for. That includes conditions that feel routine to you: high blood pressure, asthma, a controlled thyroid condition.

Failing to declare can void the whole policy, not just the claim relating to that condition. If your policy is void and you need hospital treatment abroad, the bill is yours.

If a condition makes cover expensive or difficult, the FCA requires firms to signpost you to specialist providers who can help. A directory of these exists — ask, rather than going uninsured.

What to check in the policy

• Medical cover limit and whether repatriation is included. This is the part that genuinely matters — overseas medical costs are the reason to have insurance at all.
• Cancellation limit — it should cover what your trip actually cost, including flights, accommodation and any excursions booked.
• The excess, and whether it applies per person per section. A cheap policy with a high excess may pay nothing on a small claim.
• Baggage and valuables limits, including the single-item limit. Expensive cameras, laptops and jewellery often need specifying, or may be better covered on home contents.
• Activities. Winter sports, scuba diving, hiking above certain altitudes, motorcycling and even some organised excursions are commonly excluded without an add-on.
• Alcohol clauses. Most policies exclude claims arising from excessive drinking, and insurers do apply this.
• Travel disruption — delay, missed departure, and whether airline or operator failure is covered.
• Age limits, which catch out older travellers on some cheaper policies.

Get a GHIC as well

The Global Health Insurance Card gives access to state-provided healthcare in the EU on the same basis as a local resident. It is free from the NHS website — never pay a third-party site that charges to apply on your behalf.

A GHIC is not a substitute for insurance. It does not cover repatriation, private treatment, or your trip costs. Carry both.

Check what you already have

Before buying, check whether you are already covered:

• Packaged bank accounts frequently include travel insurance. Check the age limits, trip length, destinations and whether it covers your medical conditions — the included cover is often more limited than a standalone policy.
• Some credit cards include cover, sometimes only if the trip was paid for on the card.
• Employer benefits, particularly for those who travel for work.

If you are paying a monthly fee for an account largely for its insurance, check the cover is genuinely suitable — otherwise you may be paying for something you cannot use.

Cutting the cost sensibly

• Compare on more than one site, and check insurers that do not appear on comparison sites.
• Route the purchase through a cashback site — insurance cashback is often substantial.
• Consider a higher excess only if you could genuinely pay it.
• Do not under-declare the trip cost to lower the premium; the cancellation limit is what you would claim.

If you need to claim

Tell the insurer as soon as possible, keep every receipt, and get written evidence — a medical report, a police report for theft (usually required within 24 hours), or written confirmation of a delay from the airline. Claims are won on documentation.

If a claim is unfairly refused, complain to the insurer and then escalate free to the Financial Ombudsman Service.