If you’ve booked a holiday but not got travel insurance yet, DO IT NOW, DON’T DELAY. Half travel insurance’s value is protecting you BEFORE traveling if something happens and stops you from going, as well as covering you on holiday (though Unfortunately no policy covers every scenario). Find out what to watch out for, then use our cheap travel insurance finder tool.
What is travel insurance?
The aim of travel insurance is to cover the cost of the unforeseen, such as illness and injury or theft of your stuff while you’re away.
It’s also designed to cover you if you have to cancel your trip before you go, or if you need to return early due to an emergency.
However, it’s not designed to cover every eventuality or every loss or inconvenience that you experience while on holiday. Read this guide carefully so you know what is (and isn’t) covered.
What does travel insurance cover?
Not all travel insurance is created equally, but you should expect an insurer to pay out for most of the below.
However, the exact level of cover will vary by policy – so always check the terms carefully before you buy.
Good travel insurance should cover you for…
| Reason | Typical examples |
| Cancellation as you can’t travel | If you’re made redundant, have to do jury service, fall seriously ill, test positive for Covid, suffer a bereavement or have a home emergency such as a fire, flood or break-in. |
| Medical costs while abroad | If you fall ill overseas, including Covid, and require treatment – plus any travel costs if you need to be brought back to the UK for it. Though ALWAYS tell your insurer about any pre-existing medical conditions, or you won’t be covered . |
| Cutting your trip short (curtailment) | If an emergency happens that requires you to travel home early, such as death of a close relative. |
| Baggage and personal belongings | If any of your stuff is lost, stolen or damaged while you’re away. Though there are often limits on the amounts they’ll pay out. You may also have cover for this under personal belongings on your home contents policy. |
| Sports, excursions and other activities | If you can’t make use of your booked activities, though some policies only cover this if the provider went bust. |
| personal liability | If you accidentally hurt someone or damaged their property, such as spilling a drink and staining an expensive upholstered chair. |
| You catch Covid | You’re generally covered if you test positive for coronavirus before your trip or while on it. |
What types of travel insurance can you buy?
There are several different types of insurance, they mostly differ in terms of the length of the policy, who’s covered by it, and where you’re covered. For example, you can choose between:
- Single-trip travel insurance. This covers you from the point you buy insurance to the day you come home from the specific trip you’re insured for.
- Annual multi-trip travel insurance. This covers all trips taken during the period the policy covers.
You can also get travel insurance to cover different people:
- Family travel insurance. Generally covers parents, and children who live with them.
- Couples’ travel insurance. Covers the two named policyholders.
- Individual travel insurance. Just covers the person named on the policy.
And your final decision is where you want the travel insurance to cover.
- European travel insurance. Does as it says, but insurers’ definitions of ‘Europe’ vary, so do check
- Worldwide travel insurance. You’ll often have to choose to include or exclude North America from the policy (medical costs are often high in the USA, so you may pay extra for cover if you’re traveling there.
Book flexible and pay on plastic for extra protection
Travel insurance provides valuable last-resort protection, but it’s best used in combination with other ways of minimizing the risk of losing money on a trip…
- Book easily cancellable or flexible flights and accommodation. Hedge towards offers with no/low deposits or those that give refunds or let you rebook for free if you find you can’t go.
- Pay on plastic. Credit cards offer strong protection, as Section 75 refund rules mean for items costing more than $100, the card provider is jointly liable with the seller – though note that bookings via travel agents may not be covered as it usually only covers payments made directly to the travel provider.
Debit cards also have some protection under the chargeback refund rules (but these aren’t legal requirements and firms sometimes challenge them).
Yet for both schemes, you’ll only be covered if the service wasn’t provided, for example if the flight was cancelled or the accommodation was shut. These card schemes won’t cover you if you weren’t able to, or didn’t want to, go on your trip. - Package holidays can offer greater protection. If an airline or accommodation provider cancels, you’re entitled to a refund. But if the trip or flight is still going ahead but you can no longer travel, such as a new travel warning from the Foreign Office banning all but essential travel, then you have few or no rights.
However, most package holiday providers won’t operate holidays to countries where a travel restriction has been put in place, so they are more likely to cancel the trip anyway.
How to claim on your travel insurance?
Claiming on your travel insurance shouldn’t be daunting and – if you understand the terms and the excesses on your policy – you shouldn’t be in for any nasty shocks. Follow the five steps below if you do need to make a claim.
- Submit your claim as soon as possible. Contact your insurer as soon as you can. Some parts of your policy may have a short window to submit a claim and it may take a while to be processed.
- Get your insurer to accept a medical claim before you get treatment. If you need to make a medical claim – and it’s not an emergency – get your insurer to accept the claim over the phone first, before getting treatment. For example, if you sprained your ankle, call your insurer – if it accepts the claim then, you’re less likely to be faced with a rejected claim later down the line. For obvious reasons, don’t delay treatment if it’s an emergency.
- Notify the police if it’s a theft or loss. If something goes missing or is stolen when you are abroad you may need to get a crime reference number or the overseas equivalent to make a successful claim. Report the incident to the police as soon as you can – you often have to do so within 24 hours – to make sure your claim doesn’t hit the skids.
- Keep receipts. If you are claiming for lost luggage or delay, remember to keep receipts of essential items you have bought while waiting, such as food and drink. Many insurers allow you to add these expenses to a claim and may ask for receipts as proof.
- Complain if you feel your claim was unfairly rejected. If your insurance company rejects your claim, and you think it has done so wrongly, don’t take it lying down. Complain to the free Financial Ombudsman. This independent adjudicator will make the final decision on a claim if you are locked in a dispute with your insurer. For more on how to make a complaint, read our Financial rights guide, or see our section below.
How to complain about your insurance provider?
The insurance industry doesn’t have the best customer-service reputation and while a provider may be good for some, it can be hell for others.
Common problems include claims not being paid out on time or at all, unfair charges, or exclusions being hidden in small print. It’s always worth trying to call your provider first,
What is an excess and how does it work?
An excess is the amount you have to pay towards any claim you make. For example, if you cancel a trip and are entitled to $3,000 back from your insurer but have a $100 excess, you will only receive $2,900.However, the excess amount, and if it applies per section, and if it applies per traveller, does vary from insurer to insurer.For instance, most providers will likely expect you to pay an excess per person. So if the policy was for a couple, and the flight was canceled – do expect to pay an excess per person.
It is also worth knowing that an excess per section could also apply. An example could be if your suitcase was nicked and your wallet was inside you could have to pay an excess on both.If you have a group policy you may also have to pay an excess for each person for any loss that impacts your entire party, such as cancellation. It’s important to check all excesses so you know exactly what you will have to pay if you make a claim.
Hence why it is always important to check the policy cover so you know what you are getting.