Travel insurance: all you need to know
Cancelled flights, lost passports and medical emergencies are less of a hassle when you have good travel insurance. But what policy to choose? Here’s everything you need to know to help avoid unpleasant travel pitfalls.
We’re here to answer the most common travel insurance questions, and to tell you what to look out for. That way, when you book your next trip, you’re fully covered – just in case the unexpected happens.
Every travel insurance policy is different. Before buying, it’s important to check that it covers these key areas:
– Medical cover: At the bare minimum, this should include emergency treatment (including hospital and ambulance fees), returning you home if you can’t use your original ticket, and covering a friend or family member to escort you back to the UK.
– Cancelling or cutting your trip short: This is usually for extenuating circumstances like falling ill, being made reduntant or losing a close family member.
– Travel delays and disruptions: This one’s for circumstances outside your own control. Leaving too late for the airport won’t cut it, but missing your connection because your original flight was delayed probably will.
– Baggage and belongings: If your bags get lost or stolen during transit, or if you lose your passport, you’ll be covered for the cost of replacement. You might need receipts and proof of ownership to make your claim.
Most travel insurance policies will kick in if your transport is delayed for more than 12 hours. If your flight is delayed for more than two hours for short-haul, three hours for medium-haul or four hours for long-haul, the airline you’re booked with has a responsibility to look after you while you’re at the airport. This means providing you with food and drink, accommodation if your flight is moved to the next day and transport to the hotel.
This depends. If you have a valid reason for cancelling your holiday, like a family emergency or you’ve been made redundant, then your insurance should cover the cancellation costs. But if it is for a less urgent reason, say, for instance, you’re no longer sure it’s the right time to travel, you won’t be covered. Most insurance policies cover you for a set amount, usually between £1,000 and £5,000 per person.
It’s best to organise your travel insurance as soon as possible. We recommend booking it on the same day as you book your flights and accommodation. This way, if you do need to cancel, you’ll be covered from the start.
You’ll get the best value for money if you choose the right level of cover. Most travel insurance policies fall under three categories:
– Annual/multi-trip cover: This covers you for lots of short trips throughout the year. It will work out as better value if you go on lots of little holidays, but if you only have one trip planned then there’s no point.
– Single trip cover: You’ll be covered for one holiday. If you travel a lot, buying these single trip policies every time could work out more expensive.
– Backpacker/extended trip cover: This is a niche insurance for single trips that last for a month or more.
When you’re choosing a policy, check which countries are covered. If you’re travelling within Europe, limit your cover to Europe to save money. Bear in mind that worldwide policies that include the US, Canada, Caribbean and Mexico are more expensive because of the cost of medical care there. If you’re not planning to visit North America, exclude them. But if you are, then don’t cut corners: it would cost way more to pay those expenses out of pocket.
This depends on your situation. If one member of your group has a pre-existing condition, it might be cheaper to all book individually. On the other hand, booking together can reduce hassle. If you need to cancel your trip because someone has an emergency, it’s just one claim to deal with instead of multiple claims. If you’re planning a big trip, swot up on our group travel tips.
If you’re resident in the UK, your EHIC will still work across the EU until it expires. After that, you’ll need to apply for a free UK Global Health Insurance Card (GHIC) from the NHS. This will give you access to cheaper, or free, healthcare in the EU. Note that it doesn’t replace travel insurance, as it only covers the bare necessities. We recommend taking out insurance on top of this.
Travel insurance is intended to protect you from unforeseen circumstances. So, your insurer may not pay out if:
– Your claim is linked to a pre-existing condition that you didn’t declare when you applied for your policy
– You knew about the circumstances linked to your claim before you bought the policy, for example if a relative has a long-term illness that then worsens just before you’re due to travel
– The claim is your fault: for example if you missed your 6am flight because you forgot to set an alarm
– You are travelling to a destination that the Foreign, Commonwealth and Development Office (FCDO) recommend against
– Any costs related to airport taxes and passenger duty.
Every policy is different. Read through the exclusions carefully to make sure you have coverage when you need it the most.
This is not included on many travel insurance policies. However, some policies include SAFI (Scheduled Airline Failure Insurance).
Check to see whether your trip is protected by an official protection scheme such as ATOL or ABTA, as you should qualify for compensation for the holiday itself if your flight is cancelled because of airline bankruptcy. And if you’re already on your trip when the supplier failure occurs, don’t worry. ATOL guarantees that you’ll be provided with a return flight.