What is travel insurance?
Travel insurance covers emergency medical treatment abroad, repatriation, cancellation, delay, lost baggage and personal liability while you are away.
Medical costs are the reason it exists. An air ambulance from Spain to the UK can cost £20,000 or more, and from the US considerably higher.
How cover and claims work
Cancellation cover starts the day you buy the policy, which is why buying at the time of booking matters more than buying before you fly.
Medical claims are handled by a 24-hour assistance line. Call them before treatment where you can, because prior authorisation is often a condition of cover.
Worked example
A family of four booking a £4,200 Greek holiday in January for August travel pays £45-£80 for a single trip policy covering the full deposit from day one.
Buying the same policy at the airport would leave seven months of cancellation risk uninsured.
Types of travel insurance
Single trip
Covers one journey with fixed dates. Cheapest if you travel once or twice a year.
Annual multi-trip
Unlimited trips within 12 months, each capped at a maximum duration, usually 17 to 31 days.
Backpacker and long stay
Trips of three to 18 months with cover for casual work in some policies.
Winter sports and activity
An extension for skiing, diving and adventure sports that standard policies exclude.
Which policy suits your travel pattern
Two or more trips a year usually tips the maths towards annual cover.
- 1
One holiday a year
Single trip, bought at the point of booking.
- 2
Two or more trips
Annual multi-trip is normally cheaper from the second trip onwards.
- 3
Business travellers
Annual cover with a business extension for equipment and client liability.
- 4
Cruise passengers
A cruise extension covering missed ports and cabin confinement.
Medical declarations and eligibility
Declare everything. This is where most refused claims begin.
Pre-existing conditions: Anything diagnosed, treated or medicated in the last two to five years must be declared.
Age limits: Standard policies often stop at 70 or 75; specialist insurers cover older travellers.
Pregnancy: Usually covered to around 32 weeks for single pregnancies, but check the exact week.
Destination: Cover is void if you travel against FCDO advice.
How to compare travel insurance
Check the limits that would actually matter to you.
- 1
Medical limit
£5m is the sensible minimum for Europe and £10m for the US.
- 2
Cancellation limit
It must cover the full non-refundable cost of the trip, not a nominal amount.
- 3
Excess per section
Some insurers charge an excess per person per section, which multiplies quickly.
- 4
Gadget cover
Phones and laptops are frequently excluded or capped very low.
Annual cover: pros and cons
Pros
- Cheaper from the second trip onwards
- One medical declaration for the year
- Cover is already in place for last-minute bookings
- Usually includes UK trips with paid accommodation
Cons
- Maximum trip length is capped
- Winter sports often costs extra
- You pay for a full year even if plans change
Why a GHIC is not enough
A UK Global Health Insurance Card gives access to state healthcare in the EU on the same terms as a local resident. It does not cover private clinics, repatriation, or a cancelled trip.
Many resort medical centres are private, so a GHIC alone leaves you paying full price in exactly the places tourists get treated.
Common reasons travel claims fail
Undeclared medical conditions, including conditions the traveller considered resolved.
Alcohol-related incidents, unattended baggage and activities outside the policy's listed sports are all standard exclusions.
Other sources of cover
Check what you may already hold before buying.
Packaged bank accounts
Many fee-paying accounts include annual travel cover, though age limits and medical terms are often restrictive.
Credit card protection
Section 75 can recover money for a failed supplier, but it is not travel insurance.
Employer schemes
Business travel policies sometimes extend to leisure days added to a work trip.
FAQs
About this guide
Written and reviewed by the Grow Your Business team, and kept up to date as rates, rules and provider terms change.
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