Travel insurance can feel like another expense to add to the cost of flights, accommodation and spending money, but choosing a policy purely on price can prove expensive if something goes wrong.
The aim should not be to find the cheapest policy available. It should be to avoid paying for cover you do not need while making sure the risks that matter for your trip are properly insured.
Emergency medical treatment, cancellation, lost baggage, travel disruption and repatriation can all create significant costs. A few sensible checks before buying a policy can help you get better value without unnecessarily reducing your protection.
If you are still deciding what type of policy you need, our guide to choosing the right travel insurance provides a useful starting point.
Match the Insurance to Your Actual Trip
The right travel insurance depends on the holiday you are taking.
Before comparing premiums, consider:
- Where you are travelling
- How long you will be away
- How many people are travelling
- Your age
- Existing medical conditions
- The value of the holiday
- What belongings you are taking
- Activities you plan to undertake
- How often you travel during the year
A weekend break in Europe presents a different risk from three weeks touring the USA, a skiing holiday or several overseas trips during the same year.
Buying more cover than you require may waste money, but choosing inadequate limits simply to reduce the premium can leave you exposed.
Compare Single-Trip and Annual Travel Insurance
If you only travel once a year, single-trip insurance may be the simplest option.
If you expect to take several holidays or overseas trips, an annual multi-trip policy may provide better value and save you arranging insurance separately every time.
Do not compare price alone.
Annual policies commonly impose a maximum length for each individual trip, while single-trip policies are arranged around specific travel dates.
Check:
- Maximum trip duration
- Countries or regions covered
- Age restrictions
- Winter sports cover
- Cruise cover
- Business travel
- Activities included
Frequent travellers may also find our plane hacks for frequent flyers useful when preparing for future trips.
Consider Couple, Family or Group Cover
When several people are travelling together, one policy may sometimes be more economical than arranging separate insurance for everybody.
Options can include:
- Individual cover
- Couple cover
- Family policies
- Group travel insurance
Do not assume a combined policy is automatically cheaper.
Compare the total premium, excesses, medical requirements and individual cover limits before deciding.
If one traveller has more complex medical requirements, it may sometimes make sense to compare a separate specialist policy for that person against including everyone under the same arrangement.
Declare Pre-Existing Medical Conditions
Trying to reduce the premium by leaving out a medical condition is a false economy.
Insurers may ask about:
- Existing medical conditions
- Prescription medication
- Previous treatment
- Recent hospital appointments
- Ongoing investigations
- Planned procedures
Answer the insurer’s questions fully and accurately.
If circumstances change between buying the policy and travelling, check whether the insurer needs to be informed.
A cheaper policy is of little value if a medical claim is later affected because important information was not disclosed when requested.
Buy Travel Insurance at the Right Time
Do not think of travel insurance as something that only matters once you arrive at the airport.
Cancellation cover can be one of the most valuable parts of a policy.
If an insured event prevents you from travelling before departure, appropriate cover may help recover eligible prepaid costs that cannot be refunded elsewhere.
This means it is worth considering insurance when you book a significant holiday rather than leaving it until immediately before you travel.
Always check when cancellation protection begins under the policy you are considering.
Make Sure Your Cancellation Limit Is High Enough
Look at what you have actually paid for the holiday.
Include relevant prepaid costs such as:
- Flights
- Accommodation
- Package holidays
- Tours
- Excursions
- Transfers
- Other non-refundable bookings
If your holiday has cost £5,000, a policy with a cancellation limit substantially below that amount may not provide the protection you expect.
Check whether limits apply per person, per booking or in another way.
Understand the Travel Insurance Excess
An excess is the amount you may have to contribute towards an accepted claim.
Choosing a larger voluntary excess can sometimes reduce the premium, but do not automatically select the highest excess available.
Consider whether the saving is worth the amount you would have to pay if you claimed.
It is also important to understand how the excess operates.
Depending on the policy, an excess can apply:
- Per person
- Per claim
- Per policy section
- To different types of claim at different amounts
A policy that appears considerably cheaper may become less attractive when the excess is taken into account.
Check Your Baggage and Personal Belongings Limits
Do not look only at the headline baggage limit.
Travel policies can also have a maximum amount payable for individual items.
This can be particularly important if you travel with:
- Smartphones
- Tablets
- Laptops
- Cameras
- Jewellery
- Watches
- Sports equipment
A £2,000 total baggage limit does not necessarily mean a £1,500 item is insured for its full value.
Check the single-item limit and any separate limits applying to valuables.
You should also check whether valuable belongings are already insured away from home under another policy to avoid paying unnecessarily for overlapping cover.
Do Not Rely on a GHIC Instead of Travel Insurance
Eligible UK residents can apply for a UK Global Health Insurance Card, or GHIC, free of charge.
A valid GHIC can provide access to medically necessary state-provided healthcare in participating countries on broadly the same basis as people insured in that country.
However, a GHIC is not a substitute for Travel Insurance.
It does not provide the same protection as a travel insurance policy and does not cover important costs such as private medical treatment or medical repatriation back to the UK.
An existing UK-issued EHIC may also remain valid until its expiry date where applicable.
If you are taking a UK break rather than travelling overseas, our guide to travel insurance for UK holidays explains why insurance can still be relevant even when NHS healthcare is available.
Check FCDO Travel Advice Before You Go
Check current Foreign, Commonwealth & Development Office travel advice for your destination before departure.
This information can cover:
- Entry requirements
- Safety and security
- Health risks
- Local laws
- Natural disasters
- Terrorism
- Regional travel restrictions
Insurance can be affected if you travel to a destination against official advice.
Always check the wording of your individual policy and the latest advice for the country or region you intend to visit.
Make Sure Your Holiday Activities Are Covered
Standard travel insurance does not automatically cover every activity you might try while away.
Depending on the policy, additional or specialist cover may be required for activities such as:
- Skiing
- Snowboarding
- Scuba diving
- Jet skiing
- Quad biking
- Mountain activities
- Adventure sports
- Certain water sports
Do not wait until after an accident to discover that an activity was excluded.
Check your plans before buying the policy.
Some policies include a wide range of recreational activities as standard, while others require an additional premium.
If you are arranging a winter sports holiday, check equipment, piste closure, mountain rescue and activity conditions as well as medical cover.
Check Whether You Need Cruise Cover
Cruises can introduce risks that are different from a conventional hotel holiday.
Some policies require specific cruise cover or an additional extension.
Depending on the insurer, specialist cruise protection may include areas such as:
- Missed port departure
- Cabin confinement
- Itinerary changes
- Unused excursions
- Emergency medical treatment at sea
Check your cruise operator’s insurance requirements as well as your own policy.
Think Carefully About Worldwide Cover
Worldwide travel insurance can cost more than European cover.
If you only intend to travel within Europe during the policy period, paying for wider geographical protection may be unnecessary.
At the same time, definitions of Europe and worldwide regions vary between insurers.
Countries such as the USA, Canada and destinations in the Caribbean may be treated differently because of the potentially high cost of medical treatment.
Always check that every country you plan to visit is included, including destinations visited briefly during a cruise or connecting journey where relevant.
Do Not Choose Medical Cover on Price Alone
Emergency medical treatment can be one of the largest financial risks when travelling abroad.
A serious illness or accident may involve:
- Hospital treatment
- Surgery
- Ambulance costs
- Specialist medical care
- Additional accommodation
- Changed flights
- Medical evacuation
- Repatriation to the UK
Check both the medical expenses limit and the circumstances in which cover applies.
The cheapest policy is not necessarily the best value if important medical benefits are restricted.
Check the Alcohol Exclusions
Holidaymakers sometimes assume they are automatically uninsured if they have consumed any alcohol.
Policy wording is generally more nuanced than that.
Insurers can exclude claims where alcohol or drugs materially contributed to an incident or where a person acted recklessly.
The wording varies between policies, so read the relevant exclusions rather than relying on general assumptions about what is or is not covered.
Check Driving and Vehicle Activities Abroad
Travel insurance should not be confused with motor insurance.
If you intend to hire a car, scooter, motorbike or other vehicle abroad, check:
- Licence requirements
- Local laws
- Hire company insurance
- Excesses
- Vehicle restrictions
- Helmet or safety requirements
- Your travel insurance exclusions
Certain activities involving mopeds, motorbikes, quad bikes or other vehicles may be restricted or excluded unless specific conditions are met.
Check Your Policy Before Leaving Home
A few minutes spent reading your policy before departure can prevent confusion later.
Make sure you know:
- Your policy number
- Emergency assistance telephone number
- Medical claim procedure
- Cancellation limits
- Baggage limits
- Excesses
- Activities covered
- Important exclusions
- How to report a claim
Keep the information somewhere you can access if your phone is lost or unavailable.
It can also be helpful to leave your policy information with someone you trust at home.
Keep Evidence if Something Goes Wrong
If you need to make a claim, insurers may require evidence.
Depending on the circumstances, keep:
- Receipts
- Booking confirmations
- Medical reports
- Police reports
- Property irregularity reports for baggage
- Photographs
- Proof of ownership
- Airline correspondence
- Cancellation notices
- Evidence of additional expenses
Contact the insurer as soon as reasonably possible, particularly if you need emergency medical treatment.
Do not assume every expense will automatically be reimbursed.
Is Cheap Travel Insurance Worth It?
It can be.
A lower-priced policy may provide perfectly suitable protection if it matches your trip and circumstances.
The problem arises when price becomes the only consideration.
Before choosing a policy, compare:
- Medical expenses
- Repatriation
- Cancellation
- Curtailment
- Baggage
- Single-item limits
- Travel disruption
- Personal liability
- Excesses
- Activities
- Destination
- Maximum trip length
- Medical conditions
- Exclusions
A £10 saving on a premium is insignificant if it means losing hundreds or thousands of pounds of protection you genuinely need.
How to Save on Travel Insurance Without Reducing Protection
The most effective savings usually come from buying more intelligently rather than stripping useful cover from the policy.
Before purchasing:
- Compare single-trip and annual policies.
- Check whether couple, family or group cover is better value.
- Avoid paying for worldwide cover when you do not need it.
- Choose an excess you could comfortably afford.
- Check for cover already provided elsewhere.
- Declare medical conditions accurately.
- Insure the full value of the holiday.
- Check the activities you intend to undertake.
- Compare benefits and exclusions as well as premiums.
- Review the policy before paying.
The right travel insurance is not necessarily the cheapest or the most expensive.
It is the policy that provides suitable protection for your destination, health, activities, belongings and travel plans at a price that represents good value.
Getting those details right before you travel means you can spend less time worrying about what might go wrong and more time enjoying your trip.
