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Our picks of the best holiday cancellation insurance
Below is our round up (October2023) of the top five holiday cancellation policies offered by our panel of travel insurance providers. It’s based on the level of cancellation cover provided, as well as premium cost and excess – the set amount the policyholder/s must pay towards any claim. For more information on how the providers are ranked, refer to our methodology.
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Puffin Gold Medical Single Trip
5.0
Our ratings take into account a product's rewards, fees, rates and other category-specific attributes. All ratings are determined solely by our editorial team.
Price
£37.55
Change in FCDO advice
Yes
Stolen passport
Yes
Get A Quote
Price
£37.55
Change in FCDO advice
Yes
Stolen passport
Yes
Why We Picked It
This policy may be priced on the higher side out of the cheaper policies available, but it levies a relatively low excess and provides the most comprehensive cover out of all the policies listed.
Unusually, this policy pays out for trip cancellation if public transport is cancelled or delayed, or the policyholder is denied boarding as there are already too many passengers for the number of seats, and no suitable alternative public transport has been organised within 12 hours of departure.
It also pays out if the policyholder’s passport is lost or stolen within 72 hours of departure, or if they or a travel companion works as a senior governmental employee, medical professional, a member of the armed forces or emergency services and has had leave withdrawn.
Claims due to pregnancy complications or the injury/death of the policyholder, a travel companion, close relative or colleague are also accepted, as well as claims due to the policyholder or a travel companion being made redundant or needing to quarantine or attend court as a juror or witness.
Claims resulting from the FCDO, or the authorities at the destination the policyholder is travelling to, advising against all or all but essential travel to the location, will only be accepted if the advice came into force after booking the holiday or taking out this policy (whichever came later) and within 21 days of the planned departure date. Also, the advice must not relate to a pandemic or regional quarantine.
This policy costs £37 and a few pence with an excess of £75 per person to pay on each claim, unless a maximum of two policyholders claim for the same incident. In this case only one excess will apply.
Pros & Cons
- £3,000 cancellation cover
- £5,000 ‘scheduled airline’ failure cover
- £1,000 gadget cover as standard
- £75 excess
- No excess waiver
- No ‘end supplier’ failure cover
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Post Office Extra
5.0
Our ratings take into account a product's rewards, fees, rates and other category-specific attributes. All ratings are determined solely by our editorial team.
Price
£30.79
Change in FCDO advice
Yes
Stolen passport
No
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Price
£30.79
Change in FCDO advice
Yes
Stolen passport
No
Why We Picked It
This policy pays out if illness, injury or death of the policyholder, a travel companion, someone they were due to stay with or an immediate family member of the policyholder/ a travel companion prevents the trip from going ahead.
Similarly, the policyholder is also covered if they, or a travel companion, cannot travel due to an underlying health condition or pregnancy. They can also claim if they, or a travel companion, falls pregnant after booking the holiday or travel insurance, whichever comes later. No longer being able to participate in a pre-paid activity that is a key part of the trip, due to a medical issue, is another accepted reason for claiming.
Cover remains valid if the policyholder’s claim is due to unexpected jury service commitments, involuntary redundancy or if they are a member of the armed forces, police, fire brigade or are a certified medical professional and have unexpected work commitments.
Cover also extends to emergencies where the policyholder’s home is damaged within seven days of their departure date, and they are required to stay in the country by the authorities, where their travel documents are stolen.
If the FCDO advises against all or all but essential travel to the planned destination, this policy will pay out, as long as the advice was issued up to seven days before the planned departure and it’s not related to Covid-19.
There’s a premium of just under £31 to pay for this policy, and £125 per person is levied in excess on each eligible claim, unless the excess is waived by paying an extra premium.
Pros & Cons
- Excess waiver available
- £125 excess
- Gadget cover costs extra
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Admiral Gold
4.5
Our ratings take into account a product's rewards, fees, rates and other category-specific attributes. All ratings are determined solely by our editorial team.
Price
£35.49
Change in FCDO advice
Yes
Stolen passport
Yes
Get A Quote
Price
£35.49
Change in FCDO advice
Yes
Stolen passport
Yes
Why We Picked It
For little more than £35, this policy will pay out if the policyholder’s passport or visa is stolen within a week of their planned departure, and they can’t get a replacement in time for their holiday. It also covers cancellation, if the policyholder’s home has been burgled or damaged and they need to stay in the country.
Policyholders can also claim if the FCDO advises against all or all but essential travel to their destination after they booked their trip, or the insurance policy, whichever is later.
This policy covers cancellation due to redundancy, where the policyholder has worked continuously for at least two years, and where the policyholder or a travel companion are a member of the army or emergency services and their leave is cancelled, meaning they will have to work instead of travel.
It also pays out if the policyholder, a travel companion or the person they were planning to stay with, is called for jury service, and if the policyholder, a travel companion, the person they were going to stay with, a close relative or business associate experiences illness, injury, pregnancy complications or dies.
An excess of £99 per person is levied on each claim but this can be waived by paying an extra premium.
Pros & Cons
- £3,000 cancellation cover
- Excess waiver available
- £99 excess
- No ‘scheduled airline’ failure cover
- Gadget cover costs extra
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Coverwise Select Silver Plus
4.5
Our ratings take into account a product's rewards, fees, rates and other category-specific attributes. All ratings are determined solely by our editorial team.
Price
£32.14
Change in FCDO advice
Yes
Stolen passport
No
Get A Quote
Price
£32.14
Change in FCDO advice
Yes
Stolen passport
No
Why We Picked It
On this policy for just over £32, a relatively low excess of £50 per person is levied on each eligible claim. Cancellation claims due to needing to quarantine abroad will be considered, if this requirement is not related to a pandemic.
While the policyholder can claim if the FCDO advises against all, or all but essential travel to their destination, the FCDO must have issued the advice after they booked their holiday or purchased the policy, whichever is later, and within 21 days of their planned departure. Also, the advice must not relate to a regional quarantine or a pandemic.
This policy covers the policyholder if they, a travel companion, a person they arranged to stay with, a close relative or business associate experiences illness, injury, pregnancy complications or death.
It also covers them if either they or a travel companion need to attend court for jury service or as a witness, are a member of the army, or the emergency services and are now required to work, or if either have been made redundant. Policyholders can also claim if the police or other authorities have requested that they stay in the country due to serious damage done to their home.
Pros & Cons
- £50 excess only
- £500 loss passport cover
- £50,000 legal expenses cover
- No ‘scheduled airline’ failure cover
- Gadget cover costs extra
- No excess waiver
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Cedar Tree Premium Plus Single Trip
4.0
Our ratings take into account a product's rewards, fees, rates and other category-specific attributes. All ratings are determined solely by our editorial team.
Price
£37.50
Change in FCDO advice
Yes
Stolen passport
No
Get A Quote
Price
£37.50
Change in FCDO advice
Yes
Stolen passport
No
Why We Picked It
In exchange for the £37.50 price tag, there’s up to £5,000 in cancellation cover on this policy, and a relatively low excess of £50 per person on each claim. Should the policyholder prefer to pay an extra premium, an excess waiver is also available.
In addition to injury, illness or the death of the policyholder, a close relative, business associate or person they were due to stay with, acceptable reasons to claim include the policyholder or a travel companion quarantining.
This policy also pays out if the policyholder or a travel companion has been made redundant, are a member of the armed forces, emergency services or governmental department and cannot travel due to work commitments or if the home of the policyholder or travel companion has been damaged, and the authorities require them to stay there.
Cover extends to the FCDO advising against all or all but essential travel to the planned destination as long as the advice was issued within 21 days of the planned departure date, but not where it relates to a pandemic.
Pros & Cons
- £50 excess only
- No end supplier failure cover
Methodology
Using our travel insurance comparison tool, we ran quotes for a family: two adults aged 42 and 38 and children aged 12 and 14, travelling to Spain for a week. We assumed they had no pre-existing medical conditions.
We took the 10 cheapest quotes for policies with at least £2,000 in cancellation cover, £2 million in medical cover and £1,500 in cancellation cover. All policies include cancellation cover for:
- covid-related risks
- illness, injury and pregnancy complications
- being made redundant
- unexpected work commitments, if a member of the armed forces or emergency services.
We scored the policies on a scale of one to five on price, excess and whether an excess waiver is available. We awarded an additional five points if cancellation cover for the following is included:
- becoming pregnant
- home damage
- loss of passport
- a change in FCDO advice (due to, for example, a natural disaster or military coup)
- each additional scenario covered.
We then totalled the scores for each policy and awarded them Forbes Advisor star ratings.
What is holiday cancellation insurance?
Holiday cancellation insurance is one of the key benefits offered by travel insurance policies. It’s designed to cover losses incurred in cancelling a trip due to an emergency such as the policyholder losing their passport.
However, a cancellation claim can only be made if travel insurance is already in place. That’s why it’s always a good idea to buy cover as soon as a trip is booked – just in case something unexpected happens before the planned departure date.
What does holiday cancellation insurance cover?
Cancellation insurance can cover expenses such as unused accommodation, flights, car hire, and even pre-booked excursions, but the level of protection offered varies between providers and policies. The amount of cover available, both overall and for individual aspects of a trip, will depend on the limits set in the travel insurance policy.
It’s worth noting that circ*mstances which prevent a holiday from going ahead must also be unforeseen events. Some examples include:
- Accident or illness
- Redundancy
- The death of a loved one
- A last-minute incident at home, such as a fire
- A natural disaster, such as an earthquake
- A sudden event, such as a military coup
Policies will also include cover for emergency medical costs and lost or stolen baggage.
What else can holiday cancellation insurance cover?
Often holiday cancellation insurance can cover a combination of the following:
Travel delay: offering an inconvenience benefit up to a pre-specified amount if a booked outward or return journey is delayed for a set period of time (typically 12 hours) after checking in
Missed departure: covering the cost of additional accommodation and travel should an emergency cause the policyholder to miss their departure journey
Loss of passport: helping cover the cost of replacing a passport and travel documentation, if they are lost or stolen
Personal money: the amount claimable if money is lost or stolen
Personal accident: covering an accident resulting in personal injury or death
Gadget cover: paying out if items such as a laptop or mobile are lost or stolen
Scheduled airline failure insurance (SAFI): reimbursing the cost of flights if the airline should go bust
End supplier failure cover: paying out in the event a hotel, travel company or airline goes into administration
Personal liability: covering compensation claims made against the policyholder, including legal costs, if they’re found responsible for causing injury, death or damage
Legal expenses: covering legal costs to pursue compensation or damages following personal injury or other disputed loss while abroad.
Does holiday cancellation insurance cover Covid?
Covid travel restrictions are now behind us and Covid will be treated like any illness should it prevent you from going on your planned trip.
This means that policyholders can make a cancellation claim if they, or someone travelling with them, falls ill with Covid and become unable to travel. They may also be able to claim if a close relative – or in some cases a business colleague – falls ill with the virus and cannot travel as a result.
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Does holiday cancellation insurance cover an airline going bust?
No, if an airline folds and a customer can no longer take their planned outward flight, return journey, or both, their policy may only cover expenses lost, if it includes what’s called ‘scheduled airline failure’ cover (SAFI).
According to analyst Defaqto, only one in three insurance policies include this type of cover, so checking a policy’s details for SAFI before purchasing is vital, if it is a key requirement. If a ticket was purchased through an airline ticket agent, it may have provided travel insurance that includes SAFI.
Bear in mind, an insurer will first expect the policyholder to try to recoup losses from the company with which they booked the flight. This could be the airline or a third party.
Travellers who used a credit card to pay for flights costing over £100, in full or in part, can request a refund from their card issuer, thanks to Section 75 of the Consumer Credit Act (1974). Those who used a debit card can similarly contact their bank, which can take them through the chargeback scheme to get them their money back.
Travellers who booked flights but did not receive their tickets immediately (including UK domestic flights), or a package holiday, may be protected by Air Travel Organisers’ Licensing (ATOL). This means they should be able to request a refund through the Civil Aviation Authority website.
The Association of British Travel Agents (ABTA) also provides protection for package holidays to destinations in the European Economic Area (EEA) and cover for linked travel arrangements – the purchase of two or more travel services for one trip.
There are exceptions to what ATOL and ABTA cover so do check their websites before travelling.
Frequently Asked Questions (FAQs)
What isn’t covered on holiday cancellation insurance?
Travel insurers do not accept cancellation insurance claims where the policyholder simply no longer wants to go on holiday.
If, for example, the policyholder feels the chosen destination has become unsafe, but FCDO advice still states it is safe to visit, they probably won’t be able to make a claim.
Other circ*mstances in which a claim is unlikely to be accepted include:
- having an illness due to a pre-existing medical condition
- cancelling a trip due to a known event, such as a close relative’s ongoing illness
- getting injured while under the influence of alcohol or drugs
- the travel company, or the credit card provider can provide a refund.
Even in cases where claims are accepted for unused flights, the policyholder may have to cover the cost of airport taxes and air passenger duty. And in almost all cases, there’s an excess to pay on any claim (which is why it’s generally better to get a refund from the supplier or card company where possible).
How much does holiday cancellation insurance cost?
Cancellation cover is offered as standard with most travel insurance policies.
However, while a cheaper policy may only allow claims of up to £2,000 for a trip, a higher-end policy could include cancellation cover of up to £7,000 or more.
The amount of cancellation cover needed can therefore impact the cost of the travel insurance policy.
When does holiday cancellation cover start?
Travellers can take out an annual or single-trip policy, and benefit from holiday cancellation cover straight away.
The main difference is that while single-trip policies will only cover costs relating to the holiday they are bought to protect, the cancellation cover provided by an annual policy runs for 365 days.
Policyholders who already have an annual travel insurance policy will therefore have cancellation cover from the moment they make the payment for a trip within that period.
Either way, cancellation cover for each holiday ends as soon as the trip in question begins.
Cancelling part of the trip after that point requires making a curtailment claim.
Can I claim holiday cancellation due to illness?
Generally, policyholders can make a cancellation claim if they, or someone travelling with them, falls ill and is unable to travel. They may also be able to claim if a close relative – or in some cases a business colleague – falls ill and they cannot travel as a result.
However, they can’t make a claim relating to a pre-existing medical condition they were already aware of, unless they declare the condition when they buy their policy – and usually pay an extra premium for it to be covered.
How can I make a holiday cancellation claim?
Ideally, a traveller should contact their travel insurance provider as soon as they realise they need to cancel their trip. They can usually do this over the phone or online. Their policy should state how.
As claims should be supported with documentation, it’s worth gathering together any necessary paperwork first.
This could include:
- Confirmation of the accommodation reservation
- Flight or train ticket
- Excursion booking receipts
- Cancellation invoices
- Proof of any medical conditions
How can I find the best holiday cancellation insurance?
A travel insurance comparison tool such as ours can make comparing quotes for holiday cancellation insurance simple. The level of holiday cancellation cover is one of the main aspects to consider. Other important factors include:
- Whether the policy will reimburse the full cost of the trip if necessary
- The list of reasons for making a claim – does it include emergencies involving close relatives, for example?
- Whether or not the policy provides reimbursem*nt if the holiday provider (or airline, hotel group etc.) goes out of business
- Whether claims resulting from a member of the group travelling testing positive with Covid-19 test will be accepted
