Travel insurance explained - Which? (2024)

What is travel insurance?

Travel insurance is designed to compensate you if you experience major problems while travelling abroad.

Travelling without cover could leave you massively out of pocket if the unthinkable happens.

But what are the different types of travel insurance and what does it cover? Here's what you need to know before you buy.

If you're looking for travel insurance policy reviews, go to our guide to the best travel insurance.

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What are the different types of travel insurance?

The type of cover you should buy depends on three core things:

• how many trips you're making within the next 12 months
• where you plan to travel
• who you're travelling with

Here are the main choices you'll be faced with:

Single-trip vs annual-trip cover

Depending on the number of trips you're making in the next year, you have two options: annual or single-trip cover.

As the name suggests, single-trip cover insures you for one specific journey. Annual policies (also known as 'multi-trip' policies) provide you with ongoing cover throughout the year, though they usually have limitations on the number of days travel they'll cover per trip.

Generally speaking, annual policies tend to be more expensive than single-trip policies, but they become more cost effective the more you travel.

European, worldwide and USA cover

The distinction between European and worldwide cover might seem simple, but some travel insurers have different ways of classifying your journey.

For example, some European travel cover includes selected countries outside the continent. Meanwhile, some insurers have varying types of worldwide cover - some including regions such as the North America or the Caribbean and others excluding them.

Make sure you check your policy carefully before you buy, to make sure your chosen destination is included.

In general, cover including the USA is more expensive due to high medical costs.

Individual, couple or family cover

If you're travelling with your partner or your family, you have the option of covering everyone under the same policy.

This might work out cheaper, but if one of the travellers in your party needs specialist cover due to their age or medical conditions, it may increase the overall cost of the policy.

• Find out more:best travel insurance

What are the benefits of travel insurance?

Travel insurance policies have a number of features that help cover you and your belongings while you're on holiday.

Our travel insurance policy scores reflect the breadth and extent of cover provided by policies.

Here are some of the most important.

Emergency medical cover

Cover you'll need: £5m

Medical cover is arguably the most fundamental part of your travel insurance policy.

The amount you need may sound huge, but the cost of hospital care and rescue services abroad - or costs of being flown back to the UK for treatment - could be many hundreds of thousands of pounds. With no way of predicting what financial support you could need, it's worth ensuring you're well protected in this area. The vast majority of policies come with millions of pounds of cover.

Make sure you inform your insurer of any pre-existing medical conditions that affect you or a family member travelling with you, even if it seems minor or irrelevant. According to Which? research conducted in 2023, pre-existing medical conditions are one of the most common reasons claims are challenged or declined.

By not being 100% clear (even if it involves a relative with a medical condition), you run the risk of your insurer refusing to pay out.

You'll also need to inform your insurer about any conditions that develop between taking out your policy and making the trip.

• Find out more:medical conditions travel insurance reviews

Cancellation, curtailment and missed departure

Cover you'll need: £2,000, or the value of your trip

Travel insurance will usually pay you compensation if you have to cancel or cut short (curtail) your trip for reasons such as illness or bereavement.

It's always important to check the terms and conditions of your policy to see exactly what is covered, though, as the circ*mstances in which you can make a cancellation or curtailment claim can be restricted.

You should look for a policy that offers cancellation and curtailment cover of at least £2,000 - or the total value of your holiday, including cover for any excursions you've already organised and paid for.

Personal belongings and money

Cover you'll need: £1,500, or the costs of replacing your belongings

Travel insurance normally covers you up to a certain limit for lost or stolen baggage and belongings. As well as an overall limit for replacing your possessions, most travel insurance policies will limit what you can claim for single items. The maximum that most companies will pay out is between £200 and £500 per item, so be sure to bear this in mind when packing for your holiday.

You may want to top up your home contents insurance for possessions away from home if you're taking expensive gadgets, such as smartphones and tablets, watches or jewellery away with you.

Travel insurance policies also tend to limit the amount you can claim for lost and stolen cash, and traveller's cheques. Often the cash limit is £100-£300, so check the terms and conditions of your policy and don't carry too much currency around with you.

Personal liability cover

Cover you'll need: £1m

Personal liability is an important, if rarely used, feature of travel insurance. It covers you in case you face legal bills, which might arise in the event that you accidentally injure someone else or damage their property while you're abroad.

Cover for sports and activities

Standard travel insurance policies may not cover activities such as skiing.

Make sure you know what a policy will cover and add additional cover if necessary.

How do I claim?

Insurance is the one product that you buy hoping you'll never have to use it. In the event that you do, we've created a guide packed with tips and things you need to know to ensure a claim goes as smoothly as possible.

• Find out more:How to claim on your travel insurance.

How else can I protect my holiday?

Although you should always buy travel insurance when you go away, it isn't the only way to protect your holiday.

The following protections work alongside travel insurance; they shouldn't be considered as alternatives. There are some protections that only travel insurance can provide.

Section 75 and chargeback

Where possible, book all flights and holidays worth more than £100 with a credit card, even if you're just paying a deposit.

If the travel provider cancels your trip and you don't get a refund - or the provider goes bust - you're legally entitled to claim the money back from your card provider.

Chargeback is a similar but weaker voluntary scheme applying to debit cards and credit card payments under £100. Again, contact your bank or card provider.

• Find out more:how Section 75 works

Flexible booking policies

Some travel providers have flexible booking policies, allowing you to change your booking for free before you travel.

It's worth checking your provider's booking terms in case you have to cancel or postpone your holiday.

Atol protection

All package holidays sold in the UK should come with Atol protection, which will entitle you to refunds if your holiday provider goes bust. If you're already abroad, it will ensure you get back to the UK.

• Find out more:golf travel insurance explained

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