Don't be conned into costly travel insurance, you can cover all holidays for a year for just £14 or £28 for a family, yet whether policies are priced high or low, there are catches galore to avoid.
This regularly updated best-buys guide shows how to pick the perfect policy, plus compares the cheapest deals for annual cover, single-trip, over 65s, pre-existing conditions and more.
In this guide
- Free European medical cover
- Annual vs. single trip cover
- Full Best Buys guide
- Will my policy pay out?
Travel Insurance Best Buys
- Annual cover
- - Individuals: £14/year
- - Families: £28/year
- - Over 65s: From £29/year
- Pre-existing conditions
- Single trip
Step 1: Get a free EHIC card for Euro travel
The free European Health Insurance Card (EHIC) entitles the holder to medical treatment in state run hospitals in any EU country plus Iceland, Norway. Liechtenstein, & Switzerland at the same cost as a local. So if it's free for them its free for you.
Every traveller to Europe (inc. kids) should get one and keep it on you (it's invalid if you're not holding it) as a crucial emergency measure. For detailed info, including a country by country guide, read the Free EHIC Card guide or get one direct from the EHIC website, Post Offices or call 0845 606 2030.
Yet what's crucial to understand is....
The EHIC gives valuable protection but should never be seen as a substitute for travel insurance.
Travel insurance covers far more than the EHIC, for example costs incurred if EHIC treatment isn't free, private hospital treatment (prevalent in some European countries) or for cancellations, delays, repatriation, baggage loss or theft and more, see the Free EHIC Card guide.
For extra safety, download & print our free 'Little Lifesaver' Travel Guide, full of travel hints and space to write key info like insurance, flight and passport numbers.
Step 2: Use the annual vs single trip tool
For many people its much better value to get an annual travel insurance policy, which covers all trips in a year, rather than single trip - but there are pitfalls. This ready reckoner will help you decide.
Q1. Will you travel to the USA in the next year?
Defining your cover
Unfortunately it's not as simple as just plumping for the cheapest policy; here are some things to watch out for:
Should you cover the family together?
It might sound elementary, but all the more reason to get it right. Policies can be for singles, couples or full families.
As a rule of thumb, the fewer people travelling nearer to home the better, so don't over-cover unnecessarily. If you unexpectedly need more people covered, many providers let you extend cover. Policies usually stipulate a maximum age of 65 before you need specialist cover.
Buy for Europe or Worldwide
Policies can cover you in just Europe or the whole world, though some of the latter exclude the USA and Canada, so check. If you need to extend cover, many providers allow this.
With annual policies, consider where you're likely to go throughout the year. If the list includes a country with poor medical facilities, ensure your policy will cover full repatriation costs.
Also read the Foreign & Commonwealth Office's Travel Advice By Country web page, which indicates those areas deemed unsafe and hence not covered by insurers as standard.
Europe isn't just Europe
That sounds so obscure we could be tempted into paraphrasing Dr Spock... "It's Europe Jim, but not as we know it!". Many policies have very generous definitions of where the boundaries of Europe end.
This means it's likely you can opt for a cheaper 'Europe-only' policy and get covered for Egypt, Morocco, Tunisia, Israel, Western Russia, Turkey and more, so if you're heading somewhere on the fringe, always check this.
Of the cheapest annual policies listed below, most include all these extra countries, though always double check... (most are exclusive deals via Moneysupermarket so the links take you there). See below for full info.
Under 65s: Multitrip* is £14 for singles in Europe with £150 excesses or £28 for couples and families.
Over 65s: Prices rocket, but options include Flexicover* at £64 for 65-69s, though it doesn't include Israel, see over 65s section for more. '
Top value' policies (incorporates past reliability): The MSE & Defaqto top pick from Direct Travel is £22 for singles in Europe though it doesn't include Israel. See the best buys below for more info.
Will you do winter sports this year?
If you're planning on going skiing or snowboarding you usually have to stipulate this upfront. Don't rely on an EHIC card when skiing in Europe, as most resort clinics are private.
All budget winter sports policies should cover both skiing and snowboarding basics like hired or bought equipment, piste closure and avalanches.
Take 'reasonable care'
All insurance policies are based on you taking what they deem 'reasonable care' of your possessions. If you've left a bag unattended and it gets stolen, don't expect a payout; from the insurer's perspective it was your fault. Thus, take all precautions possible and treat your gear as if it isn't insured.
Look out for exclusions/excesses
At least as important as cover levels is taking note of policy exclusions and excesses, which can vary quite widely between insurers; it's a case where reading the small-print, whilst time-consuming, can pay dividends.
Make sure it's decent and correlates well with your travel habits. For instance, many policies do not cover cash. While hardly any will cover pre-existing medical conditions where it's a condition you have or a relative has (if you have to come home/abandon holiday as a result of a family illness).
Do you do dangerous sports/hazardous activities on holidays?
Fans of more extreme winter sports such as bobsleigh, luge, ski jumping or ski racing - or other more hardcore activities such as stunting, acrobatics or white water rafting - will find many policies do not cover them for these activities.
So you'll need to opt for a specialist policy (try something like the BMC). Competition entrants, or anyone skiing/boarding outside recognised areas will find it even harder still
It's also worth digging out the brochures and leaflets that came with your bank account, or possibly credit card. Some of these - often expensive ones you should maybe ditch - come equipped with travel insurance, so check this first as you may already be covered.
Step 3: Travel Insurance Best Buys
The best buys below are the cheapest policies from combining comparison sites results like Moneysupermarket* and Squaremouth* and those they miss inc. Aviva* and Direct Line. Users of cashback sites could get additional cashback on some policies (see Top Cashback Sites).
Quick facts listed below, but details & exclusions vary. All meet a
min. cover amounts criteria
ALWAYS check the policy documents for your personal requirements before buying.
Top Annual Travel Insurance For Individuals
The cheapest policies
All meet MSE's min. cover amounts criteriaThe Top Value policiesStrong feedback and past track record
Europe Only Under 50s £14
The Multitrip policy bought exclusively via comparison site Moneysupermarket* (you pay more direct) is £14.49 if you're under 50, though the excess is £150 (ie if you claim you pay the first £150).
Quick Facts: Cancellation: £2,000 (£150 excess) Personal Baggage: £750 (£150 exc.) Medical: £3m (£150 exc.) Full Info: Key Facts PDF, Policy Wording PDF
Worldwide Under 50s £23
For trips anywhere except USA or Canada, Multitrip exclusively via comparison site Moneysupermarket* (you pay more direct) is £22.99, though the excess is £150 (ie if you claim you pay the first £150).
Quick Facts: Cancellation: £2,000 (£150 excess) Personal Baggage: £750 (£150 exc.) Medical: £3m (£150 exc.) Full Info: Key Facts PDF, Policy Wording PDF
For policies that cover USA & Canada, Elect is £20.80, but only has £750 cancellation cover, or Virgin is £23 for much higher limits, both exclusively via Moneysupermarket* (you pay more direct).
Quick Facts Elect: Cancellation: £750 (£150 excess) Personal Baggage: £750 (£150 exc.) Medical: £10m (£150 exc.) Full Info: Key Facts PDF, Policy Wording PDF
Quick Facts Virgin: Cancellation: £3,000 (£100 excess) Personal Baggage: £1,500 (£100 exc.) Medical: £10m (£150 exc.) Full Info: Key Facts PDF, Policy Wording PDF
Europe Only Over 50s £17
If you're between 50 and 65, InsureMe4's 'Diamond Plus' policy via comparison site Moneysupermarket* (you pay more direct) is £16.68, though it has a pandemic exclusion clause.
Quick Facts: Cancellation: £5,000 (£65 excess) Personal Baggage: £2,000 (£65 exc.) Medical: £10m (£65 exc.) Full Info: Key Facts PDF, Policy Wording PDF
Worldwide Over 50s £31
The cheapest policy, which lets you go anywhere, including the US and Canada, is Holiday Risk exclusively via Moneysupermarket* (you pay more direct) at £31.45.
Quick Facts: Cancellation: £1,500 (£85 excess) Personal Baggage: £1,500 (£85 exc.) Medical: £10m (£85 exc.) Full Info: Key Facts PDF, Policy Wording PDF
Europe only£22
The Direct Travel Standard policy is highly rated by both MSE and insurance rater Defaqto. It’s available via comparison site Moneysupermarket* for £22.22 (you pay more direct).
For MSE, feedback history on the forums, and the fact that it paid out over the ash cloud crisis, considering the reasonable price.
Defaqto says "It's been in the travel insurance market for a long time, underwritten by a very well established insurer and offer a comprehensive range of different annual travel policies."
Travel Insurance Web*, costing £22.99 online for individuals up to 49, is Which?'s cheapest best buy, though they have more of a weighting toward price, like MSE's cheapest policies listed on the left.
Direct Travel 'Standard' Quick Facts: Cancellation: £5,000 (£75 excess) Personal Baggage: £2,000 (£75 exc.) Medical: £10m (£75 exc.) Full Info: Key Facts PDF, Policy Wording PDF
Worldwide£52
The Direct Travel* Standard policy is highly rated by both MSE and insurance rater Defaqto, and costs £52.
For MSE, feedback history on the forums, and the fact that it paid out over the ash cloud crisis, considering the reasonable price.
Defaqto says "It's been in the travel insurance market for a long time, underwritten by a very well established insurer and offer a comprehensive range of different annual travel policies."
Topnotchcover.com, costing £35 online for individuals up to 55, is Which?'s cheapest best buy, though they have more of a weighting toward price, like MSE's cheapest policies listed on the left.
Direct Travel 'Standard' Quick Facts: Cancellation: £3,000 (£75 excess) Personal Baggage: £1,500 (£75 exc.) Medical: £10m (£75 exc.) Full Info: Key Facts PDF, Policy Wording PDF
Annual (inc. Winter Sports) for Individuals
The cheapest policies
The Top Value policiesStrong feedback and past track record
Europe Only Under 50s £23
You can get high cover levels and low excesses with EHIC Plus* for £22.65, plus this has a large set of cover such as missed departures and muggings. You must also hold a Free EHIC Card.
Quick Facts: Cancellation: £5,000 (£75 excess) Baggage: £5,000 (£75 exc.) Medical: £2m (£0 exc.) Full Info: Key Facts PDF, Policy Wording PDF
Worldwide Under 50s £35
The Virgin winter sports policy exclusively via Moneysupermarket* for £34.94 (you pay more direct) gives a good 31 days of cover per year and nice high payout limits.
Quick Facts: Cancellation: £3,000 (£100 excess) Baggage: £1,500 (£100 exc.) Medical: £10m (£100 exc.) Full Info: Key Facts PDF, Policy Wording PDF
Europe Only Over 50s £30
You can get high cover levels and low excesses with EHIC Plus* for £29.70, plus this has a large set of cover such as missed departures and muggings. You must also hold a Free EHIC Card.
Quick Facts: Cancellation: £5,000 (£75 excess) Baggage: £5,000 (£75 exc.) Medical: £2m (£0 exc.) Full Info: Key Facts PDF, Policy Wording PDF
Worldwide Over 50s £39
The Insurefor policy bought exclusively via comparison site Moneysupermarket* (you pay more direct) is £38.73 (up to age 59) and covers 17 winter sports days, but has high excesses.
Quick Facts: Cancellation: £2,000 (£200 excess) Baggage: £1,500 (£150 exc.) Medical: £7.5m (£200 exc.) Full Info: Key Facts PDF, Policy Wording PDF
For over 60s, the cheapest is Virgin exclusively via comparison site Moneysupermarket* (you pay more direct) at £49.61, with cancellation cover of £3,000.
Quick Facts: Cancellation: £3,000 (£100 excess) Baggage: £1,500 (£100 exc.) Medical: £10m (£100 exc.) Full Info: Key Facts PDF, Policy Wording PDF
Europe only£52
The Direct Travel's* Premier policy's highly rated by both MSE and insurance rater Defaqto, and costs £52. It covers 17 winter sports days per trip.
For MSE, feedback history on the forums, and the fact that it paid out over the ash cloud crisis, considering the reasonable price.
Defaqto says "It's been in the travel insurance market for a long time, underwritten by a very well established insurer and offer a comprehensive range of different annual travel policies."
Direct Travel 'Premier' Quick Facts: Cancellation: £4,000 (£60 excess) Personal Baggage: £2,000 (£60 exc.) Medical: £15m (£60 exc.) Full Info: Key Facts PDF, Policy Wording PDF
Worldwide£70
The Direct Travel* Premier policy is highly rated by both MSE and insurance rater Defaqto, and costs £70. It covers 17 winter sports days per trip.
For MSE, feedback history on the forums, and the fact that it paid out over the ash cloud crisis, considering the reasonable price.
Defaqto says "It's been in the travel insurance market for a long time, underwritten by a very well established insurer and offer a comprehensive range of different annual travel policies."
Direct Travel 'Premier' Quick Facts: Cancellation: £4,000 (£60 excess) Personal Baggage: £2,000 (£60 exc.) Medical: £15m (£60 exc.) Full Info: Key Facts PDF, Policy Wording PDF
Annual policies for Families/Couples
The cheapest policies
The Top Value policiesStrong feedback and past track record
Europe Only Under 50s £26
The Multitrip policy bought exclusively via comparison site Moneysupermarket* (you pay more direct) is £25.89 if you're under 50, though the excess is £150 (ie if you claim you pay the first £150).
Quick Facts: Cancellation: £2,000 (£150 excess) Personal Baggage: £750 (£150 exc.) Medical: £3m (£150 exc.) Full Info: Key Facts PDF, Policy Wording PDF
Worldwide Under 50s £37
For trips anywhere except USA or Canada, Multitrip exclusively via comparison site Moneysupermarket* (you pay more direct) is £36.99 though the excess is £150 (ie if you claim you pay the first £150).
If you want USA and Canada included, Ignite is the cheapest at £38.41 again via comparison site Moneysupermarket*, again with excesses of £150
Quick Facts Multitrip: Cancellation: £2,000 (£150 excess) Baggage: £750 (£150 exc.) Medical: £3m (£150 exc.) Full Info: Key Facts PDF, Policy Wording PDF
Quick Facts Ignite: Cancellation: £3,000 (£150 excess) Baggage: £1,500 (£150 exc.) Medical: £5m (£250 exc.) Full Info: Key Facts PDF, Policy Wording PDF
Europe Only Over 50s £30
InsureMe4's 'Diamond Plus' exclusively via Moneysupermarket* (you pay more direct) is £29.53, though it has a pandemic exclusion clause.
Quick Facts: Cancellation: £5,000 (£65 excess) Baggage: £2,000 (£65 exc.) Medical: £10m (£65 exc.) Full Info: Key Fact PDF, Policy Wording PDF
Worldwide Over 50s £41
For 50-59 year olds, Insurefor exclusively via comparison site Moneysupermarket* (you pay more direct) is £41.27, though watch out for the £200 excesses (ie if you claim you pay the first £200)
Quick Facts: Cancellation: £2,000 (£200 excess) Baggage: £1,500 (£150 exc.) Medical: £7.5m (£200 exc.) Full Info: Key Facts PDF, Policy Wording PDF
For over 60s, the cheapest is Virgin exclusively via comparison site Moneysupermarket* (you pay more direct) at £57.25, with big cancellation cover of £3,000.
Quick Facts: Cancellation: £3,000 (£100 excess) Baggage: £1,500 (£100 exc.) Medical: £10m (£100 exc.)Full Info: Key Facts PDF, Policy Wording PDF
Europe only£40
The Direct Travel Standard policy is highly rated by both MSE and insurance rater Defaqto. It’s available via comparison site Moneysupermarket* for £39.41 (you pay more direct).
For MSE, feedback history on the forums, and the fact that it paid out over the ash cloud crisis, considering the reasonable price.
Defaqto says "It's been in the travel insurance market for a long time, underwritten by a very well established insurer and offer a comprehensive range of different annual travel policies."
Topnotchcover.com, costing £41 online for families with members up to 55, is Which?'s cheapest best buy, though they have more of a weighting toward price, like MSE's cheapest policies listed on the left.
Direct Travel 'Standard' Quick Facts: Cancellation: £5,000 (£75 excess) Personal Baggage: £2,000 (£75 exc.) Medical: £10m (£75 exc.) Full Info: Key Facts PDF, Policy Wording PDF
Worldwide £75
The Direct Travel* Standard policy is highly rated by both MSE and insurance rater Defaqto, and costs £75.
For MSE, feedback history on the forums, and the fact that it paid out over the ash cloud crisis, considering the reasonable price.
Defaqto says "It's been in the travel insurance market for a long time, underwritten by a very well established insurer and offer a comprehensive range of different annual travel policies."
Topnotchcover.com Silver, costing £52 online for families with members up to 55, is Which?'s cheapest best buy, though they have more of a weighting toward price, like MSE's cheapest policies listed on the left.
Direct Travel 'Standard' Quick Facts: Cancellation: £3,000 (£75 excess) Personal Baggage: £1,500 (£75 exc.) Medical: £10m (£75 exc.) Full Info: Key Facts PDF, Policy Wording PDF
Annual (Inc. Winter Sports) Families/Couples
The cheapest policies
The Top Value policiesStrong feedback and past track record
Europe Only Under 50s £40
The Multitrip policy bought exclusively via comparison site Moneysupermarket* (you pay more direct) is £39.99 if you're under 50, though the excess is £150 (ie if you claim you pay the first £150).
Quick Facts: Cancellation: £2,000 (£150 excess) Personal Baggage: £750 (£150 exc.) Medical: £3m (£150 exc.) Full Info: Key Facts PDF, Policy Wording PDF
Worldwide Under 50s £54
The Insurefor policy bought exclusively via comparison site Moneysupermarket* (you pay more direct) is £53.64 if you're under 50, though the excess is £150 or £200 (ie if you claim you pay the first £150/200).
Quick Facts: Cancellation: £2,000 (£200 excess) Personal Baggage: £1,500 (£150 exc.) Medical: £7.5m (£200 exc.) Full Info: Key Facts PDF, Policy Wording PDF
Europe Only Over 50s £43
For 50-59 year olds, Insurefor exclusively via comparison site Moneysupermarket* (you pay more direct) is £43.29 and covers 17 winter sports days, though watch out for the £200 excesses (ie if you claim you pay the first £200)
Quick Facts: Cancellation: £2,000 (£200 excess) Baggage: £1,500 (£150 exc.) Medical: £7.5m (£200 exc.) Full Info: Key Facts, Policy Wording
If you're older, the cheapest is Virgin exclusively via comparison site Moneysupermarket* (you pay more direct) at £52.94, with big cancellation of £3,000.
Quick Facts: Cancellation: £3,000 (£150 excess) Baggage: £1,500 (£100 exc.) Medical: £10m (£150 exc.) Full Info: Key Facts PDF, Policy Wording PDF
Worldwide Over 50s £54
For 50-59 year olds, Insurefor exclusively via comparison site Moneysupermarket* (you pay more direct) is £53.64 and covers 17 winter sports days, but excesses of up to £200 (ie you pay the first £200 of claims)
Quick Facts: Cancellation: £2,000 (£200 excess) Baggage: £1,500 (£150 exc.) Medical: £7.5m (£200 exc.) Full Info: Key Facts, Policy Wording
If you're older, the cheapest is Virgin exclusively via comparison site Moneysupermarket* (you pay more direct) at £73.87, with big cancellation of £3,000.
Quick Facts: Cancellation: £3,000 (£100 excess) Baggage: £1,500 (£100 exc.) Medical: £10m (£150 exc.) Full Info: Key Facts PDF, Policy Wording PDF
Europe only £72
The Direct Travel* Premier policy is highly rated by both MoneySavingExpert and insurance rater Defaqto, and costs £72. It covers 17 winter sports days per trip.
For MSE, feedback history on the forums, and the fact that it paid out over the ash cloud crisis, considering the reasonable price.
Defaqto says "It's been in the travel insurance market for a long time, underwritten by a very well established insurer and offer a comprehensive range of different annual travel policies."
Direct Travel 'Premier' Quick Facts: Cancellation: £4,000 (£60 excess) Personal Baggage: £2,000 (£60 exc.) Medical: £15m (£60 exc.) Full Info: Key Facts PDF, Policy Wording PDF
Worldwide £99
The Direct Travel* Premier policy is highly rated by both MSE and insurance rater Defaqto, and costs £99. It covers 17 winter sports days per trip.
For MSE, feedback history on the forums, and the fact that it paid out over the ash cloud crisis, considering the reasonable price.
Defaqto says "It's been in the travel insurance market for a long time, underwritten by a very well established insurer and offer a comprehensive range of different annual travel policies."
Direct Travel 'Premier' Quick Facts: Cancellation: £4,000 (£60 excess) Personal Baggage: £2,000 (£60 exc.) Medical: £15m (£60 exc.) Full Info: Key Facts PDF, Policy Wording PDF
The game changes for the 65 and overs, primarily because insurer's risk charts predict more claims are likely, so sadly even those in perfect health pay more. Those rejected on grounds of health should see the note below.
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Age 65-69: If travelling in Europe, the cheapest by some distance is to get annual insurance from EHIC Plus* at £41 for individuals and £69.85 for a couple (you need a Free EHIC Card too). However, always insist you're taken to a state hospital not a private clinic.
If you're going further afield, Flexicover bought exclusively via comparison site Moneysupermarket* (you pay more direct) is £63.50 for an individual or £92.50 for a couple, with a £1k cancellation payout. -
Age 70-74: The cheapest for individuals is from Holiday Risk exclusively via comparison site Moneysupermarket* (you pay more direct) at £58.45 for Europe and £75.85 for worldwide. For couples, Insurefor (again from the link above) has cover for £91.45 in Europe and £102.66 worldwide.
The excess for both are pretty high - up to £200 (ie. you pay the first £200 of any claims), but it's possible to cut this by paying slightly more for the insurance.
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Age 75-80: The cheapest are from Insurefor bought exclusively via comparison site Moneysupermarket* (more direct) at £66.15 for individuals and £91.45 for couples in Europe, or £80.28 and £102.66 respectively for worldwide travel.
The excess are pretty high - up to £200 (ie. you pay the first £200 of any claims), but it's possible to halve this by paying slightly more for the insurance. -
Over 80: This is where it gets really pricey and may well be worth trying for single cover. Otherwise, Age Concern has an annual policy for individuals costing £275 in Europe (£545 for a couple) and £470 worldwide (£842 for a couple).
Cover for Pre-Existing conditions
Anyone who's had a past serious medical condition or disability is likely to be quoted ludicrously high amounts from most traditional insurers, and it's even worse for those who are also over 65. Yet there are a number of ways to cut the cost and still ensure you're protected:
Staying in Europe? Get an EHIC card
The EHIC card gives you free or discounted medical treatment in any state run European Union (and a few other countries) hospital - Read full guide.
Consider single trip cover
Different countries' medical costs vary, and annual policies need to price this in, putting the average cost up. Therefore, unless you're going to a country with high medical costs, like the USA and Spain, it's often worth getting a quote for a single trip policy rather than annual.
Cheaper policies from Specialist Insurers
There are a number of insurers that specialise in giving policies to those with prior illnesses, there are no hard or fast rules so get quotes from as many as you can.
If you'd rather pay a high excess rather than a high outlay for the premium, Global Travel Insurance* offers good rates, but you'll pay between £500 and £1,500, depending on age, to claim treatment for your condition.
If not, there are a few good specialists for those with pre-existing conditions, MIA Online, Orbis, InsuranceWith and Travelbility which also offers good rates to customers with disabilities. Travel Plan Direct is also worth a check. For breast cancer sufferers, check policy details and quotes from insurers Insurepink.
Get benchmark quotes from them and then see if you can beat it using Saga, Age UK and Insureandgo* (you'll need to phone the latter).
Cheap Alternative for Europe cover
Grab a free government EHIC Card, which entitles you to free or discounted treatment in a State-run EU hospitals. Then add the Medical Screening company's EHIC Plus* annual travel insurance which costs around £30 for an individual over 65 or £50 for a couple. Between both the card and insurance you'll then be covered for...
EHIC medical expenses. Any costs you incur for treatment when using the EHIC card in a State-run hospital, plus private ambulances and medication costs.
Baggage cancellation etc. The insurance cover is on a par with similar policies, with baggage, cancellation, curtailment & repatriation cover offered as standard.
Thus, should the worst happen, you must insist you're taken to a state hospital not a private clinic.
Get a packaged bank account
Travel Insurance is often one of the perks you can get for paying a monthly fee for a bank account (usually between £12 and £25). Normally we shout from the hilltops to avoid paid-for current accounts like the plague, but this may finally be a use for them (see all the Best Bank Accounts for normal use).
Some of the policies on offer are more comprehensive than those available elsewhere - mainly as the bank account makes it pretty expensive. Yet for anyone with pre-existing medical conditions, if you speak to the bank and it confirms the policy would cover you, it could actually be quite cheap.
All the big banks offer these; give Lloyds TSB's Gold and Platinum accounts a quick check first as it is often the most accessible..
The worse case scenario solution
If cover is still unaffordable, the price may drop considerably if you ask insurers to exclude pre-existing conditions; though it's then your judgment call on the risks of going with limited cover.
Single Trip Policies
While single trip policies have got a bad rep due to over expensive travel insurance where you can pay £50 for a week by a pool in Spain, done right they can be an extremely cheap way of getting protection.
There's a huge variance in price depending on the length of stay, where you're headed and who you are, to name just three. As such it's impossible to give any definitive winner, so the best option is to use a comparison service.
In terms of range and price there are three, do check them all if possible - MoneySupermarket*, Confused.com* and Squaremouth*. The prices are much cheaper than annual policies, for example, these meet our minimum cover amounts ...
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For individuals: The Essentials policy from Virgin bought exclusively via price comparison Moneysupermarket* (you pay more direct) costs just £5.58 for a week's European trip and £9.30 for Worldwide travel (excluding the USA and Canada).
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For families: The Diamond Plus policy from Insureme4 bought exclusively via price comparison Moneysupermarket* (you pay more direct) costs just £7.95 for a week's European trip, while Holiday Extras is £21.42, again via Moneysupermarket*for Worldwide (excluding USA and Canada).
Once you've got the comparison sites results always double check the quotes and what's included on the providers' own website. The impact can be most keenly felt by those with non-standard circumstances when it's even more important to confirm your requirements.
Will the policy pay out? Q&A
An insurance policy that doesn't pay out when you need it to is about as useful as a chocolate teapot.
Is costlier cover worth it?
Insurance providers go all out to scare us into upping the levels of cover. Don't be duped!
Don't upgrade for no reason. Platinum policies with £200m medical cover are bunkum; you're charged more without getting more.
The chances of you using the extra cover are generally slimmer than Kate Moss on a diet, far more important for many is how likely it is to pay out.
Is cancellation covered?
Not all policies will cover you if you voluntarily abandon your holiday, only if you have to cancel due to unforeseen circumstances, such as a death in the family.
This clause has hampered those who have abandoned their trip following airline strikes or where no-fly zones have been imposed following incidents such as the volcanic ash cloud from Iceland. Some insurers viewed this as a voluntary abandonment on travellers' parts.
Is it a package or DIY trip?
Most travel insurance policies are designed to cover packages, as ten years ago that's how 90% of us booked our hols, and providers haven't kept up. Problematically, this leaves them ill equipped to cover DIY trips, where flights and accommodation are booked separately.
The biggest issue is a lack of cover for knock-on consequences. If a policy covers scheduled airline failure, for example, and the airline goes under, you'll be able to claim for the flights. But if you can't reach your hotel, you'll lose the money you paid for it.
To beat this you need a policy that specifically covers 'indirect loss' - check the small print. For maximum cover, look for special 'independent traveller' policies, which are increasingly available though cost a bit more than regular policies.
Do remember though, inherent in package holidays are extra ATOL and ABTA protections, which you don't get on DIY trips. If you're booking a DIY trip, if the additional fee isn't too prohibitive book on a credit card (repaid in full to avoid interest) and then you get Section 75 protection for anything costing over £100
Take 'reasonable care'
All insurance policies are based on you taking what they deem 'reasonable care' of your possessions. If you've left a bag unattended and it gets stolen, don't expect a payout; from the insurer's perspective it was your fault. Thus, take all precautions possible and treat your gear as if it isn't insured.
Being drunk can invalidate your travel insurance
Many people aren't aware that if you are drunk on holiday and an incident happens your travel insurance may not cover you. This could be if you lose or have goods stolen, or possibly you may even be excluded from medical cover. So if you are planning to drink, do try and minimise the valuables with you and of course take care.
Look out for exclusions/excesses
At least as important as cover levels is taking note of policy exclusions and excesses, which can vary quite widely between insurers; it's a case where reading the small-print, whilst time-consuming, can pay dividends.
Make sure it's decent and correlates well with your travel habits. For instance, many policies do not cover cash. While hardly any will cover pre-existing medical conditions where it's a condition you have or a relative has (if you have to come home/abandon holiday as a result of a family illness).
Is there a 24hr hotline number?
Time zone differences mean a 24/7 claim line is more necessary than many think. Most insurers now offer one, so keep the number written down somewhere close to hand in case of emergencies (our 'Little Lifesaver' pocket travel guide is perfect for this).
What about credit card travel insurance?
There's a lot of confusion about credit card travel insurance. Often, it's actually only travel accident insurance, which only covers accidents had while on a train, plane or in a hire car paid for on the card, so never think this means you're covered.
A few platinum cards or bank accounts genuinely offer free travel insurance, though the cover levels are usually poor and you often have to pay both the deposit and the full holiday cost on the card or you'll fall foul of their conditions. Always check before relying on this.
This insurance is totally separate to section 75 legal protection, that simply means you have the same consumer rights from the credit card company as you do from the vendor if something goes wrong (see thet Section 75 guide for more info).
What if my travel insurer goes bust?
All the companies listed use FSA regulated underwriters, which is the basic check. Yet there are no hard and fast guarantees, in the past travel insurers both big and small have collapsed. This shouldn't unduly worry you though, as it's a rare event, but it's important to be aware of the minor possibility.
Should this happen, the Financial Services Protection Scheme (FSCS) protects you in two ways
If you need to claim from a bust insurer
The FSCS's main objective is to 'maintain continuity'. This means if your insurer goes bust, it will try and find another provider to take over your policy, or issue a substitute policy. However, if you have any ongoing claims, or need to make a claim before a new insurer is found, the FSCS should ensure these are covered.
If it goes bust and you paid upfront
If you"ve paid for cover for a year, but the company goes bust after a month or two, then you would lose out.
To protect against that, if the FSCS can't transfer your policy to another provider, you'll be given a period of time to take out alternative insurance, and any money you've already paid will be refunded as compensation via the FSCS. To help explain, here's a quick example...
You paid for a year long policy in January and the insurer went bust in September. If the FSCS can't get the policy transferred elsewhere, then you will receive 4 months compensation of the original cost.
The limits of the compensation depend on whether the policy is compulsory or not. Compensation for policies like third party car insurance, which you are required by law to have, are unlimited, so you get 100% of the premium back. Non-compulsory policies (e.g. home, travel, payment protection) have to cover 90% of the money paid.
What happens with natural disasters or emergencies
This is where it gets tough. While we may think something like the spring 2010 Icelandic volcanic ash spurt was a natural disaster (rarely covered) it could equally be classified as a weather condition (usually covered) and for cancellation payouts this definition is crucial as to whether it'll pay out.
Yet the problem with this is it's about the unknown so it's impossible to know what the next 'volcano' or 'swine flu' issue and second guess how an insurer will deal with it.
Don't automatically jump to the conclusion that this is about price though, some far from cheap insurers like Aviva, Barclays, Lloyds TSB and Nationwide, didn't pay out for all volcano related costs.
So what can you do? Well our view, and some may disagree, is ensure the common risks are appropriately covered like medical issues while away, lost baggage, repatriation, stolen cameras etc and the price is low at least that way you've a bit of cash left over in case unforeseen eventualities do happen.
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