Cheap Travel Insurance

Every travel insurance policy covers different things but all would offer a varying degree of cover on:

Medical cover
Unforeseen illnesses, injuries or accidents will be covered under the medical section of your policy. This covers the cost of receiving treatment overseas – including dental emergencies in most cases – and repatriation, the cost of having to fly you back to the UK.

On a slightly more morbid note, most policies cover cremation costs or the repatriation of a body should you or someone else covered under the policy die during your holiday.

Cancellation
Travel policies also cover cancellation if you can no longer go on your holiday or you need to come back early. However, there needs to be a valid reason for you to abandon your trip.

Being made redundant, having to do jury service, or having to take care of a seriously ill family member are among the list of valid reasons. But if you decide you no longer fancy a trip to the Canary Islands because you would rather go to the Maldives, or you want to return to the UK because you forgot to put EastEnders on series record, your claim will probably be rejected.

Baggage and personal belongings
Your travel policy will also cover you if your stuff is lost, stolen or damaged while you are on holiday. Almost everything you take overseas, including computers, phones, cameras and expensive clothing is included. Many providers will also cover you for the loss of a passport, cash or a driving licence.

However, policies can vary greatly both in the amount covered and in the excess – the amount you have to pay towards the claim yourself. For example, items such as cash or expensive goods can be subject to an additional higher excess.

Personal liability
Personal liability protects others and their property from accidents you may cause while on holiday. For example, the personal liability element of your insurance would cover you if, during a skiing trip, you crashed into another skier and injured them. Insurers will typically cover you for up to £2m, which is generally more than enough.

Delays
Travel schedules are often the victim of adverse weather, so delay cover is one of the more important aspects of travel insurance. Most policies cover against more than just storms, with many including events such as industrial action and mechanical breakdown.

If your flight's been delayed for more than three hours or it's been cancelled you may be able to claim compensation of up to £470 directly from the airline but the reason for the delay or cancellation must be the airline's fault, so bad weather for example, won't count.

This compensation is only for EU-regulated flights. An EU flight is where the flight departed from an EU airport, regardless of the airline OR where an EU airline landed at an EU airport. Under this law, EU airports also include those in Iceland, Liechtenstein, Norway and Switzerland. See our Flight Delay Compensation guide for more info.

If this doesn't apply – perhaps because you flew both from and to an airport outside the EU – you can also try making a claim on your travel insurance policy. Insurers typically pay out for each 12-hour period you've been delayed, but the payouts are often tiny compared to what you can get from your airline.

Like all insurance policies, there are a number of things that providers will not pay out for. Here are the most common:

Alcohol-related injury
You may be on holiday to unwind but if you are badly injured while you are more than just a little tipsy, your insurer is likely to reject your claim. The same goes for drugs. Insurers have different classifications of 'drunk', with some using blood alcohol limits, so check your policy carefully before you buy.

Medical conditions
Insurers will often cover you if you have pre-existing medical conditions, but if you fail to tell your insurer and then need treatment for that condition, or a related condition, you won't be covered. You may also struggle to get a claim paid if you ignore advised medication or jabs needed to enter a country. So, if you go to Kenya and decide against getting jabs for diphtheria, hepatitis A, poliomyelitis, tetanus and typhoid do not expect your insurer to foot the bill if the worst happens.

Dangerous sports
If you are going on an adventure holiday, or you are planning to take a winter sports break, you must get extra cover or a specialist policy. Taking to the Alps for a spot of snowboarding with just a basic travel insurance policy in your bag is a risk not worth taking. If you get injured you could end up paying £10,000s in medical bills.

Refused entry (to visiting country)
No one wants their holiday to end before it begins, but most standard policies won't cover this type of scenario. Insurance policies have a list of scenarios they do cover (eg, theft, medical assistance).

To mitigate against problems, as it's your responsibility to check your travel documents are valid and you meet the entry requirements, always check the Foreign and Commonwealth Office website for the entry rules of the countries you're visiting well before travelling and give yourself plenty of time to get your paperwork in order.

Unattended possessions
Travel insurance will cover your personal possessions when you are abroad but it doesn't mean you can be gung ho with your stuff. If you leave your items unattended and they are then stolen, your insurer will not pay for their replacement.

Travel to dangerous countries
The Foreign and Commonwealth Office (FCO) outlines which countries are unsafe for travel. If you travel to a country on the FCO's list your cover is likely to be invalid. Check out the FCO's current travel advice for more.

Insurers will classify your trip as 'European' or 'worldwide'. Worldwide is often further broken down to include or exclude the US. Selecting the option to include the US increases the premium due to the high cost of medical treatment in the US and possible repatriation.

European annual travel cover isn't just for Europe
If you're travelling just outside Europe, you don't always have to select worldwide cover. Many insurers actually allow you to use their European cover in a handful of non-European countries too.

If you're visiting Egypt, Morocco, Turkey or Tunisia, it's worth getting a quotation for European cover first and then checking the policy's geographical area definition to see if the country you're going to is included. Our cheapest top picks – Allianz, Insure and Go* and Coverwise* – all class Egypt, Morocco, Turkey and Tunisia as Europe.

It's also worth noting that not all insurers automatically include Spain (and the Balearic/Canary Islands) in their European cover – you may have to pay extra to include Spain.

As always, check your policy carefully to make sure you're getting the right cover.

An excess is the amount you have to pay towards any claim you make. For example, if you cancel a trip and are entitled to £3,000 back from your insurer but have a £500 excess you will only receive £2,500.

However, many travel insurance products have separate excesses for different sections of the policy. For instance, some providers may make you pay an excess on both stolen cash and luggage. So if your suitcase was nicked and your wallet was inside you would have to pay an excess on both.

If you have a group policy you may also have to pay an excess for each person for any loss that impacts your entire party, such as cancellation. It's important to check all excesses so you know exactly what you will have to pay if you make a claim.

Most travel insurance policies are designed to cover package holidays, as historically that's how 90% of us booked our holidays, and not all providers have kept up. 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 typically be able to claim for the flights and any consequential losses, such as hotel costs. Without this cover, you'll lose the money you paid for it.

To beat this, you need a policy that specifically covers 'indirect loss' or 'scheduled airline failure'. Check the small print as some insurers include this cover as standard, while with others it is an optional extra.

Remember, packaged holidays feature extra ATOL and ABTA protection, which you don't get on DIY trips. If you're booking a DIY trip, if the additional fee isn't too expensive, book with a credit card (repaid in full to avoid interest) and then you get Section 75 protection for anything costing over £100.

As with any insurance product, check all the terms, conditions, exclusions and inclusions before you buy. Travelling without the right cover can leave you seriously out of pocket.

Remember to check your excesses too. High excesses may result in a cheaper policy but should only be considered if you can afford to front a large portion of the costs of any claim yourself.

There's no clear answer on this: some insurers will cover you, some won't, so double-check your policy – whether out of curiosity or if you need to make a quick decision on which to go to.

Of those we asked, it was a mixed bag. For example, if you're overseas and know you need to go to hospital to check out a chest pain, LV says it would cover you in a private hospital but Holidaysafe won't.

However, if you're in an emergency, eg, you've a ruptured appendix or had a serious accident and are taken to a private hospital by emergency services without your knowledge, you're more likely to be covered by insurance but there's still a chance of rejection. If rejected and you're unhappy, you can always go to the Financial Ombudsman Service, which can arbitrate.

Remember, too, an EHIC WON'T cover you for any private treatment.

Annual cover will insure you for an unlimited number of trips over a 12-month period. However, the number of days you can be on holiday for per trip may be capped – it is often 31 days but can sometimes be as low as 17 or as high as 90. If you're planning a backpacking trip where you'll be away for months on end, you'll need specialist backpacker insurance.

Many holidaymakers wrongly assume they're automatically covered for winter sports as part of their travel insurance. While some providers offer winter sports as standard under certain policies, other travel insurers only cover you if you extend your insurance and this will typically cost extra.

All winter sports policies will cover you for skiing and snowboarding and many will also cover other activities, such as husky dog sleigh riding and sledging, as standard. If you are doing something a bit more unusual, such as ski jumping or snowmobiling, check the terms and conditions of your policy first. If you are planning to take part in something even more crazy – such as luging or stunt skiing – specialist providers such as BMC and Snowcard may be able to offer you cover.

If you opt for a specialist travel policy, check your details closely to make sure you know the limits of your cover.

Don't forget to pick your specialist provider like any other travel provider. Make sure you tell your insurer about any pre-existing medical conditions and remember to pack your EHIC if you are going somewhere in Europe.

The cost of medical bills if you get injured on the slopes can be extortionate so it is essential to have the right cover.

Being airlifted from the mountain to hospital can cost £2,500, repatriation from Europe can set you back £10,000 and you will have to fork out £40,000 if you need to be flown home injured from the US or Canada.

As well as covering yourself, winter sports insurance will also cover your ski pack and cancellation of your holiday.

In most cases, you'll be allowed to ski off-piste but with certain restrictions. You'll have to be within the boundary of the resort or supervised by a qualified instructor.

Lucky you. It may be cheaper to take out an annual policy with a winter sports add-on. However, check the price against the cost of covering single trips to ensure you're getting a bargain.

If your piste closes (usually due to lack of snow or an avalanche) and you're unable to hit the slopes, your insurer may give you back a set amount per day. This can range from £10 to £30 – up to a limit of £200 or £300.

Most winter sports policies will cover you for accidental damage, theft or the loss of equipment. The onus will be on you to keep your gear safe, so don't leave it at the mercy of crooks.

Your equipment will usually be covered for up to £3,000, but different providers offer different limits. The sum insured is usually in addition to your standard baggage cover. For example, Axa Direct will cover up to £2,000 worth of equipment with some policies, while Admiral will only cover up to £1,000. Think about the value of your stuff and pick your policy accordingly.

If you've hired ski equipment, it may be covered by your insurer if it's lost, stolen or damaged. Some providers insure any rented kit as part of your baggage up to the limit of the coverage. Other insurers only pay up to 50% of the sum insured for hired equipment. Some ski equipment providers may also cover their gear for you so it is worth checking with the resort before you buy your cover.

In most cases, your ski pack – including ski school fees, a lift pass and hired ski equipment – is covered. The amount can range from £150 to £500, but can be as high as £5,000. As always, check your policy closely for any potential exclusions.

Check your policy carefully before you buy. If you go skiing despite weather warnings and – with some providers – or go skiing without wearing a helmet, your claim could be rejected. In some counties, it's also a legal requirement to wear a helmet, so don't fall foul of the rules.