What Is Travel Insurance and Do You Really Need It?

Every year, millions of UK travellers head abroad without adequate travel insurance — and every year, thousands find themselves facing bills that can run into tens of thousands of pounds. Travel insurance is not a luxury; for many trips, it's an essential safeguard.

What Travel Insurance Covers

A standard UK travel insurance policy typically includes:

• Medical expenses — emergency treatment abroad, including hospitalisation, surgery, and repatriation. This is the most important element: medical costs in the US can exceed £100,000 for serious treatment.
• Trip cancellation — reimbursement if you must cancel for a covered reason (illness, bereavement, redundancy)
• Trip interruption — costs of cutting short a trip and returning home early
• Baggage and personal effects — theft, loss, or damage to luggage and belongings
• Travel delay — compensation for significant flight or transport delays
• Personal liability — cover if you accidentally injure someone or damage property abroad
• Missed departure — if you miss your flight due to a covered cause (accident, breakdown)

The GHIC Card: Not Enough on Its Own

The Global Health Insurance Card (GHIC), which replaced the EHIC after Brexit, gives UK residents access to state medical care in EU countries at local rates — but it does not cover repatriation, private treatment, or any non-medical costs. It reduces bills in EU countries but is not a substitute for travel insurance.

Single Trip vs Annual Multi-Trip Policies

If you travel twice or more per year, an annual multi-trip policy is almost always better value. A typical annual policy costs £40–£80 for a couple in their 40s with worldwide cover, versus £20–£35 per single trip. Break-even is usually at two trips per year.

Annual policies typically cap trip length at 31 or 45 days per trip — check this limit if you take extended holidays.

Key Exclusions to Know

• Pre-existing medical conditions — must be declared; failure to do so invalidates claims. Many standard policies exclude conditions declared, though specialist insurers (All Clear, Staysure) can cover them for a higher premium.
• Alcohol and drug-related incidents — claims arising while intoxicated are typically excluded
• Activities and sports — skiing, diving, cycling events, and other activities usually require specific cover or a sports extension
• FCDO travel advice — travelling against Foreign, Commonwealth & Development Office advice typically voids medical and cancellation cover
• Undeclared destinations — ensure your policy covers every country on your itinerary

How Much Does Travel Insurance Cost?

For a healthy adult under 40, single-trip European cover costs £5–£15. Worldwide cover with the US costs more due to US healthcare prices. Over-65s and those with pre-existing conditions pay more but should not assume it's unaffordable — comparison sites including Compare the Market and MoneySuperMarket allow filtering by condition.

Do You Really Need It?

The short answer is yes, for almost any trip abroad. The cost of a week's European travel insurance is equivalent to a cup of coffee per day. The cost of even a minor accident requiring hospital treatment in a country without a reciprocal healthcare agreement — or the cost of emergency repatriation — can run to thousands of pounds. The risk-reward calculation is not close.