Travel insurance explained
To help you decide which type of travel insurance is right for you, we've compiled a short guide that explains what it is, why it’s so
important and how you can save money but still find the right cover for your needs.
What is travel insurance and why do I need it?
Travel insurance protects you against medical expenses and other losses incurred while travelling. Illness and accidents can happen at any
time, no matter how far you are from home and no matter how inconvenient it may be. A medical emergency abroad can be extremely expensive, and
should you require hospitalisation or need to be returned home by air ambulance or with a medical escort, then the cost could run into many
thousands of pounds. Without travel insurance, you’d be fully responsible for the costs incurred – there is no financial help available from
the Foreign Office or British Embassy.
Travel insurance can also protect you against a range of other risks, ranging from lost or delayed baggage, to cancellation and curtailment of your trip.
Although it won’t make such events any less stressful and upsetting, it can give you peace of mind by helping to ease the financial worries associated with
them.
What policies are available?
There are a number of different types of travel insurance policy available, including:
- Single trip travel insurance
Single trip travel insurance covers a single holiday or trip. Cover is limited to the duration of the trip and policies normally
specify a maximum length of stay.
- Annual / multi-trip travel insurance
Annual travel insurance, also known as multi-trip travel insurance, provides cover for a 12 month
period and is a cost-effective option if you plan to make more than one trip during the policy period. Most policies have a maximum length of stay per
trip (normally 30 - 45 days), although this will vary between policies and providers.
- Long stay travel insurance
As the name suggests, long stay travel insurance policies are designed to cover extended
trips that exceed the maximum number of days permitted under single trip and annual policies. Usually these are trips that last for more than 30
days.
- Backpacker's insurance / gap year insurance
Similar to long stay travel insurance, backpacker's and gap year insurance policies provide cover for
extended trips and are designed to cover the particular risks associated with this type of travel. Policies may include cover for a range of activities as
standard and normally it is possible to add on additional cover too, such as for winter sports or adventurous pursuits.
When you take out a travel insurance policy you will normally have the option of insuring an individual, a couple (two people travelling
together) or a family. Some travel insurance companies also offer specialist policies for groups, such as for schools and clubs etc.
If you do want to insure all family members, then combined family cover will normally work out cheaper than insuring all family members
individually. This is because many providers offer discounts for families and some will offer a standard family policy with the same policy
terms no matter how many children you have – so if you do have a larger family then this can be a very cost effective option.
If you are aged over 65 or have pre-existing medical conditions then finding travel insurance may be more challenging.
[Skip to travel insurance for the over 65s and pre-existing medical conditions]
In the next part of our guide we look at travel insurance cover options to help you get the right level of cover for your needs.