Do I Really Need Travel Insurance for My Holiday? What UK Travellers Should Know

When you're booking a holiday, travel insurance may not be top of your list — especially if you're trying to keep costs down. But if something goes wrong, from medical emergencies abroad to cancelled flights or lost luggage, not having cover can turn your dream trip into a financial disaster.

So, do you actually need travel insurance for your holiday? The short answer is yes — especially if you're leaving the UK. Even for domestic trips, it’s worth considering. This guide explains why travel insurance matters, what it covers, what it excludes, and how to find the right policy for your trip.

What Is Travel Insurance?

Travel insurance is a financial safety net that protects you against a range of unexpected events while travelling, including:

• Medical emergencies abroad

• Trip cancellations or delays

• Lost, stolen, or damaged luggage

• Personal liability

• Missed departures or connections

It typically covers you from the moment the policy is purchased (for cancellation purposes) until you return home.

Read our guide on: What Does Travel Insurance Cover?

Do I Need Travel Insurance for Trips Abroad?

Yes — especially outside the UK.

Even short trips to Europe come with risks. The Foreign, Commonwealth & Development Office (FCDO) advises all travellers to get appropriate travel insurance before leaving the UK. This is particularly important for:

• Medical emergencies (private hospitals can charge thousands)

• Repatriation costs (returning you to the UK if injured or unwell)

• Flight delays or cancellations

• Lost baggage or passports

Without insurance, you could face:

• £10,000+ in medical bills after an accident abroad

• £2,000+ to fly you home with a medical escort

• Complete loss of holiday costs if forced to cancel last-minute

Do I Need Travel Insurance for Holidays in the UK?

It depends — but it can still be worth it.

You won’t need cover for medical treatment, as the NHS will handle that. However, UK-based travel insurance can still protect you from:

• Cancellation fees (e.g. non-refundable hotel bookings)

• Lost or stolen belongings

• Car breakdowns or missed connections

• Damage to rental accommodation

Example: If you book a £1,200 cottage in Cornwall and fall ill two days before departure, cancellation cover could refund you in full — whereas the rental company may not.

What Does Travel Insurance Cover?

While policies vary, most include the following as standard:

1. Emergency Medical Expenses

• Private hospital care abroad

• Emergency transport and treatment

• Repatriation to the UK

2. Trip Cancellation or Curtailment

• Illness or injury before or during your holiday

• Redundancy or jury service

• Unexpected death in the family

• Natural disasters or severe travel disruption

3. Lost, Stolen or Damaged Belongings

• Cover for luggage, personal items, and documents

• Some policies cover gadgets or sports equipment (e.g. skis)

4. Travel Delay or Missed Departure

• Compensation for long delays

• Extra costs if you miss a connection due to delays or strikes

5. Personal Liability

• Covers legal costs and damages if you accidentally injure someone or damage property

Read our guide on: Best Travel Insurance for UK Holidaymakers

What’s Usually NOT Covered?

Be aware of common exclusions. Travel insurance won’t typically pay out for:

• Pre-existing medical conditions (unless declared and accepted)

• Travel to countries under FCDO 'advice against all travel' warnings

• Missed flights due to oversleeping or arriving late

• Alcohol- or drug-related incidents

• High-risk activities like scuba diving or skiing unless you’ve bought extra cover

• Unattended baggage

Always read your policy wording carefully.

Is the GHIC or EHIC Enough for Europe?

No. The Global Health Insurance Card (GHIC) — which replaced the EHIC — allows UK residents access to state-provided healthcare in EU countries. However, it:

• Does not cover repatriation to the UK

• Does not cover private care

• Does not cover cancellations, delays, or baggage

So while useful, a GHIC is not a substitute for full travel insurance.

Apply for a free GHIC at www.nhs.uk/ghic

Types of Travel Insurance: Which One Do You Need?

Choosing the right policy depends on how often you travel and what you’re doing.

1. Single Trip Insurance

• Ideal for one-off holidays

• Covers one specific trip (dates and destination)

2. Annual Multi-Trip Insurance

• Covers unlimited trips in a 12-month period

• Often more cost-effective if you travel more than twice a year

3. Backpacker or Long-Stay Cover

• Designed for extended trips abroad

• Includes extra cover for more adventurous activities

4. Specialist Policies

• Cruise cover

• Winter sports cover

• Over-65s or pre-existing conditions cover

• Business travel insurance

Read our guide on: Travel Insurance Policy Types Explained

How Much Does Travel Insurance Cost?

Costs depend on:

• Age — older travellers often pay more

• Destination — USA and Caribbean cost more than Europe

• Trip length — longer trips = higher risk

• Level of cover — higher limits mean higher premiums

• Add-ons — such as gadget cover or extreme sports

Typical prices:

• Single trip in Europe: £8–£15 (young adult, no medical history)

• Annual worldwide cover: £40–£80

• Over-70s with pre-existing conditions: £100–£250+

Always compare multiple providers. Use a site like MoneySuperMarket, Compare the Market, or GoCompare.

What to Look for in a Good Travel Insurance Policy

• £5 million+ medical expenses cover

• £1,500+ cancellation cover (or the value of your trip)

• Baggage cover of £1,000+

• 24/7 emergency helpline

• Cover for COVID-19 or pandemics (many now include this)

• Optional extras like gadget, car hire excess, or cruise cover

Unique Tip: Some insurers offer “travel disruption cover” — valuable if you're travelling during strike periods or political unrest. This can include additional transport or accommodation if your original plans fall through.

FAQs: Do I Need Travel Insurance?

Is travel insurance a legal requirement?

No, it’s not legally required — but many tour operators and visa applications do require proof of insurance.

Does travel insurance cover COVID-19?

Most policies now include COVID-related cover, including cancellation due to testing positive, quarantine, or medical treatment abroad. Always confirm the exact terms.

When should I buy travel insurance?

Ideally, buy it at the same time as you book your holiday. This means you're protected straight away if you need to cancel before departure.

Will my credit card provide travel insurance?

Some premium credit cards offer limited cover, but it's usually basic and may not cover medical emergencies. Always check the policy and consider topping up with standalone insurance.

Can I get travel insurance with a pre-existing condition?

Yes, but you must declare it. Some providers specialise in cover for pre-existing medical conditions, though premiums may be higher.

Final Thoughts

Travel insurance isn’t just an optional extra — it’s a must-have if you’re travelling abroad, and it’s a smart move for many UK holidays too. The potential cost of going without far outweighs the price of a policy, especially with the unpredictability of cancellations, illness, or lost items.

Always buy your policy as soon as you book your trip — this ensures you’re protected in case you need to cancel beforehand.

Take time to compare quotes, check the small print, and tailor your cover to your specific holiday plans. With the right policy in place, you can travel confidently knowing you're financially protected if something goes wrong.

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