7 questions to ask yourself when buying travel insurance – Which? News

Almost a quarter of holidaymakers (22%) buy the cheapest travel insurance they can find. 

That’s according to a survey taken this February of 1,000 holidaymakers by Multitrip.com, a specialist travel insurance provider. 

The survey also found that only three in 10 people (29%) do a lot of research, while only a third (33%) check their policy covers the cost of their holiday, luggage and contents. 

But only thinking about price when you buy travel insurance could land you with an expensive bill abroad, if there’s a gap in your coverage, or an exclusion applies.

To make sure you get the correct cover, here are seven questions you should ask when buying your travel insurance policy.

1. Is cancellation covered?

For many travellers, a warning from the Foreign, Commonwealth and Development Office (FCDO) against visiting a destination is enough to cancel even the most anticipated trip. 

But would your insurance policy pay for costs you couldn’t recover?

Most travel policies (80%) cover cancellations due to natural disasters like volcanic eruptions or earthquakes, either as standard or an optional add-on.

However, other scenarios are often excluded. For instance, 44% of policies don’t cover cancellations due to civil unrest or terrorism, and 65% exclude war. Coverage for FCDO warnings due to pandemics is rare (20%), and many policies exclude Covid.

This can be easy to miss because exclusions listed in specific sections (like ‘cancellation’ or ‘delays’) are often further limited by the ‘general exclusions’ section, which applies across the entire policy. 

Be sure to check these general exclusions and compare them to what’s implied elsewhere in the policy wording. This will prevent any unpleasant surprises if you need to make a claim.

• Find out more: Best travel insurance 

2. Does your policy cover missed departure?

You can claim on about 93% of policies if unexpected transport delays cause you to miss your flight. 

However, if you need coverage for outgoing, connecting, and return flights (such as on a complex long-haul journey), only 43% of policies offer what you need. Missed connections can be costly and stressful, especially on long trips with multiple flights. 

Comprehensive coverage for all legs of your journey ensures you won’t be left stranded and out of pocket due to unforeseen delays. 

3. Did you declare medical conditions?

When buying travel insurance, keeping quiet about any existing health issues might be tempting. 

Not telling the truth about your health could mean your insurance is invalid if something goes wrong. That leaves you on the hook for medical bills, which can add up fast, potentially costing tens of thousands of pounds.

Unfortunately, our survey in March 2023 showed that 36% of people with medical conditions struggled to get cover. They often found premiums too expensive, meaning they had to shop around more to find a policy that suited their needs and budget.

There are insurance companies that specialise in covering people with existing health conditions. If you’ve been sick or have a long-term condition, you can find help in our guide on the best travel insurance for pre-existing medical conditions. 

• Find out more: Best travel insurance for pre-existing medical conditions

4. How are your excesses calculated?

When you look at your policy, you’ll usually find details about the excess. But it’s not just about the cash amount – there’s more to it. 

Excesses are typically per person in a claim. Let’s say a family of four has to cancel a holiday, and the excess is £98. They’d need to pay £392 towards the claim. 

With a third of policies, the number of times an excess is applied is capped to twice, which in our example would mean a much lower total excess of £196. 

Understanding how excesses are applied can help you avoid unexpected costs if you need to claim. 

• Find out more: How to claim on your travel insurance 

5. Are you covered if your holiday firm goes bankrupt?

We found that not many policies cover what’s called ‘end supplier failure,’ which means getting compensation if a company goes bankrupt and you lose money. 

Only 12% of policies cover holiday company bankruptcy, and just 10% cover airline failure.

Fortunately, if you booked a holiday package in the UK or paid by credit card, there are other financial protections in place. 

6. Would you be better off buying an annual policy?

When choosing between annual and single-trip travel insurance, the key is to consider your travel habits and factors like how often you travel and where you go. 

If you travel a lot, especially on longer trips, an annual policy could save you a lot of money. Even if you only take two trips a year, an annual policy might still be cheaper.

The exception is if you’re over 70, where you may find your choice of annual policies disproportionally reduced (though consider getting insurance as part of a packaged bank account).

It’s best to run quotes for both annual and single-trip policies, using reliable comparison sites like Confused.com, Go.Compare or Compare the Market to get an idea if an annual policy offers better value for your trips. 

Sometimes, due to the quirks of travel insurance pricing, you may find a cheaper quote for an annual policy, particularly for longer trips, making it worth considering.

• Find out more: Best travel insurance for seniors

7. Can your insurer be trusted?

If your insurer isn’t reliable, your coverage doesn’t mean much. 

Recent Financial Conduct Authority (FCA) statistics show single-trip travel insurance had one of the lowest claim acceptance rates in 2022 at 73%, with European and worldwide annual policies only slightly better at 76% and 82%. In contrast, most other types of insurance had over 90% of claims accepted.

Travel insurance also performed poorly in the latest Financial Ombudsman Service (FOS) data, with 44% of complaints upheld between October and December last year, second only to payment protection insurance (PPI). Our analysis of 2,933 FOS decisions on travel insurance from 2019 to 2023 shows increasing stress in interactions, with ‘distress and inconvenience’ cited in 71% of upheld cases in late 2023.

We’ve only awarded ‘Best Buy’ status to policies where the insurer meets certain standards for accepting claims and uphold rates.

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