As a financial safety net, travel insurance is primarily designed to cover the cost of receiving emergency medical treatment abroad, which can run into tens or even hundreds of thousands of pounds.
Medical expenses were the most common reason for a travel insurance claim in 2024 and made up 34% of all claims – up from 29% in 2023.
In 2024, the total value of medical claims reached £262 million, with an average payout of £1,528. However, individual claims can be significantly higher, particularly when factoring in the cost of complex treatment overseas and repatriation to the UK, if needed.
In fact, one of our members paid out more than £1 million to a customer who was admitted to hospital for emergency treatment in the USA and who required repatriation back to the UK.
Fraser Lyall, Policy Adviser for General Insurance at the ABI, said: “With summer at its peak, there’s no better time to prepare a packing list for your next getaway. While suncream and passports will certainly be necessary, travel insurance is one other essential that shouldn’t be overlooked. Travel insurance can offer you peace of mind, knowing that you’re covered for things like emergency medical care should you fall ill or suffer an injury abroad. Be sure to read the full terms and conditions and disclose any pre-existing medical conditions to make sure you have the right cover for you needs, and speak to your insurer if anything is unclear.”
With the latest data underlining how important travel insurance is, the ABI is encouraging holiday makers not to forget their ‘Eight to Embark’ to protect themselves and their loved ones when abroad.
The ABI’s ‘Eight to Embark’
1. Buy before you fly (even better, when you book). As always, we urge travellers to buy travel insurance when they book their trip, and not leave it to the last minute. Taking out a travel insurance policy when you book your holiday can ensure you’re covered should the trip need to be cancelled. Buying insurance when you’re already overseas risks invalidating the policy and may prevent you from making a claim. While it is possible to buy specialist post-departure travel insurance when you’re already abroad, it’s best to play it safe and buy your cover before your trip starts.
2. Consider your needs, not just price. Though it may be tempting to add the cheapest travel policy to your cart, it’s important to buy insurance that meets your needs. For example, if you’re looking for adventure, certain hazardous activities, such as sailing or scuba diving, are likely to be excluded from a typical policy. Your insurer may offer additional cover to meet your needs, so be sure to ask them about your options.
3. Double check your policy. If you usually skip the small print, this one’s for you. When taking out travel insurance, it’s crucial to read your policy terms and conditions to fully understand the limits of your cover. Insurers expect travellers to take reasonable steps to protect themselves from harm. For example, an injury that occurs as a result of excessive alcohol consumption is unlikely to be covered. If you still have questions after reading your policy, speak to your insurer, who will be able to help.
4. Disclose pre-existing medical conditions. The biggest cost that travel insurance is designed to cover is for emergency medical treatment that might be needed overseas. That’s why it’s vital to tell your insurer about any and all pre-existing medical conditions, prescribed medications or treatments when applying for cover. Failing to do so could invalidate your policy or cause issues should you need to make a claim. Insurers will also want to know about conditions you’ve had in the past, depending on the condition and how long ago you had it. This requirement may vary between providers, so if you're not sure whether to disclose something, we'd recommend checking with your insurer. It’s important to note that physical, mental and neurodevelopmental conditions should all be declared when taking out travel insurance. More information about accessing travel insurance with pre-existing medical conditions is available here.
5. Know before you go. Always check current FCDO advice before going on holiday, especially since travelling against this advice is likely to invalidate your insurance policy. If the advice changes once you are abroad – fear not – your cover will continue as normal. But be sure to follow all local health and safety advice.
6. Understand your rights. If your trip has been disrupted or has had to be cancelled, you may be legally entitled to compensation or refunds directly from your airline, accommodation provider, tour operator or credit card provider. If you have travel insurance that includes cover for trip disruption, you may be able to claim for unrecoverable losses as a result of delays, cancellations or other disruptions outside of your control.
7. Pack your EHIC or GHIC. For trips to Europe, don’t forget to bring your European Health Insurance Card (EHIC) if you have one. If you don’t have an EHIC, or your EHIC has expired, you can now apply for a Global Health Insurance Card (GHIC) through NHS online. While these cards entitle you to access state-provided healthcare when visiting the EU (and some other countries), they won’t cover all medical costs or the cost of emergency repatriation back to the UK – so travel insurance is still essential.
8. Know how to claim. Perhaps the most important thing to know before you go on holiday is how to make a claim on your travel insurance. Be sure to read your policy to understand this process, and keep your travel insurer’s emergency contact details with you just in case. You should also share your policy details with someone you’re travelling with and a trusted friend or family member back home in case they need to contact your insurer on your behalf.
If something has gone wrong on your trip and you need to make a claim, be sure to save relevant photos, medical bills, receipts, booking reference numbers and police reports (if applicable) as your insurer may ask for these to process your claim.
For more information, check out our travel insurance FAQs.
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