Travel insurance is the exception to the usual rule that “insurance is rarely worth it in expected value terms”. For most insurance products, the maths favours the insurer. For travel insurance, the catastrophic downside risk relative to the small premium cost means the maths favours the buyer — especially for long-haul or US travel.
Why Travel Insurance Is Different
The reason most insurance policies aren’t great value is that the insured risk is bounded — your phone costs £800 to replace, your car is worth £15,000. With travel insurance, the risk is essentially unbounded:
| Medical emergency scenario | Estimated cost without insurance |
|---|---|
| Emergency appendix surgery (USA) | £30,000–£100,000 |
| Medical evacuation flight home from USA | £50,000–£200,000 |
| ICU stay and repatriation from Thailand | £40,000–£120,000 |
| Emergency treatment and repatriation from Europe | £5,000–£30,000 |
| Broken leg, hospital, and repatriation (Spain) | £10,000–£25,000 |
An annual travel insurance premium of £80–£150 provides protection against costs that would bankrupt most UK households. This is precisely the kind of risk that insurance is designed for — low probability, catastrophic magnitude.
What Travel Insurance Costs
Single trip policies (2026 estimates, per person):
| Destination | Basic cover | Comprehensive cover |
|---|---|---|
| Europe, up to 2 weeks | £10–£20 | £20–£40 |
| Worldwide (exc. USA) | £20–£35 | £35–£60 |
| Worldwide (inc. USA/Canada) | £25–£50 | £50–£100 |
Annual multi-trip policies (per adult, 2026):
| Cover level | European trips only | Worldwide inc. USA |
|---|---|---|
| Basic | £30–£60 | £60–£120 |
| Standard | £60–£100 | £100–£180 |
| Comprehensive | £100–£180 | £150–£300 |
Family annual cover: approximately 1.5–2× individual adult rate (not proportional — a common saving). A family of four taking two European holidays per year typically finds annual family cover (£80–£200) cheaper than four single-trip family policies.
What Comprehensive Cover Should Include
Minimum cover to look for:
| Cover type | Minimum recommended |
|---|---|
| Emergency medical treatment | £2m (Europe), £5m (USA) |
| Emergency repatriation | Included (not a separate limit) |
| Cancellation / curtailment | £3,000–£5,000 per person |
| Baggage and personal belongings | £1,500–£3,000 |
| Personal liability | £1m minimum |
| Emergency dental | £250–£500 |
| Travel delay | £200+ after 12 hours |
The GHIC Misconception
Many UK travellers still assume the Global Health Insurance Card (GHIC — the post-Brexit EHIC replacement) removes the need for EU travel insurance. It does not.
The GHIC gives you access to state healthcare in the EU at local resident rates. This means:
- You pay what a local would pay — which in countries like France and Germany means you still pay co-payments (up to 30% of treatment costs)
- You get state hospital treatment — not private, not repatriation
- You get nothing outside the GHIC country list — no cover in USA, Canada, Australia, Asia, Middle East
Travel insurance covers what GHIC doesn’t: repatriation, private treatment, cancellation, baggage, and all non-EU travel.
Pre-existing Conditions — The Trap to Avoid
The most common reason UK travel insurance claims are declined: non-disclosure of a pre-existing medical condition.
You must declare: Any condition you have received treatment for, take regular medication for, or have been referred to a specialist about in the past 2–5 years (depending on the insurer). This includes: diabetes, heart conditions, high blood pressure, cancer (past or present), mental health conditions, and musculoskeletal problems.
Declaring pre-existing conditions often increases your premium. But the alternative — non-disclosure — invalidates your entire policy if a claim arises from or is related to that condition. Given that medical emergencies often relate to underlying health conditions, this is a high-risk strategy.
Specialist providers for pre-existing conditions: AllClear, Free Spirit, and InsureandGo offer policies specifically for people with pre-existing conditions, often at reasonable premiums.
Credit Card Travel Insurance — Not a Substitute
Some premium credit cards include travel insurance as a benefit (American Express Platinum, Barclays Premier). This can be a good deal — if the coverage is comprehensive and you read the small print. Common limitations:
- Coverage only applies if you book travel on the card
- May not cover pre-existing conditions
- Medical limits are often lower than standalone policies
- May exclude winter sports, adventure activities, or specific destinations
Read the card’s certificate of insurance (not the marketing summary) before relying on it.
Verdict
| Traveller type | Verdict |
|---|---|
| Anyone travelling internationally | ✅ Always buy travel insurance |
| UK-only traveller | ❌ Not needed (NHS covers you at home) |
| Travelling to USA/Canada | ✅ Essential — medical costs are catastrophic |
| Travelling to EU with GHIC | ✅ Still essential — GHIC covers only part of the risk |
| Pre-existing conditions | ✅ Declare and buy specialist cover |
| Annual multi-trip (2+ trips/year) | ✅ Buy annual policy, not singles |