What are the different types of Travel Insurance?

What are the different types of travel insurance?

There are several different types of travel insurance, and it’s important to choose the right policy to protect your holiday. You should consider your holiday destination and the activities that you will take part in, as this will affect which policies are most suitable for you.

Main types of travel insurance:

• Domestic travel insurance (UK)
• European travel insurance
• Worldwide travel insurance (excluding USA)
• Worldwide travel insurance (including USA)

When it comes to travel insurance, there isn’t a ‘one size fits all’ policy that will work for every holiday. Some policies will only cover specific destinations, and others offer specialised cover for certain activities (e.g. winter sports cover). You also need to think about whether you only need cover for yourself, or if you want your policy to protect your partner or children too.

In this guide, our insurance experts explain everything you need to know about all of the main types of travel insurance that are available for UK holidaymakers.

60 Second Summary – What are the different types of travel insurance?

There are a lot of options when buying travel insurance, and it can be hard to work out which type of policy is right for you. Here’s a quick summary of the key types of travel insurance that our experts have mentioned in this guide and what each type of policy does.

• Single Trip Travel Insurance: Covers you for one specific trip, and the maximum length of the trip will depend on the insurer.
• Annual Travel Insurance: Covers multiple trips within a 12-month period, which can be a cheaper and easier option if you travel a lot or have multiple holidays booked.
• European Travel Insurance: Provides cover for trips within Europe and you should check to make sure that your destination is covered as some policies will exclude specific countries.
• Worldwide Travel Insurance: Covers holidays outside of Europe and is often divided into categories like ‘Worldwide travel insurance excluding USA’.
• Domestic (UK) Travel Insurance: Provides travel cover for holidays or ‘staycations’ within the UK (trips of two nights or longer).
• Cruise Travel Insurance: Offers specialised cover for cruise-related issues like missed ports or unused excursions.
• Winter Sports Travel Insurance: Provides extra protection for high-risk winter sports activities and can also cover equipment (e.g. snowboard).
• Over 50s Travel Insurance: Many insurance companies offer tailored travel insurance policies for travellers aged 50 and older.

How many types of travel insurance are there?

There are a lot of different options for travel insurance, and each type of policy will offer a different level of cover. While there are key differences between each type of travel insurance, there are standard benefits that will be included in most policies, such as:

• Emergency medical expenses cover.
• Repatriation cover (if you need to return home due to medical reasons).
• Cover for trip cancellation or curtailment.
• Cover for loss or theft of personal belongings.
• Cover for travel delays and missed departures.
• Personal accident cover.
• Personal liability and legal expenses cover.

Here, our insurance experts explain what each type of travel insurance does, what you will be covered for, and the key benefits of each type of cover.

Single trip travel insurance

Single trip travel insurance is one of the main types of travel cover for UK holidaymakers. As the name suggests, your policy will cover you for one specific trip and you will need to tell the insurer when and where you are travelling to when you apply.

The length of time that you can be covered will depend on the insurance company that you choose. Some insurers might limit your trip to 30 days maximum, and others can cover trips that are several months long.

The price of single trip travel insurance is often very reasonable, with prices starting around £10 for a 1 week trip to a European destination. The cost will vary based on the exact details of your trip and your chosen insurance provider.

Annual travel insurance

Annual multi trip travel insurance will cover you for multiple trips within one year (12 months) of the start of your policy. This is particularly useful if you’ve got several holidays planned or if you often travel for work.

While your policy will cover you for multiple trips within 12 months, you usually won’t be covered for every possible destination. When you buy an annual travel insurance policy, you will be asked if you want European travel cover or Worldwide travel cover. Consider the options carefully and double check which countries are covered under each type of policy, as this can vary between insurance companies.

Like single trip travel insurance, there might be a limit for how long each of your trips can be. It’s always important to read your policy documents carefully to make sure that all of your holiday destinations and trip lengths are covered.

European travel insurance

When you buy travel insurance, you will need to let the insurer know which country or countries you are travelling to. This applies whether you are buying a single trip policy or an annual multi trip policy. European travel insurance will cover you for holidays in most European destinations. Selected policies will even cover nearby destinations like Egypt and Turkey.

You might be surprised to find that some European travel insurance policies won’t cover common holiday destinations like Spain or the Canary Islands. Every insurance company works slightly differently, so you should make sure that your destination is definitely covered.

Worldwide travel insurance

Some travellers get confused and assume that worldwide travel insurance will cover them in every country in the world. Worldwide travel insurance won’t cover trips to Europe but will cover you in most destinations outside of Europe.

Most travel insurance companies split their worldwide travel insurance policies into two categories:

• Worldwide travel insurance (including the USA Canada and the Caribbean)
• Worldwide travel insurance (excluding the USA Canada and the Caribbean)

The reason for this is that healthcare tends to be more expensive in countries like America and Canada.  The cost of policies that cover these countries tends to be slightly higher to ensure that you have the right level of medical cover.

Note: Certain insurers might change the countries that they specify to USA, Canada, and Mexico rather than the Caribbean.

Domestic (UK) travel insurance

It can still be helpful to have travel insurance if you are planning a holiday within the UK to protect you if anything goes wrong. Most European travel insurance policies will also protect you for travel within the UK, and they might be labelled as ‘Europe including UK’ when you apply.

Domestic travel insurance (or UK holiday insurance) will cover you if you are staying overnight for more than two nights in booked accommodation (e.g. a hotel or bed & breakfast). You can still claim for a variety of reasons, such as lost/stolen belongings or having to cut your trip short due to illness.

UK staycations have become increasingly popular over the last few years, especially following the travel restrictions caused by the COVID-19 pandemic. Holiday budgets have also been tighter, meaning that some couples and families don’t have the budget to travel abroad.

Cruise travel insurance

There are specific issues that could go wrong when you’re on a cruise holiday compared to a standard holiday. If you’re going on a cruise and buy a typical travel insurance policy, you might find that you’re not covered if you need to claim for something like cabin confinement.

A lot of travel insurance companies offer specific cruise travel insurance policies or the option to add cruise cover onto their standard policies. In most cases, you will also be covered in each country that you travel to during your cruise.

Winter sports travel insurance

Certain high-risk activities like skiing or snowboarding might not be covered under a standard travel insurance policy. Winter sports travel insurance will cover a wide range of sports and activities, and you can often cover any equipment you are taking as well.

You would also be covered for specific scenarios like piste closures or avalanches. You may not always find insurance policies specifically designed for winter sports, but many insurers offer the option to add winter sports cover to their policies.

Note: If you know that you will be taking part in high-risk activities or sports, it’s always best to check your policy documents and confirm that you are covered for them. If you aren’t, your policy might not pay out if you are injured or need to claim for related reasons.

Over 50s travel insurance

Many top travel insurance companies in the UK will offer travel insurance to people aged 50 and older. Some insurers will even offer cover past age 90 and claim to have no age limits for their policies.

The price of travel insurance is generally higher for over 50s, so it’s important to shop around to find the cheapest quotes. In some cases, it can be cheaper to buy annual travel insurance, and this is also useful if you have more than one holiday booked.

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What is the best type of travel insurance?

There isn’t one ‘best’ type of travel insurance that will work best for everybody, as every traveller will need something different from their policy. The most important thing is to choose the best travel insurance policy for you and your holiday.

One of the main things to think about is whether you need travel insurance for yourself or for a larger group of family or friends. All travel insurance companies offer the option of individual cover or cover for multiple people (up to 10 maximum in most cases).

You can choose between:

• Individual travel insurance: This type of travel insurance will only provide travel cover for you and won’t cover anyone else that you are travelling with. This can be cheaper for you if you are the youngest traveller, or if they have pre-existing medical conditions and you don’t.
• Couples travel insurance: Couples often find it more convenient to get one policy rather than managing two separate travel insurance policies. This option can be cheaper, and you should still receive the same level of cover and the option to add on extra benefits.
• Family travel insurance: Family travel insurance usually offers cover for adults and children who live at the same address. The children who are covered must be under 18 years old, but many insurers allow you to cover up to eight children if needed.
• Group travel insurance: Group travel insurance works similarly to family travel insurance but you don’t need to live at the same address. This can be useful if there’s a group travelling for work or you’re going on holiday with some friends.

What is the best type of travel insurance for pre-existing conditions?

Certain travel insurance companies will be better and cheaper than others for people who have medical conditions. Your health won’t usually affect the type of travel insurance that you can get. You should still be able to choose between single trip cover, annual cover, worldwide cover, European cover etc.

The main thing that can be affected is the price of your travel insurance, which is why it’s important to compare your options carefully. You might find that you could save £100’s by applying to the right insurer, or by opting for annual cover instead of single trip for example.

If you’re struggling to find suitable travel insurance with pre-existing medical conditions, you can CLICK HERE to use our medical travel insurance comparison tool. This allows you to compare best and cheapest quotes from a wide range of mainstream and specialist insurance companies.

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What type of travel insurance should I get?

When buying travel insurance, you need to choose a policy that provides the right level of cover and policy benefits based on your trip. You might want a policy that covers specific activities (e.g. Winter sports cover).

Ultimately, you should think about how much you can afford to spend and how much you might pay if something went wrong during your trip. Most types of travel insurance offer similar benefits, but some will cover additional scenarios or will pay out more if you need to claim.

MoneyHelper has a handy guide which explains some of the key features that good travel insurance policy should include. They have split this up into ‘must have’ benefits, ‘should have’ and ‘could have’ benefits. Our insurance experts will put together a brief summary of the key points from the MoneyHelper guide below.

Travel insurance ‘must have’ benefits

• At least £1million emergency medical cover (£2million or higher if you’re travelling to America, Canada, or the Caribbean).
• All good travel insurance policies should include repatriation cover in case you need to return home due to medical reasons.
• £2,000 cover or higher for trip cancellation or curtailment.

Travel insurance ‘should have’ benefits

• Dental emergency cover (£250 or higher).
• Cover for lost or damaged/stolen money or personal documents (e.g. passport).
• Full cover for loss of holiday or curtailment due to acts of terrorism.

Travel insurance ‘could have’ benefits

• Option to add on additional benefits like winter sports cover, cruise cover, or gadget cover.
• Additional cover that protects you if your airline goes out of business (scheduled airline failure).

How do I choose the right type of travel insurance for me?

The simplest way to compare different types of travel insurance is by using an online price comparison tool. These systems allow you to quickly compare multiple policies, and easily switch between single trip and annual travel cover.

You will usually be shown a brief summary of the benefits included in each policy to help you compare insurers and find the policy that offers the best value for money. You can CLICK HERE to quickly compare the best and cheapest travel insurance quotes from top insurers like Post Office, Ageas, and Esure.