Demystifying travel insurance: What’s really covered?

Tim Riley, Managing Director at True Traveller, shares his insights into travel insurance.

Travel insurance is one of those things we know we should buy, but most of us never quite read the small print. Cue confusion, myths, and too many people left unprotected when things go wrong. As a travel insurance expert and also an avid traveller – I’ve ventured all over the world, including Australia, the Far East and Nepal – I’m here to set the record straight. From pre-existing medical conditions to baggage cover, here I unpack what’s really included, what isn’t, and how to make sure your policy is fit for your trip.

The big myth: “I’m automatically covered for everything”

It is really important to check your travel insurance for exactly what is covered, as the reality is that most policies have limits and exclusions.

For example, not every policy will cover all the adventure sports or activities that you might be taking part in during your travels.  If you are a winter sports, diving or trekking enthusiast, then these things are unlikely to be included in a ‘standard’ travel insurance policy, especially a ‘free’ one provided by your bank or credit card.

Pre-existing conditions: Declare everything

Declaring a medical condition doesn’t always mean higher costs – but hiding it from your insurer can invalidate claims.

But what do most insurers mean by “pre-existing condition”? Well – this is anything that you are receiving current medication, medical advice or recent treatment for. From weight-loss drugs to depression and anxiety medication, HRT or statins, it is really simple: you must declare it.

Pre-existing medical conditions are scored online according to their severity. This approach works for most conditions; for example, if someone has recovered from a serious illness and has been in remission for a while, they are likely to pay little or no additional premiums.

If in any doubt at all, please speak to your insurer, as many mistakenly think that they can never travel again after a serious medical episode.

And what if your insurer can’t cover you because of an existing medical condition? Well the good news is that specialist providers exist if mainstream cover is tricky, and all insurers have to refer you on to someone who can provide cover.

Cancellations & delays: Other avenues for compensation

Travel insurance is intended to make sure you are not out of pocket, but it is not your only avenue to claim if you experience cancellations or delays. By law, tour operators and airlines must compensate passengers if they cancel your holiday – due to events, for example, like strikes or fires – and so they need to be the first port of call as travel insurance does not cover costs that are recoverable from these third party suppliers. Importantly, whilst travel insurance doesn’t cover for planned strikes, most policies include some cover for sudden ones.

However, do not just go ahead and cancel your trip yourself, as this will be classed by most insurers as “disinclination to travel” and you will therefore not be covered.  Should your tour operator cancel the trip, then you should seek reimbursement directly, as under the package travel regulations, they are obliged to provide a full refund. Airlines are also obliged to offer a full refund if they cancel their flights.

Fundamentally, I urge you to familiarise yourself with your policy and check between different levels of cover before purchase to make sure you are familiar with what to do due if experiencing any delays or disruption.

Generally, you only have to cancel or curtail your trip as a result of a warning issued by the Foreign Office or the World Health Organisation, so it is a good idea to look out for FCDO issued about where you may be travelling to.

• Shop by value not just price
• Check excess levels
• Always check activity cover lists and upgrade if needed
• If in doubt about a medical condition – declare it
• Keep up-to-date with FCDO destination advice.
• Buy insurance as soon as you book – you then have cancellation cover should you have to cancel your holiday to due illness.
• Annual multi-trip or single trip? Depending on how often throughout the year you travel, an annual multi trip policy may work out more cost effective than a series of single trip policies, as it allows you to have unlimited different trips throughout a 12 month period.
• Check your insurance for medical cover – In the USA and Canada, medical expenses are a lot higher than in Europe. For example, medical costs in the USA very high, with one night in intensive care costing anything up to US$6,000 (£4,400) for one night, and international air ambulance costs going over US$100,000 (£74,000)!

Travel insurance doesn’t need to be daunting. Think of it as peace of mind: you hope you won’t need it, but if you do, it’s invaluable. The key is to match your policy to your trip, declare everything honestly, and read beyond the headlines of cover. With a little preparation, you’ll know exactly what’s included, and can set off on your adventure with one less thing to worry about.