How Much Travel Insurance Do You Actually Need?

The right amount of travel insurance depends entirely on your specific holiday. Generally, your cancellation cover should at least match the total cost of your trip per person (including at least flights, accommodation and pre-paid excursions). Your personal belongings cover should reflect the value of the items you take, and your emergency medical cover should be enough to protect you against high overseas healthcare costs.

Booking a holiday is an exciting time. After spending hours choosing the perfect location and finding a great hotel, you simply want to relax and look forward to your break. However, guessing your level of travel insurance protection can lead to severe financial trouble if things go wrong.

When you buy travel insurance, you might be tempted to pick the cheapest policy to tick a box. But if you fall ill abroad or need to cancel your trip unexpectedly, a basic policy might leave you significantly out of pocket. We know that nobody wants to spend their time deciphering confusing insurance documents, which is why we are here to help you get it right from the start.

This guide will break down exactly how to determine the right amount of travel insurance protection for your specific trip. By taking a few moments to understand your needs now, you can travel with confidence, knowing you are properly protected.

What Are the Main Types of Travel Insurance Cover?

To make sure you get the holiday you want and deserve, it helps to understand what makes up a comprehensive travel insurance policy. Here is a breakdown of the core elements and how to calculate the right limits.

Cancellation and Curtailment Cover

Trip cancellation and curtailment cover protects the money you have already spent if you cannot go on your holiday, or if you need to cut it short due to an unforeseen event.

READ MORE: What is Cancellation Cover? | Guide to Curtailment Cover

How much Cancellation cover do you need?

As a general rule, your cancellation cover must be at least the total per-person cost of your holiday. You need to calculate the combined price of your flights, accommodation, and any pre-purchased excursions or car hire.

Underestimating this amount is a common mistake that leaves travellers partially unprotected. Additionally, overestimating this amount can also lead to purchasing a more expensive policy, with additional cover that is not needed.

Most travel insurance policies provide cancellation cover on a per-person basis, meaning that if your holiday costs £2,000 for two people, you would need to find a policy that provides cancellation cover of at least £1,000 per person (and ensure all travellers are included within the policy).

Personal Belongings Cover

Personal belongings protection covers you if your luggage is lost, stolen, or damaged during your trip. This typically includes things like clothes, toiletries and anything you would usually pop into your suitcase.

Bear in mind, things like gadgets or high-value items (like jewellery) are not always included as standard. Always check your policy wording to see what is covered.

READ MORE: Personal Belongings Cover

How Much Personal Belongings Protection Should You Get?

To estimate your needs, make a quick inventory of your packing list. Consider the cost of replacing your clothes, toiletries, and suitcase. Also, look out for the "single item limit" in your policy documents. This is the maximum amount an insurer will pay for one specific item.

Don't forget, if you plan to take an expensive camera or a high-end smartphone, you may need to include Gadget cover within your policy for it to be covered.

READ MORE: What is Gadget Cover?

Emergency Medical and Repatriation Cover

Emergency medical cover is the most critical part of any travel insurance policy. If you have an unexpected illness or injury abroad, you want to focus on getting better, not on how you will pay the hospital bill.

READ MORE: What is Covered by Emergency Medical Cover?

Emergency medical protection will also help cover the costs of getting you home if you’re too unwell to travel on your own. This is known as repatriation cover.

READ MORE: Guide to Repatriation Cover

What is the Right Amount of Emergency Medical Cover?

No one can make a completely accurate estimate of how much emergency medical protection would be needed should the worst happen, as each emergency is unique. However, there are a few things to consider that can help:

Destination: Make sure you take into account your holiday destination when trying to estimate how much protection you need. The cost of medical treatment abroad can easily run into tens or hundreds of thousands of pounds, particularly in countries like the USA, Canada, and the Caribbean. Even places like Spain can be more expensive than you'd think.

Repatiration: Whilst hard to determine how much it would cost to get you home, make sure you take in to acocunt the geographical location of your holiday destination to the UK. For instance, if you are heading to France, it would be significantly cheaper to get you home than from somewhere like Japan or the USA.

Pre-existing Medical Conditions: If you have a pre-existing medical condition, you may need to take into account things like replacement medications (should they be lost or stolen) or the potential costs should you have an unexpected flare-up and need to head to the hospital for help.

GHIC/EHIC: It is also vital to distinguish between travel insurance and reciprocal healthcare agreements like the Global Health Insurance Card (GHIC). While the GHIC gives you access to state-provided healthcare in certain European countries, it does not cover private treatment, air evacuation, or repatriation home. Additionally, even with the GHIC, you still may be required to pay a portion or the full amount for some treatments or medications.

READ MORE: EHIC, GHIC & Travel Insurance

How Do You Tailor Travel Insurance to Your Holiday?

To build a policy that gives you total peace of mind, you need to match your cover to your travel habits.

Consider your location: Healthcare costs vary wildly around the world. A trip to the USA requires higher medical limits than a short break in France. Ensure your policy explicitly covers your specific destination.

Check your trip duration: Your cover needs to protect your whole holiday, from the exact moment you leave your front door to the moment you step back inside.

Buy at the right time: We recommend the ASAB rule - buy your travel insurance As Soon As you Book. This ensures you are immediately protected against cancellation if you fall unexpectedly ill before you travel.

READ MORE: When to Buy Travel Insurance?

Enjoy True Peace of Mind on Your Next Holiday

Taking the time to assess how much travel insurance you need is one of the most important parts of holiday planning. By securing comprehensive medical cover, adequate cancellation limits, and protection for your belongings, you guarantee that an unexpected event will not ruin your finances.

Whatever your age, we are here to ensure you enjoy your future holidays with the right travel insurance cover. Compare quotes today and join millions who've sorted their cover online in minutes.