Holiday Insurance

Planning a holiday is exciting—whether it’s a beach getaway, a ski trip, or a cultural escape. But while you pack your bags and book your flights, there’s one essential item that often gets overlooked: holiday insurance. Also known as travel insurance, holiday insurance protects you financially against unexpected problems while you’re away from home.

From medical emergencies and trip cancellations to lost luggage and flight delays, the right holiday insurance policy can save you from significant stress and financial loss. In this 2025 guide, we break down everything you need to know about holiday insurance, including what it covers, how to choose the best plan, and tips to save money.

Holiday Insurance

🌍 What is Holiday Insurance?

Holiday insurance is a type of travel insurance policy designed to protect you during domestic or international trips. It provides financial coverage for a wide range of travel-related issues, such as:

• Trip cancellations

• Medical expenses

• Lost or stolen belongings

• Travel delays

• Personal liability

Whether you’re travelling for a few days or several weeks, having holiday insurance gives you peace of mind that you’re covered if something goes wrong.

🛡️ What Does Holiday Insurance Cover?

Coverage varies by provider and plan, but most comprehensive holiday insurance policies include:

✅ 1. Medical Expenses Abroad

• Covers emergency treatment, hospital stays, ambulance services

• May include repatriation to your home country

• Some policies include dental emergencies

✅ 2. Trip Cancellation or Curtailment

• Reimburses you if you have to cancel your trip due to illness, injury, bereavement, or other valid reasons

✅ 3. Lost, Stolen, or Damaged Luggage

• Covers your belongings, passport, and important documents

• May include coverage for delayed baggage

✅ 4. Travel Delays and Missed Connections

• Compensation for delayed or cancelled flights

• Covers accommodation and meal costs during the wait

✅ 5. Personal Liability

• Covers legal costs if you accidentally injure someone or damage property

✅ 6. Covid-19 Related Coverage (Now common in 2025 policies)

• Medical treatment and quarantine expenses

• Cancellation if you test positive before travel

Also read on: Why do people buy Insurance

❌ What’s Not Covered? (Common Exclusions)

While holiday insurance offers broad protection, it’s important to know what’s not covered:

• Pre-existing medical conditions (unless declared)

• Risky or extreme sports (unless you purchase extra cover)

• Travelling against government advice

• Alcohol or drug-related incidents

• Lost items left unattended

Always read the policy documents carefully to understand specific exclusions.

✈️ Types of Holiday Insurance Policies

🏖️ 1. Single Trip Insurance

• Covers one trip (up to 90 days typically)

• Ideal for short-term travellers

🌍 2. Annual Multi-Trip Insurance

• Covers unlimited trips within 12 months

• Great for frequent travellers or business trips

👨‍👩‍👧 3. Family Holiday Insurance

• Covers two adults and their children under one policy

• Often includes discounts for kids

🎒 4. Backpacker or Long-Stay Insurance

• Tailored for extended travel (gap years, working holidays)

• May include cover for multiple destinations

🏂 5. Specialist Holiday Insurance

• Winter sports (skiing, snowboarding)

• Cruise holidays

• Adventure sports or high-risk activities

• Senior travel insurance (age-specific policies)

💷 How Much Does Holiday Insurance Cost?

Prices vary based on:

• Your age

• Destination

• Length of trip

• Type of cover

• Pre-existing medical conditions

💡 Average Holiday Insurance Costs in 2025 (UK):

Tip: Buying early can lock in better rates and give you cancellation cover immediately.

💡 How to Choose the Best Holiday Insurance in 2025

With so many options, here’s what to look for when selecting the best holiday insurance:

1. Check the Coverage Limits

Make sure the policy covers:

• At least £1 million for medical expenses (UK recommendation: £5 million)

• £2,000+ for trip cancellation

• £1,000+ for lost luggage

2. Read the Fine Print

Always understand:

• Policy exclusions

• Claim procedures

• Excess amounts (the part you pay toward a claim)

3. Look for Covid-19 Protection

Most 2025 policies now include Covid-19, but check specifics:

• Does it cover cancellations due to infection or isolation?

• Does it include testing and treatment costs abroad?

4. Compare Providers

Use comparison tools like:

• Compare the Market

• GoCompare

• MoneySuperMarket

5. Consider Specialist Cover

If you’re doing activities like skiing, scuba diving, or volunteering, you may need extra coverage.

🏆 Top Holiday Insurance Providers in 2025 (UK)

🔒 Is Holiday Insurance Mandatory?

Holiday insurance is not legally required, but many:

• Airlines

• Cruise operators

• Tour companies

• Visa authorities (e.g., Schengen area)

require proof of travel insurance before departure. Even when not required, it’s strongly recommended for all travellers.

📝 How to Make a Claim on Holiday Insurance

1. Contact the Insurer ASAP

   • Use the emergency contact number in your policy

2. Provide Documentation

   • Medical reports

   • Police reports (if stolen)

   • Receipts or proof of purchase

3. Submit Claim Forms

   • Usually done online or via post

   • Processing times vary (typically 7–30 days)

4. Keep Copies of Everything

   • Including emails, receipts, and forms

📱 Top Tips for Using Holiday Insurance Wisely

• 📅 Buy Early: Start your policy the day you book—not the day you travel

• 🧾 Declare All Medical Conditions: To avoid claim rejection

• 🔒 Use Secure Luggage: Theft claims may be rejected if belongings were left unattended

• 🌐 Download Your Policy Documents: Keep a copy on your phone or email

• 📞 Know Emergency Contacts: Add them to your phone before you travel

📚 Frequently Asked Questions (FAQs)

❓Do I need holiday insurance for Europe if I have a GHIC card?

Yes. The GHIC only covers limited public healthcare in the EU—it won’t cover private treatment, repatriation, cancellations, or theft.

❓Can I get holiday insurance with a pre-existing medical condition?

Yes, many insurers offer cover for conditions like asthma, diabetes, or high blood pressure—just be sure to declare it upfront.

❓Can I get holiday insurance for multiple people?

Yes. You can buy family, group, or couples policies which are often more cost-effective than individual cover.

❓What’s the best time to buy holiday insurance?

As soon as you book your trip. This gives you cancellation protection right away.

🏁 Conclusion: Don’t Travel Without Holiday Insurance

Your holiday should be relaxing—not stressful. Investing in a good holiday insurance policy ensures that you’re financially protected if anything goes wrong. From flight delays and stolen bags to medical emergencies and unexpected cancellations, the right insurance can save you thousands of pounds—and give you peace of mind.