What is travel insurance?

5 August 2026
6 minute read

Travel insurance covers you for financial losses that can happen while you’re travelling. Depending on the provider and plan you choose, it can cover mishaps like lost luggage, missed flights, medical costs and more. 

The cost of your insurance depends on the length of your trip, where you’re going, plus other factors like your age and ongoing health conditions.

Read on to find out all the ins and outs of travel insurance.

How does travel insurance work?

Travel insurance compensates you if you claim for items or events that are covered by your travel insurance policy. How much you’re paid (and when you’re paid) will depend on the criteria laid out in your policy.  

Here’s an example: if you cancel a holiday for a reason that’s covered in your travel insurance policy, you’ll be reimbursed the cost of your insured trip.

Another example is if you have to claim medical expenses while you’re on holiday. Your policy will have a medical expense limit, such as £500,000. This means your insurance may cover certain medical costs up to that amount.

It's important to know that not all travel insurance claims will be accepted, so a payout isn't guaranteed. And, when a claim is accepted, you may have to pay an excess towards the cost of the claim.  

These are just a couple of examples of how travel insurance can work. Now let’s take a look at difference types of travel insurance.

Primary vs secondary coverage

If any part of your travel insurance has primary coverage, it means your provider pays out first.

For example, if your policy’s medical cover is primary, you make your claim directly with your travel insurance provider. They will then directly pay any medical expenses covered by your policy.

If your travel cover is secondary, you’ll need to make a claim with your other relevant insurance providers first – for example, your medical or home insurance. Your travel insurance would then pay any remaining balance that’s not covered by those insurance providers.

Another common example of secondary travel insurance coverage is when baggage or items are lost while travelling. Often, you’ll need to claim via your airline, tour operator or home insurance provider before asking for compensation from your travel insurance provider.

What will your travel insurance cover?

Travel insurance covers events that can happen unexpectedly both before and during your holiday. Depending on your provider and policy, this can include:

• Trip cancellation – If your holiday is cancelled for unforeseen reasons, such as family illness or your holiday provider going out of business.
• Medical emergencies – Covers medical expenses incurred as part of your trip, up to the limit that’s outlined in your policy. For example, doctor fees and hospital bills, plus x-ray and medicine costs.
• Medical evacuation – This covers the cost of being taken to the nearest hospital that’s able to treat you, whether you go by road or air ambulance. It doesn’t cover the cost of the treatment. This might sometimes also cover your return to your home country.
• Travel delay – This compensates you if your flight is delayed because of a reason outlined in your policy – for example, bad weather – that causes you to lose out on, say, a hotel or restaurant booking.
• Trip interruption insurance – This reimburses you for unused expenses if you have to cut your holiday short, as long as the reason for doing so is listed in your travel policy. It also sometimes covers you for a last-minute flight home if you need to get back earlier than expected.
• Missed connections – Covers you if you miss a departure for reasons laid out in your policy.
• Baggage insurance – This will partially compensate you if your baggage is stolen, damaged, lost or delayed while you’re on holiday. Your home insurance may already include this, so it’s worth checking if you’re already covered.

Other travel insurance add-ons

Some travel insurance providers have extra benefits you can add to your policy. These are some of the most common types:

• Gadget cover – Tech like tablets, smart watches or wireless headphones are not usually included within standard baggage insurance. Most insurers let you add gadget cover to your policy for an extra fee.
• Winter and/or adventure sports cover – Most policies don’t include cover for adventure sports like skiing, rock climbing or bungee jumping. You can usually add cover for these activities to your policy for an extra cost.
• Cruise cover –There are some travel risks that are unique to cruise holidays. Cruise cover can offer additional protection against things like missed departures or itinerary changes.
• Golf cover – Adding specific cover for golfing trips will ensure your golf equipment is protected, and you can be refunded for any non-refundable losses due to bad weather or course closure.
• Pet cover – If you’re travelling with your pet, this can cover injury treatment, plus boarding fees if you return home later than expected.
• Rental car damage insurance – This offers compensation if your rental car gets damaged, as long as the cause of the damage is covered by your policy.
• Travel inconvenience – Some policies will reimburse you for small travel inconveniences, like an event cancellation.
• Concierge services – If you fancy a bit of extra assistance while you’re on holiday, some policies offer a concierge service. They can arrange and book transport, meals, tours and much more for you.

What travel insurance doesn’t cover

Standard travel insurance policies don’t usually cover:

• Fear of flying
• Changing your mind
• Natural disasters that start before you buy your policy
• Some last-minute changes (e.g. if your tour route changes and you decide you don’t want to go)
• Bad weather
• Drink or drug-related incidents
• Anything illegal (e.g. driving without a valid licence)
• Medical tourism (e.g. if you travel abroad to get a cosmetic medical procedure)
• Extreme sports and activities (e.g. jet skiing, scuba diving, hang gliding etc.)
• Pre-existing medical conditions
• Routine pregnancy check-ups, pre-natal care, and normal childbirth  

You may be able to add a pre-existing medical condition exclusion waiver to your travel insurance policy. This means you would be reimbursed for certain costs outlined in your policy if your condition flares up and you need treatment while you’re on holiday.

And if you get pregnant after you bought your policy, you might be able to cancel your trip for pregnancy-related reasons. You’ll need to show medical records that prove your pregnancy started after you took out your travel insurance.

Sometimes your age or pre-existing conditions may mean a provider can't offer you cover at all. In this case, you'll need to look for a specialist provider.

How much does travel insurance cost?

The cost of your travel insurance will depend on where you’re going. For example, a policy that covers a trip to Europe will usually be cheaper than a policy that covers you for a worldwide trip. And the longer you’re away, the more your insurance is likely to cost.

Your age will also affect how much you pay for your cover. The older you are, the more it’s likely to cost.

You’ll also probably have to pay a bit more for travel insurance if you have a pre-existing medical condition. This includes conditions such as cancer, diabetes and heart problems, plus mental health conditions like anxiety and depression.

Another factor that will affect the price of your cover is how many add-ons you need. For example, you might want a more specialist policy, such as one that has golf, cruise, winter sports, extreme sports, gadget or wedding cover. Adding these onto your travel insurance will make it more expensive.

How to choose the right travel insurance

When you’re taking out travel insurance, you’ll need to consider:

How many trips are you going on?

If you’re planning two or more holidays in one year, it could be worth taking out an annual or multi-trip policy. This usually works out cheaper than insuring each trip separately.

What level of cover do you need?

Insurance providers usually offer more than one policy. Each level of cover will have different ‘coverage limits’ and excess amounts. 

To find the right cover level for you, think about:

• how much your holiday is costing in total
• how much your luggage is worth
• how much medical cover you might want (Forbes recommends £2 million for Europe and £5 million for other destinations)
• how much excess you could afford to pay if you needed to

Which add-ons do you need?

While most providers now offer some form of gadget cover, not all will have specialist cover options for things like golf or winter sports.

Does the provider have good reviews?

If you’re considering a lesser-known provider, it's a good idea to check real customer reviews on independent websites like Trustpilot.

If you find yourself in difficulty abroad, you’ll want your travel insurance provider to have good customer service and a straight-forward claims process.  

How to get travel insurance

You can buy your travel insurance online, at a travel agent, or sometimes through your travel operator – for example, your cruise company or airline.

To get a quote, you’ll usually need the date of birth for everyone you’d like the policy to cover, as well as your destination and travel dates.

Once you’ve worked out how much travel insurance you need, you can get quotes for different levels of cover. Once you’ve picked the right policy for you, you usually have a couple of weeks to review it. Just remember to check that the cover meets your needs when you’re buying it.  

Find out more

Thinking about going on holiday and want to know if you need cover? Here’s our handy travel insurance guide to help you decide. Then get your free quote for SunLife Travel Insurance that’s built around you.

And why not check out these articles for some holiday inspiration:

• The best over 50s holiday destinations and ideas
• The most romantic holiday destinations in the world
• UK’s best campervan holiday hotspots