Travel insurance cancellation cover

As well as flights and accommodation, travel insurance should be top of your holiday to-do list. If you buy this as soon as you book, you’ll have financial protection should anything unexpected cause you to cancel your trip.

Holiday cancellation insurance is included with many travel insurance policies as standard, as well as cover for other essential items, such as medical expenses, lost or delayed baggage and personal liability.

However, as with all elements of insurance policies, the level of cover you get will vary between insurers, so make sure you compare your options before you buy cover with cancellation insurance. Generally, an insurance policy will only pay out if the circumstances that have caused you to cancel travel were unforeseen – and insurers will check records so don’t be tempted to lie.

For example, if you fall ill or injure yourself ahead of a trip, causing you to have to cancel, you should be covered so long as you didn’t know about the illness before you took your policy out, and it isn’t related to an undeclared pre-existing condition.

The serious illness or death of a close relative may also cause you to cancel a holiday and you’re likely to be covered for this, again so long as it’s unexpected. Make sure you find out what your insurer classes as a “close relative” though as this can vary.

Other unexpected events you may be covered for should they cause you to cancel include being called for jury service, being made redundant, and serious fire or weather damage to your house.

If you took out your policy, or booked your trip, when you knew that something was likely to cause cancellation, you’re unlikely to be covered.

For example, if you knew about a chronic illness of a close relative and didn’t declare it to your insurer when you took the policy out, or you have an existing illness that you didn’t tell your insurer about, you won’t be covered. Equally, if you take a policy out knowing that you’re going to cancel a holiday, your insurance won’t be valid.

You’re also unlikely to be covered if you want to cancel because you’re dismissed from your job ahead of your holiday, knew about redundancy when you took out the policy, or opted for voluntary redundancy.

Simply changing your mind on your destination, injuries due to drug use, or realising you can’t go due to a work commitment aren’t reasons to claim either.

• Always buy a policy as soon as you book a holiday as, should you need to cancel for any reason, travel insurance will prove invaluable. It may be tempting to leave buying your policy until the last minute but you’ll be short-changing yourself on an essential element of protection.
• Always shop around to find the best travel insurance policy for you, whether you’re specifically looking for flight cancellation insurance or would like a competitive excess limit.
• Don’t assume that the cheapest policy is the best as you may not be covered for something that’s important to you. But, equally, you could pay a lot less for the same level of cover if you look at all of your options side-by-side by comparing policies online.
• When comparing, look carefully at the level of cover policies have, making sure you have adequate cover for your belongings, cancellation and any cash you may take. Make sure your cancellation cover level is at least the same amount as the cost of your holiday, plus any excursions you’ve booked.
• Consider whether a single-trip or annual policy will work out as better value for you. If you know you’re likely to take more than two trips abroad in a year, an annual, or multi-trip policy, could be better value – and you’ll have continuous cover, including cancellation.

Hand luggage

Travel documents

• Passport
• Visa (if necessary)
• Plane tickets
• Travel insurance documents
• EHIC card
• Any other holiday documentation - for example for your hotel, hire car, transfers or your itinerary
• Driving licence
• Student card/senior concession card - for discounts on holiday

Valuables

• Travel money/overseas credit card/prepaid card
• Valuables such as iPad, iPod, mobile phone and camera (plus headphones and a memory card)

Essentials

• Any maps, directions or instructions for arrival in resort
• Useful contact numbers - for your bank, travel insurance provider, contacts at home, etc
• An umbrella
• A clear plastic bag for any toiletries
• Any medicine you need (plus your prescription) - but remember, you have to stick to the 100ml rule
• Tissues/ wet wipes
• A notebook and pen

Entertainment and comfort for your journey

• A lightweight jumper and socks - in case it gets chilly on the plane
• Books, magazines or games
• A guidebook to your destination
• Painkillers
• Lip balm
• A sleep kit for long flights - an eye mask, a travel pillow and ear plugs
• DVT flight socks
• Travel sweets
• A bottle of water (buy this once you have passed through security)

Hold luggage

• Clothes
• Underwear
• Sleepwear
• Shoes
• Chargers - for your mobile phone, camera and any other electrical items
• Travel adapter
• Toiletries
• Swimwear
• Sunglasses
• Suncream
• After sun
• Beach towels
• Beach bag
• Books/ereader
• Plastic bags - for wet swimwear/dirty clothes
• Rehydration salts
• Razor and shaving gel
• Toothbrush and toothpaste
• Hairbrush/comb
• Hairdryer
• Accessories: Hats, scarves, belt, etc
• First aid kit
• Insect repellent
• Swiss Army knife
• Mini sewing kit

Travelling with children? Don't forget...

• A change of clothes for the journey
• Snacks and travel sweets for the journey
• Wet wipes
• Nappies
• Enough baby food/milk for the journey (you will have to taste these when passing through security)
• Toys, games and books to keep children entertained
• Any medication your children will need while away (plus their prescription)
• Dummies/comfort blankets/soft toys

Things to remember before your trip

Follow our checklist to set off on your round-the-world trip fully prepared.

• At least a month before you travel, check that your passport is in date and how long it is valid for - some countries require that it is valid for at least six months from the date of your arrival.
• Find out if you need a visa for any of your destinations by checking the country's embassy website. Remember that these can take a few weeks to process and will probably have a fee attached to them so do your research early. However, only start the visa process when you have finalised your plans and booked your flights.
• Visit your doctor or local travel clinic to check whether you need any injections or to take any special medication - such as malaria tablets - before you go away. Also think carefully about the activities you want to take part in on your trip and whether your current health is up to it - for example, if you plan to climb Mount Kilimanjaro but currently struggle climbing a flight of stairs, it might be time to set up a training regime.
• If you already have an annual travel insurance policy, check that it is valid for your trip - for example, many annual policies have a time limit on how long you can travel for and still be covered. Also think about any activities you plan to take part in while away such as bungee jumping or skiing and read the small print of your policy to ensure you are covered.
• Research, research, research! Before your trip, read information in books, magazines, on websites, ask questions in forums and on social networks to make sure you set off fully armed with information on what you want to see and do while you are away. The British and Foreign, Commonwealth and Development Office (FCDO) website is a great source of information.
  
• Be ruthless when packing and think carefully about what you will actually need. While you may have shoes for every occasion while at home, you might resent that extra pair when you are lugging your bag around the world.
• Sort out your travel extras in advance and shop around for them to save money. Big savings can be made by pre-booking extras such as car hire, finding the best rate online for travel money and sorting out your travel insurance well in advance of your trip.
• At least a month before you set off, check whether your current credit or debit cards are suitable for use overseas as many are not and you will incur unwelcome charges for purchases and withdrawals. If not, apply for a card specifically designed to be used abroad
• Pre-paid cards are also a good option for overseas currency and can be used to pay for items in shops and restaurants with low or no fees - but are not suitable for use when checking into a hotel or leaving card details with a car hire provider.
• Don't forget about any bills or regular payments you have set up at home while you are away - such as credit card bills or rent - and access your online banking account regularly to pay any outstanding balances.
• Carry contact details for people at home when you are travelling and make sure that friends and family know where you are and have your contact details. Make sure that you also have details for your travel insurance provider and your bank in case of an emergency.

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