Travel insurance: holiday travellers warned of 'ruin' if they don't take out insurance as health costs soar

Holidaymakers are being warned that not getting travel insurance could put them at risk of "financial ruin."

Emergency medical costs have "gone through the roof" in recent years, according to travel trade organisation Abta.

It cited figures from insurance provider Axa Assistance that demonstrated a rise in the price of an air ambulance ride back to the UK in the event that a person becomes seriously ill, or is involved in a significant accident while on holiday abroad.

Flight prices from the European Union rose from €15,000-€20,000 (£12,800-£17,100) in 2019 to €25,000-€30,000 (£21,300-£25,600) last year.

Over the same period, flights from other parts of the world more than doubled in price, from 25,000-30,000 euros (£21,300-£25,600) to 75,000-85,000 euros (£64,000-£72,600).

Abta said air ambulance and other medical costs should be covered by comprehensive travel insurance policies.

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It warned holidaymakers not to rely on the general health insurance card as it only allows UK citizens to access state medical care in the European Union and a handful of other destinations, and does not cover air ambulance costs.

Abta director of communications Graeme Buck said: “Every year we see very sad stories of uninsured people who have fallen ill or had an accident whilst overseas and are running up large medical bills.

“They often resort to setting up a Go Fund Me page or similar, but they will now find they need to raise substantially more money, with air ambulance and other medical costs having gone through the roof.

“It is simply not worth the risk of financial ruin simply to save a few pounds, so always take out travel insurance at the time of booking your holiday or other travel arrangements.”

Jennifer Anderson, director for consular and crisis at the Foreign, Commonwealth and Development Office, said: “Travelling without insurance can be expensive and distressing if things do go wrong when you are abroad.

“The good news is that purchasing the right travel insurance does not take long and could save you a lot of money and stress.

“I encourage anyone booking travel to make sure your travel insurance covers the places you visit, the duration of your visit and any planned activities, and do disclose any medical conditions so your cover remains valid.”

Tips for the best holiday insurance

Finding affordable and dependable holiday insurance can be crucial for peace of mind during your travels.

Use comparison websites or insurance aggregators to compare prices and coverage options from multiple insurers. This allows you to find the best value for your specific needs.

If you travel frequently, an annual multi-trip policy might be more cost-effective than purchasing separate policies for each trip.

Ensure that the policy covers all the activities you plan to do during your holiday, such as skiing, scuba diving or other adventure sports. Make sure it includes adequate medical coverage, trip cancellation/interruption coverage and coverage for lost or stolen belongings.

Carefully read the policy documents to understand what is and isn't covered, as well as any limits or exclusions that may apply. Pay attention to pre-existing medical conditions and age restrictions.

Policies with higher excess fees often have lower premiums. Evaluate whether you're comfortable with paying a higher excess fee in the event of a claim to reduce your premium costs.

Some insurers offer discounts for various reasons, such as purchasing online, being a member of certain organisations or bundling insurance policies.

If you're travelling with family or friends, consider purchasing a group policy, which can sometimes offer savings compared to individual policies.

Check if you already have insurance coverage through your bank, credit card or other memberships. Sometimes these policies include travel insurance benefits that you may not be aware of.

Look for reviews and ratings of insurance companies to gauge their reputation for customer service and claims handling. A reliable insurer with good customer feedback is essential for a hassle-free experience.

Purchasing travel insurance well in advance of your trip can sometimes result in lower premiums. Additionally, it ensures you're covered for any unexpected events that may occur before your departure.