Travel insurance guide for 2025 — best deals from Barclays to GoCompare

Anushka Suharu

Published January 2, 2025 3:40pm Updated January 2, 2025 3:40pm

Still life of a black suitcase with a straw hat in the living room of an apartment. Travel and vacation concept — Before you jet off, make sure your insurance has you covered (Picture: Getty)

As temperatures plummet and the UK braces for a snowy weekend, there’s never been a better time to plan your next holiday to sunnier shores.

But before you grab your passport and book those flights, there’s one essential item you shouldn’t forget: travel insurance.

Whether it’s a city break or a two-week escape to the beach, understanding when to buy, how to find the best deals, and what coverage you need will save you stress and money.

Here’s everything you need to know about travel insurance in 2025.

When to buy travel insurance

It’s best to buy insurance as soon as you’ve booked your tickets (Picture: Getty)

The best time to buy travel insurance is as soon as you book your trip.

This means you’re covered for any unexpected events that could disrupt plans, such as illness, injury, or unforeseen cancellations.

Many policies include trip cancellation coverage, which reimburses you if you need to cancel your holiday for valid reasons.

Buying early also allows you to crunch numbers by comparing policies and choosing the one that best suits your needs, rather than scrambling at the eleventh hour.

If you’re booking a last-minute trip, don’t worry — most insurers allow you to purchase a policy right up until your departure date.

Just make sure you’re fully aware of the coverage you’re buying, especially for emergencies like medical expenses or flight cancellations.

Do you need travel insurance for Europe in 2025?

Yes, travel insurance is highly recommended for Europe in 2025.

Since Brexit, the EHIC (European Health Insurance Card) has been replaced by the UK GHIC (UK Global Health Insurance Card) for most travellers — unless they have a right to a UK EHIC under the withdrawal agreement.

The UK GHIC is free to apply for and helps you access state healthcare when you travel abroad, should you have an accident, fall ill, or need any treatment that cannot reasonably wait until you return to the UK.

You can apply for the UK GHIC via the NHS website.

Remember to apply for your GHIC card (Picture: Getty)

However, when travelling to any EU country or Switzerland, the gov.uk website advises that you should also have travel insurance with healthcare cover.

This is because the UK GHIC may not cover all health costs and never covers repatriation costs.

In addition to health coverage, the right travel insurance should also protect you from theft, loss, and other unexpected expenses.

Some countries may also require proof of travel insurance for entry, particularly for visa purposes.

While there is no legal requirement for having travel insurance before you travel like other types of insurance, it’s there for peace of mind – you never know what might happen and it’s better safe than sorry.

Policies tailored for Europe are often more affordable than worldwide coverage, so there’s little reason to skip it.

How to find the cheapest travel insurance

With travel costs rising in 2025, having the right travel insurance is more essential than ever.

Whether it’s a medical emergency, theft, or travel disruption, a comprehensive policy ensures you’re financially protected and provides peace of mind.

7 top tips to find the cheapest travel insurance for your holidays

Book early: Purchase your travel insurance as soon as you book your trip. This ensures you’re covered for cancellations or other issues that may arise before departure.
Shop around: Compare policies from different providers instead of settling for the first one you find. Be cautious with comparison sites, as some prioritise sponsored deals over the best options.
Tailor your policy: Only pay for what you need. For example, skip winter sports coverage for a beach holiday, and check if your gadgets are already covered under your home insurance.
Consider annual policies: If you plan to travel more than once a year, an annual policy could save you money compared to multiple single-trip policies.
Look into group policies: Traveling with family or friends? A joint policy can be more cost-effective than insuring everyone separately.
Check bank offers: Some packaged bank accounts include travel insurance. If you’re already covered, ensure the policy meets your needs, and purchase additional coverage if necessary.
Understand the small print: Low-premium policies might have higher excess fees. Always review terms and conditions to avoid surprises when making a claim

Is travel insurance worth the money?

Deciding whether to buy travel insurance is a personal choice, but for most travelers, the benefits far outweigh the costs.

Unexpected events – from trip cancellations and delayed flights to stolen belongings or medical emergencies – can happen to anyone, and the right policy ensures you’re not left footing a hefty bill.

Policies can range from as little as £5 for basic coverage to significantly more for comprehensive plans, but even the smallest investment can save you thousands in a crisis.

For instance, emergency medical repatriation from abroad could cost tens of thousands of pounds, and even smaller mishaps like lost luggage or a delayed flight can create financial strain without coverage.

Insurance can cover the cost of lost luggage as well (Picture: Getty)

Some travelers may already have coverage through packaged bank accounts or credit cards, particularly for European trips.

However, these policies may not always meet your needs, especially if you’re planning activities like winter sports or taking expensive gadgets with you. Always check the terms of any existing coverage before deciding whether you need an additional policy.

Having travel insurance becomes even more worthwhile the more you travel. Frequent travelers might find annual multi-trip policies particularly cost-effective, offering consistent protection for multiple holidays.

Types of travel insurance explained

If you only plan to travel once or twice a year, within the UK or internationally, a single-trip policy is usually enough. These policies are affordable, with some starting from £5.

You may save money on single-trip cover if you’re specific about your destination when getting quotes.

Insurers calculate premiums based on the perceived risks of certain locations, with some countries, like Spain, being more expensive due to higher medical costs. Opting for a general “Europe” policy can often cost more than specifying a lower-risk country like France.

However, if you travel more frequently, the cost of individual single-trip policies can add up, making an annual policy a more cost-effective choice.

Keep in mind that most annual policies limit the duration of individual trips to around 30 days. For longer trips or backpacking, extended single-trip policies are necessary, but these tend to be pricier. Always check the maximum trip length allowed under your chosen plan, as this can vary by provider.

Certain holidays, like winter sports trips or cruises, may require extra coverage.

Things to consider when choosing your policy

Excess: Travel insurance policies often include an excess, typically ranging from £50 to over £200, which is deducted from any potential payout. Cheaper policies tend to have higher excesses. While a lower-cost policy may seem appealing, a high excess can reduce the value of a claim, making it worthwhile to pay more upfront for a smaller excess.

Gadgets: With smartphones, cameras, tablets, and laptops, many travelers carry gadgets worth thousands of pounds. However, most policies have limited coverage for electronics, often capping individual item values and requiring proof of UK purchase within a specific time frame. If you’re traveling with expensive items, carefully check the policy terms and consider additional gadget insurance if needed.

Activities: Standard policies may not include coverage for certain activities like winter sports, cruises, or more niche options like kite surfing. While many watersports are usually included, always confirm what’s covered and purchase additional protection if necessary for specialized activities.

Geography: Insurance generally excludes travel to destinations with FCO (Foreign, Commonwealth & Development Office) warnings or economic sanctions. For UK staycations, some policies require a minimum travel distance from home or a certain number of nights away to qualify for coverage. Always verify your policy aligns with your destination and trip specifics.

Standard travel insurance often excludes these activities, and cruise cover, in particular, is frequently available only as a premium add-on due to unique risks such as missed departures, itinerary changes, or cabin confinement if you fall ill.

Finally, if you’re over a certain age or have a pre-existing medical condition, you may need additional coverage tailored to your circumstances.

Which company has the cheapest insurance policy?

There are lots of comparison websites like Confused.com and GoComparewhere you can look for the latest deals on insurance policies.

Sometimes it’s worth looking at several comparison websites as the insurance providers, policies and prices will vary.

When you’ve found the one you might want to go for, you may also want to have one last look on the insurance provider’s website to see if they can offer a cheaper price or a plan that suits you better.

Some of the best options for affordable travel insurance include providers like the Post Office, Tesco, and Aviva, as well as banks like NatWest and Barclays, which offer travel insurance as part of their account packages.