Travel insurance is not a legal requirement, so it is tempting to skip it to save money, especially on a cheap trip. But going without can be a costly gamble. This guide explains whether you really need travel insurance, what happens if you travel without it, and when it matters most.
Is travel insurance compulsory?
No law forces you to have travel insurance, and you can travel without it. However, it is strongly recommended, and the official advice for travellers is to take out cover. The reason is simple: without insurance, you carry the entire financial risk of anything going wrong, from a medical emergency to a cancelled trip. So while it is your choice, choosing to go without means accepting some potentially very large risks yourself.
What happens if you travel without it
If something goes wrong without insurance, you pay the costs yourself. A medical emergency abroad could leave you with a bill running into tens of thousands of pounds, particularly in countries with expensive healthcare, and repatriation can cost even more. A cancelled trip could mean losing everything you paid for flights and accommodation. Lost baggage, missed connections and other mishaps all become your own financial problem, which insurance would otherwise have covered.
The GHIC is not enough on its own
Some travellers to Europe assume a Global Health Insurance Card is all they need, but it is not. The GHIC gives access to state healthcare in participating countries at local cost, but it does not cover repatriation, treatment outside those countries, cancellation, lost baggage or many other things, as our guide to the GHIC explains. It is a useful complement to travel insurance, not a substitute for it.
The scale of the costs
It helps to grasp how large the costs can be. Emergency medical treatment and an air ambulance home from a far-off country can run well into six figures. Even within Europe, costs the GHIC does not cover can be substantial. Set against a travel insurance premium that may cost only a small fraction of the trip, the potential downside of going uninsured is hugely out of proportion to the saving.
When it matters most
Travel insurance matters for every trip, but some situations make it especially important. Travelling to countries with very high medical costs, such as the United States, taking a cruise, doing adventurous activities, being an older traveller, or having a pre-existing medical condition all raise the stakes. In these cases, the cost of something going wrong without insurance could be life-changing, so cover is all the more essential.
Even short and cheap trips
People often skip insurance on short or cheap trips, reasoning there is little to lose. But the biggest risk, a medical emergency, has nothing to do with the cost of the trip; it can happen on a cheap weekend break just as easily as a luxury holiday. Since the medical risk is the main reason to insure, even inexpensive trips are worth covering, and cover for a short trip is usually very cheap.
Cover you may already have
Before buying, check whether you already have travel insurance through another source. Some packaged bank accounts and credit cards include travel cover as a perk. If you do, make sure it is adequate for your trip, including the medical limit, the destinations and any age or medical condition restrictions, as these policies vary. Existing cover can save you buying a separate policy, but only if it genuinely meets your needs.
Weighing the cost against the risk
Ultimately, deciding whether to buy travel insurance is about weighing a modest, certain cost against a small chance of a very large loss. For most people and most trips, the premium is a small price for protection against costs that could otherwise be ruinous. Going without might save a little, but it leaves you exposed to risks that are precisely the kind insurance exists to handle.
What about trips within the UK?
You can buy travel insurance for trips within the UK, which mainly covers cancellation, lost baggage and similar, since the NHS provides your healthcare at home. Whether it is worth it depends on how much you have prepaid and could lose. For an expensive UK break with non-refundable bookings, cancellation cover can be useful, while for a cheap, flexible trip it may not be. The medical reason to insure simply does not apply at home.
Business and frequent travellers
If you travel often, for work or leisure, going uninsured repeatedly multiplies your exposure to risk. Frequent travellers are usually better served by an annual policy, which keeps them covered all year, and business travellers may have cover arranged by their employer, which is worth checking. The more you travel, the more likely it is that something will eventually go wrong, making consistent cover all the more sensible rather than insuring trip by trip.
What the official advice says
The official guidance for UK travellers is to take out appropriate travel insurance before going abroad, and to do so as soon as a trip is booked. Travel advice also stresses having cover suitable for your destination and activities, including adequate medical cover. This reflects the simple reality that the costs of a serious problem abroad can be severe, and that insurance is the practical way for travellers to protect themselves against them.
The peace-of-mind factor
Beyond the pure economics, travel insurance buys peace of mind. Knowing that if you fall ill, have an accident, or have to cancel, you will not face a ruinous bill, lets you travel with far less worry. For many people, that reassurance is worth the modest premium in itself, quite apart from the financial protection. Travelling with cover in place simply makes for a more relaxed trip, whatever the destination.
A small cost against a big risk
The case for travel insurance ultimately rests on proportion. The premium is small and certain; the costs it guards against are large and unpredictable. For roughly the price of a meal out, you protect yourself against medical bills, lost deposits and disrupted journeys that could otherwise run into thousands of pounds. Seen that way, the real question is less whether you can afford travel insurance, and more whether you can afford to travel without it, particularly once a trip is booked and your money is already at stake.
In short
Travel insurance is not compulsory, but going without means carrying large risks yourself, above all a medical emergency abroad that could cost tens of thousands of pounds plus repatriation. The GHIC helps in Europe but does not replace insurance. Cover matters most for high-cost destinations, cruises, activities, older travellers and pre-existing conditions, but even short, cheap trips are worth insuring, since the medical risk is unrelated to the trip's cost.
Where to get help and next steps
Read travel insurance explained for what a policy covers, worldwide versus European cover and the GHIC, and cancellation cover. This is general information, not financial advice.