How Much Travel Insurance Do I Need?

Introduction

Buying travel insurance is one thing — buying the right amount is another. Many travellers pick the cheapest policy they can find without checking whether it actually provides enough cover. When something goes wrong, they discover the hard way that their policy limits fall short of the bills they're facing.

The amount of travel insurance you need depends on several factors: where you're going, how long your trip is, what activities you plan to do, the total cost of your holiday, and your personal health. In this guide, we'll walk you through each type of cover, explain what levels are recommended for different scenarios, and help you make an informed choice about protecting your next trip.

Getting this right doesn't have to be complicated. By the end of this guide, you'll know exactly what to look for in a policy and how much cover you truly need.

Medical Cover: How Much Is Enough?

Medical cover is the most important element of any travel insurance policy. If you're seriously injured or become critically ill abroad, medical treatment and repatriation costs can be astronomical. The right amount of medical cover depends heavily on your destination.

Recommended Medical Cover by Destination

• Europe: Minimum £2,000,000 recommended. While the GHIC provides access to state healthcare, private treatment, repatriation, and complex medical procedures can quickly exceed this amount
• USA & Canada: Minimum £5,000,000 — ideally £10,000,000 or more. The USA has the highest medical costs in the world. A single night in an American ICU can cost $10,000–$30,000. An emergency appendectomy can exceed $40,000
• Caribbean & Central America: At least £5,000,000. Medical facilities vary widely, and evacuation to a better-equipped facility can be extremely expensive
• Asia & Australia: At least £5,000,000. Distances are vast, and medical evacuation from remote areas in South-East Asia or outback Australia can cost tens of thousands of pounds
• Worldwide (including USA): £10,000,000+ provides the broadest safety net

What Medical Cover Includes

Good medical cover should include emergency hospital treatment, surgery, medication, ambulance costs, and — crucially — medical repatriation. An air ambulance from the USA to the UK can cost upwards of £50,000. Without repatriation cover, you could be stranded or face crippling costs to get home.

The providers featured on CompassSure offer medical cover ranging from £5,000,000 to £15,000,000, including full repatriation cover. Compare quotes to find the right level for your trip.

Cancellation Cover

Cancellation cover reimburses you for non-recoverable costs if you need to cancel your trip before departure, or cut it short once you're away (curtailment). The right amount should reflect the total value of your trip.

How Much Cancellation Cover Do You Need?

As a rule, your cancellation cover should be at least equal to the total non-refundable cost of your trip. Consider:

• Flights: Non-refundable flight tickets, especially long-haul, can cost hundreds or thousands of pounds
• Accommodation: Hotel and villa bookings, particularly during peak season, are often non-refundable
• Excursions and activities: Pre-booked tours, theme park tickets, and experiences
• Travel extras: Airport transfers, car hire deposits, and visa fees

If your total trip cost is £2,000, a policy with £1,000 cancellation cover leaves you exposed to a £1,000 shortfall. Choose a plan that covers the full value. Policies typically offer cancellation cover from £1,000 up to £5,000 or more depending on the plan level. For particularly expensive holidays, consider whether you need a higher-tier policy.

Common Covered Reasons for Cancellation

• Illness, injury, or death of you, a travelling companion, or a close relative
• Jury service or witness summons
• Redundancy (where you've been employed for 2+ years)
• FCDO advice against travel to your destination
• Severe weather events making travel impossible
• Burglary at your home within 48 hours of departure

Baggage & Personal Belongings Cover

Baggage cover protects you if your luggage is lost, stolen, or damaged during your trip. The right amount depends on what you're travelling with.

Typical Baggage Cover Levels

• Essential: £1,000 total — suitable for budget travellers with low-value belongings
• Standard: £2,000 total — adequate for most holiday-makers
• Comprehensive: £2,500+ total — recommended if you're travelling with electronics, jewellery, or expensive items

Single Item Limits

Be aware that most policies impose a single item limit — the maximum they'll pay for any individual item. This is typically £200–£500. If you're travelling with a laptop worth £1,200, standard baggage cover won't fully reimburse you. Check whether your policy offers gadget cover as an add-on, or consider separate gadget insurance if you're carrying high-value electronics.

Valuables Limit

Policies also impose a valuables limit — a cap on the total you can claim for items such as jewellery, watches, cameras, and electronics combined. This is often around £200–£400. If your combined valuables exceed this figure, you may wish to arrange additional cover.

Do You Need More Cover for Certain Destinations?

Your destination is one of the most important factors when determining how much cover you need. Here's why:

United States & Canada

Medical costs in North America are exceptionally high. A broken leg treated in an American hospital can easily cost $20,000–$50,000. An ICU stay can cost $10,000–$30,000 per day. We strongly recommend at least £10,000,000 in medical cover for US and Canadian trips. This is non-negotiable.

Europe

While generally less expensive than the USA, European medical treatment still carries meaningful costs — particularly in Switzerland, Norway, and private facilities. The GHIC helps but has significant gaps. A minimum of £2,000,000 medical cover is recommended for European trips.

Remote and Developing Destinations

If your destination has limited medical infrastructure, you may need evacuation to a better-equipped hospital or repatriation to the UK. Medical evacuation from remote areas — such as rural South-East Asia, African countries, or island destinations — can cost upwards of £30,000. Higher medical cover limits provide an essential safety net.

Adventure Activities & Sports

Standard travel insurance policies typically cover common leisure activities such as swimming, cycling, and sightseeing. However, if you plan to engage in adventure sports or higher-risk activities, you'll need to ensure these are specifically covered — or add them to your policy.

Activities That Often Require Additional Cover

• Winter sports: Skiing, snowboarding, and ice skating — see our winter sports insurance
• Water sports: Scuba diving (especially below 30 metres), jet-skiing, white-water rafting
• Extreme sports: Bungee jumping, skydiving, paragliding, rock climbing
• Trekking: Hiking at high altitude (above 2,000–4,000 metres depending on policy)
• Motorised activities: Quad biking, motorcycle touring

Activity cover typically doesn't cost much more but the financial consequences of being uninsured during a skiing accident or scuba diving incident can be devastating. Mountain rescue alone can cost £5,000–£15,000 in the Alps. Always check your policy wording and add any necessary activity extensions before you travel.

How Age Affects Cover Levels

Age is a significant factor in both the cost and the recommended level of travel insurance. Statistically, older travellers are more likely to need medical treatment abroad, and claims from older travellers tend to be higher in value.

Considerations for Travellers Over 50

• Higher medical cover: We recommend at least £10,000,000 in medical cover for travellers over 65, given the greater likelihood of hospitalisation
• Pre-existing conditions: Many over 50s travellers have pre-existing medical conditions that must be declared. Ensure your policy covers these specifically
• Repatriation: Older travellers may require more complex repatriation arrangements, making comprehensive medical cover essential
• Cancellation: Older travellers are statistically more likely to need to cancel due to illness, so higher cancellation limits are advisable

Cover for Families

Travelling with children? Family travel insurance policies are designed to cover the whole family under one plan. Ensure your policy has adequate cancellation cover to reflect the total family holiday cost, and check that it covers any activities your children may be doing (such as water parks or go-karting).

Choosing the Right Plan

With all of these factors in mind, the best approach is to match your cover to your specific circumstances. Here's a simple framework:

Essential Cover Is Suitable If:

• You're taking a short European trip (up to two weeks)
• You have no pre-existing medical conditions
• Your total trip cost is under £1,000
• You won't be doing any adventurous activities
• You're travelling light with low-value belongings

Standard Cover Is Suitable If:

• You're visiting Europe or a worldwide destination (excluding the USA)
• Your trip costs between £1,000 and £3,000
• You want solid medical cover with good cancellation protection
• You're carrying some valuable items such as a camera or tablet

Comprehensive Cover Is Recommended If:

• You're visiting the USA, Canada, or another high-cost destination
• You have pre-existing medical conditions
• Your trip costs more than £3,000
• You plan to do adventure activities or winter sports
• You're travelling with expensive electronics, jewellery, or equipment
• You want maximum peace of mind with the highest limits available

Still unsure? Use our online quote tool to compare plans side by side and find the perfect level of cover for your trip.