How to get the best travel insurance for green and amber countries this summer

Now the UK is out of a pandemic, we have a 'traffic light' system in place and international travel has resumed, does that mean our travel insurance will go back to normal? Sadly not.

As the demand for holidays reboots, British holidaymakers are sensibly covering themselves with travel insurance. One of the country's biggest providers, LV, has reported a sales spike of 256% in recent weeks.

However, Which? has warned that travellers are being given a "false impression" as to what insurers will, and will not, cover this summer. This is due to a raft of exclusions, brought in due to the pandemic, and ambiguities over what 'covid cover' actually means.

Right at the start of the pandemic insurance providers moved swiftly to exclude claims related to the pandemic. Generally speaking, all policies sold after March 17, 2020 greatly reduced their cover and virtually all these have now expired. Only during last summer and autumn did less restrictive policies start to be offered, and many of these still had important exclusions.

So what should you do about covering yourself? How can you be sure you have a decent policy which isn’t hedged about by exclusions and restrictions?

There are several key areas relating to Covid-19 that you need to consider. We explain these below, and our table gives details of the cover currently offered in this area by nine different policies.

Please note, that virtually all policies automatically cancel cover if you travel against FCDO advice, though it can still be possible to find a ways around this exclusion (see here for more information on insurance for travel against Foreign Office advice).

What if I catch Covid before my holiday and can't fly?

No insurance policy covers your costs if you unilaterally decide to cancel your holiday; this remains the case even if you believe there is very reasonable cause for you to do so.

However, Covid-19 has brought a whole new dimension to the risks of having to cancel or change your holiday. And we don’t yet know which scenarios are likely to be a risk in future. There are obvious ones, such as contracting the disease prior to departure (or testing positive) and a requirement to self isolate because of exposure to someone who has the disease. Some policies do now cover this – see table – though all are subject to strict definitions. Find out what happens if you get track-and-traced before your holiday here.

What if I have to cancel due to a national or local lockdown?

Note that I couldn’t find any policies which would cover cancellation because of the imposition of a national or local lockdown or a change in FCDO advice here or intended destination. This relates to when your “green” holiday destination, as defined by the Government’s traffic light system, turns red or amber, either shortly before travel or while you are away. It similarly might involve a situation where you will forced to quarantine in a hotel on return to the UK, if a country turns red while you are away.

The mitigation for this risk is that so many airlines and tour operators have introduced flexible booking policies which enable you to postpone or rebook your travel until a later date. In some cases – British Airways, for example – these are as late as the opening of check-in just before a flight departs. This means in effect that the financial consequences of cancellation are much lower than they used to be. Since you are much better off booking with an airline or operator which offers such flexibility, then you don’t need to worry so much about this aspect of the policy.

See here for more information.

What if I catch Covid-19 while abroad?

Of course, the risk we would all do well to be most wary of is being hospitalised with Covid-19 while travelling. The positive news here is the new agreement with the EU to replace the EHIC card – now known as the GHIC card. This means that UK citizens are now entitled to “free or reduced cost state-provided healthcare where treatment becomes medically necessary during a temporary visit to the European Union (EU).” Your old EHIC card remains valid until expiry, but you can then apply for a new GHIC card at ghic.org.uk). However, good travel insurance policies do now cover the cost of private treatment (see table) and also medical repatriation if necessary, and they will also give you cover outside the EU.

What if I catch Covid and have to extend my stay?

Less certain is cover for the additional accommodation and travel costs if you are forced to extend your holiday because of Covid-19. Some policies do cover you if you suffer a positive test and have to do this. But a requirement to self isolate because of exposure to someone with the virus is a much greyer area. Only one insurer in our survey – Campbell Irvine, see table – said that it would also cover this if the instruction to self isolate was given by a “treating” doctor or the local authorities.

What if my tour operator or airline collapses?

Obviously tour operators and airlines are not in great shape at the moment. So you do need to be wary of the risks of financial collapse. A few policies offer cover for this, though sometimes you have to pay an extra premium. But the best protection is make sure you book with an Atol-bonded tour operator (caa.co.uk/atol-protection) which guarantees a refund in the event of a collapse. An alternative back up is to book your travel arrangements using a credit card. The bank or card issuer liable under the Consumer Credit Act if you lose money when the company you have paid with that card goes out of business.

Can I get travel insurance if I am travelling to am amber country? If not, what are the risks?

The key point for insurers is not the traffic light rating, but whether or not the FCDO advises against all but essential travel. Currently – and very confusingly – it advises against travel to most amber destinations. For these you will need specialist insurance cover. But there are a few exceptions – including the Canary Islands, Crete, Corfu, Kos, Rhodes and Zakynthos. You should have no problem getting insurance for these destinations. If you travel uninsured in the EU you will have to rely on a GHIC card to give you access to the local health service (see What if I catch Covid-19 while abroad?).

Can I get travel insurance if I am travelling to a red country? If not, what are the risks?

It will depend on the destination. But a company offering policies which allow you travel travel against FCDO advice may well be able to offer you cover. Bear in mind that you will have to pay to stay in a quarantine hotel for ten days on your return, however.

Other factors to consider when booking

Everybody has slightly different needs from insurance, so it’s worth checking other key aspects of the policy before buying.

General cover limits

Policy limits for different aspects of cover can be irritatingly out of balance. Insurers are often mean over baggage and cancellation, and set unnecessarily high limits (or no limit at all) for medical cover. The following seem to me to be reasonable amounts which will cover most cases: cancellation (£5,000), emergency medical cover (£10 million), baggage (£2,000), missed departure (£750), personal liability (£2 million).

Exclusions

All policies should include a list of sports and activities that are automatically covered, and those which need an extra premium to be included. You need to check these through carefully. Some may have exclusions for surprisingly ordinary activities, such as some kinds of trekking, for example. Note that winter sports is now usually an optional extra on multi-trip policies – typically with an extra premium for up to 17 days a year. Look out for restrictions – on off-piste skiing or boarding, or lack of cover for skis left unattended and unsecured.

Multiple cover

It is normally cheaper to buy cover for a couple, or a family, under one policy – the best annual policies will also allow each of the insured to travel independently.

Multi-trip policies

These cover all the travelling you do in a calendar year, with limits on the length of each individual trip. Whether it is cheaper to buy one of these than separate policies every time you travel depends how much travelling you do – three or four trips in 12 months will usually mean you save with multi-trip cover. The other huge advantage of a multi-trip policy is that you are covered continuously and don’t have to shop for a new policy each time you book. You can normally choose, in order of cost, between worldwide cover, worldwide without North America, or Europe only. However, the appeal of these policies is rather dampened at the moment given that restrictions on travel to many destinations are likely to continue for months to come.

Age limits

Many policies increase premiums sharply for the over 65s – especially if you have a medical condition. See our guide for more details.