Two times at which you might be most keen to enjoy the freedom of travel can be the trickiest to secure insurance for your trip. When of, or nearing, retirement age, or while recovering from a medical issue, finding the right cover, at an affordable price, is a struggle for many people.
Among them is Keith Hursthouse, who is 63 and from Cardiff. Keith initially had some difficulty getting insurance because he had been diagnosed with basal cell carcinoma, the most common type of skin cancer in the UK. However, after securing a policy with a specialist insurer it was the aftermath of breaking his elbow, rather than the skin cancer, that saw his insurance premium double.
“In March, I broke my elbow in a fall from my bike.
“I had to have a single session of physiotherapy after it healed, where the physio showed me exercises I needed to do.
“He said it was up to me whether I saw him again for a progress check. I decided I would have that second appointment, simply because I’m a cautious kind of person.”
But this meant Keith’s elbow was still factored into his insurance quote.
“Even though the appointment was not actually necessary, they raised my insurance premium to [more than double] because they said I had not been officially discharged by the hospital,” he says.
“When I protested, they said I could visit my account on their website after I had completed treatment, update my situation, and there would then be a possiblity of my premium being lowered. You won’t be surprised to hear it remained [the same].”
Insurance and pre-existing conditions
The consumer association Which? found that 36 per cent of travel insurance policyholders with existing medical issues reported problems buying cover because of their condition. The most common issue was expensive premiums.
UK goverment statistics suggest that the waiting list for hospital treatment in England rose to a record of 7.8 million in September 2023.
Meanwhile, an ONS survey published in April suggested the number could be closer to 10 million. Its survey of 90,000 adults found that 21 per cent of patients were waiting for a hospital appointment or to begin treatment.
A spokesperson for AllClear, a travel insurance provider specialising in existing conditions, says: “Our research shows that one in four British holidaymakers that have or will go on holiday abroad this year have a pre-existing medical condition.”
“But in light of the cost of living crisis, there’s a renewed focus on price across all areas of life, including travel.”
For travel insurers, it can be more complex to calculate the risk of a customer who is on an NHS waiting list. Insurance experts say that providers use independent medical risk assessment tools as well as their own claims data to determine their decisions. They urge travellers to be transparent about their medical conditions and to disclose them in full.
Shop around – and don’t go without
AllClear’s research reveals that the percentage of people with medical conditions who are not declaring them when purchasing travel insurance has risen steeply from 20 per cent in 2023 to 31 per cent this summer.
“People are looking to cut down on their travel expenses. This is leading to people with medical conditions cutting corners with travel insurance, which can be enormously dangerous,” a spokesperson added.
Medical treatment abroad remains one of the most common reasons for a travel insurance claim. According to research from GoCompare, 30 per cent of travel insurance claims in the past year related to covering medical expenses. Data from another insurer, Staysure, found that the second largest category of claim was for medical emergencies with their largest claim reaching £353,779.
It’s no secret that those travelling without insurance face the risk of significant medical costs, which have risen notably since 2019 according to date from Abta, the travel association.
In 2019, an air ambulance from the EU back to the United Kingdom cost between €15,000–€20,000 (£12,630–£16,840) – which rose to between €25,000-€30,000 in 2023. Costs are even higher outside of Europe, more than doubling from €35,000–€40,000 in 2019 to €75,000-€85,000 in 2023.
The cost of a hospital stay varies widely between countries. Among the most expensive was Monaco at £2,400 per bed, per day.
Get a GHIC card
While all travellers should have, or apply for, a Global Health Insurance Card (GHIC) – or European Health Insurance Card (EHIC) – which entitles you to state-provided medical treatment necessary during your trip, Monaco is among the European countries where it is not valid.
“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,” said Graeme Buck, Abta’s director of communications.
“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.”
As for the GHIC (or EHIC) card, which allows access to treatment at the same price as the residents of the country you are visiting, this does not necessarily mean that medical assistance will be free. The UK also has reciporical healthcare agreements with countries outside the EU. There are also notable exclusions, such as ambulance costs or emergency travel back to the UK.
Rhys Jones, travel insurance spokesperson for Go.Compare, said: “With stories hitting the news recently about uninsured travellers facing eye-watering medical costs, it goes without saying that travel insurance could be an important safety net.”
Seek expert advice
Those with existing conditions looking for the most cost-effective cover should compare multi-trip and single-trip options. While many existing medical conditions are covered by UK insurance providers, some people may need to go to a specialist travel insurer.
MoneyHelper, which offers free and impartial help with money and pensions, has a directory of insurance companies specialising in covering people with medical conditions that are regulated by the Financial Conduct Authority (FCA). Some firms may deal with a set of conditions, others focus on one type of illness, such as cancer.
A broker may also refer anyone struggling to find insurance to a provider who can help. The British Insurance Brokers’ Association (Biba) offers brokerage services. The FCA rules require insurance providers to “signpost” customers that they cannot cover to an FCA accredited directory, such as Biba’s travel medical directory, to find specialist insurance brokers who can help them.
Garry Nelson, head of corporate affairs at AllClear, said. “We understand the cost of living pressures many people have to cope with, and the encouragement people get from many price comparison sites to shop for cover on price. But there is a simple truth with travel Insurance that you get what you pay for.
“Older travellers and those with medical conditions need to declare all the relevant information when buying a policy. It ensures they can travel abroad safely and it avoids the risk of something going wrong only to find your cover is not valid.”
He adds: “Emergency medical treatment abroad can cost more than people think. That’s why medical cover should be the number one priority when looking for travel insurance, particularly for older holidaymakers and those with medical conditions. A comprehensive policy will cover emergency medical costs, including hospital charges and ambulance fees. It also covers repatriation (medical transport back home) if needed.”
Choose the right cover for you
AllClear adds that the question travellers should be asking is what is the right cover for me, not what’s most expensive or the cheapest, but what gives me the protections I may actually need.
A spokesperson from the Association of British Insurers said: “The biggest cost that travel insurance is designed to cover is for emergency medical treatment that might be needed whilst overseas.
“Insurers want to offer cover to as many people as possible but it’s important they fully understand the details of your pre-existing medical conditions, including for those awaiting treatment or diagnosis, to ensure you have the right policy for your needs.
“Anyone awaiting results should contact their insurer who can advise on the best approach and whether alternative cover is available. If your circumstances change during the course of your travel insurance policy, for instance you receive a new diagnosis, you should make sure to inform your insurer. As part of the industry’s signposting agreement, if an insurer is unable to offer you cover, they automatically refer you to an alternative provider who can help.”