What’s the best travel cover to buy in a Covid crisis?

The sun is shining (finally) and holidays abroad are back on the agenda. But with Covid cases rising, testing chaos and ministers still changing guidance at a moment’s notice, travelling overseas has never been trickier.

It’s why it has become all the more important to invest in a comprehensive travel insurance policy that will pay out in the event something doesn’t go to plan. Yet even buying holiday cover is proving to be a headache.

Travel insurance searches were up 191 per cent between June and July, while the cost of cover has crept up 4 per cent, according to comparison site MoneySuperMarket.

Holiday fears: Travel insurance searches were up 191 per cent between June and July, while the cost of cover has crept up 4 per cent

But sun seekers are being urged to tread carefully.

Some insurers will not pay out for anything related to the virus, while those that do claim to offer Covid cover may have costly exclusions buried in the terms and conditions.

In fact, as our table shows, there is not a single policy that will pay out for every scenario that could jeopardise your trip.

And with the average policy document running to 32 pages, or 22,500 words, according to consumer group Fairer Finance, it can be easy to get caught out.

So if you are hoping to get away this summer, here’s our must-read guide to navigating the travel insurance minefield . . .

Heading to an amber-list country 

If you are booked to travel to a destination on the Government’s amber list, your first step is to check the Foreign, Commonwealth and Development Office (FCDO) website.

This is separate to the Government’s traffic light system, and you may find it still advises against all but essential travel to some amber-list countries, such as Italy.

Checking is crucial because travel insurers do not typically reference the traffic light system in their policies.

Instead, they focus on whether or not the FCDO recommends travel to a country — and most will not cover you if a warning is still in place.

However some insurers are offering add-on cover for this scenario.

Staysure and Avanti both offer a European FCDO Travel Advice Extension.

On top of the typical insurance for lost belongings and medical emergencies, you will also benefit from additional Covid cover.

This includes up to £1,000 of cover for travel or accommodation expenses if an incident relating to Covid means you are advised to return home early from European destinations, plus Morocco, Tunisia, Turkey and Egypt.

It will also cover medical bills if you get Covid-19 while abroad, and pay for cancelled trips if a relative or someone you live with is hospitalised with Covid. 

Prices for the add-on starts at around £5, although Staysure says 74 pc of customers pay less than this.

Staysure and Avanti also cover cancellations if you are contacted by NHS Test and Trace and told to self-isolate meaning you cannot travel.

It will not pay out if the country you are visiting goes into lockdown or Government advice changes. Another provider, Battleface, also offers travel insurance for FCDO ‘Non Essential’ destinations worldwide.

Sanctioned countries such as Iran, North Korea, Syria, Cuba, Crimea, South Sudan and Venezuela are excluded.

It will also cover medical expenses for policyholders aged 59 or under if they catch Covid.

But it will not pay out for trip cancellations, curtailment of a holiday, self-isolation or lockdown restrictions.

A policy for a couple in their 40s visiting Greece for a week would cost around £48.

A travel insurance policy backed by the British Insurance Brokers Association (Biba), and available through its 1,800 members, is also offering Enhanced Covid-19 Cover for those who are travelling to Europe. 

You will be covered if you are travelling somewhere the FCDO advises against all but essential travel, and you have had both jabs.

The policy, with Jackson Lee Underwriting (JLU), covers medical expenses if you get Covid abroad, and cancellation costs if you are told to self-isolate by Test and Trace or have an adverse reaction to the vaccine.

However, you will not be covered if lockdown restrictions mean you cannot travel or the Government advice changes and you decide to cancel your trip.

A handful of other insurers, such as Axa and Cedartree, say they will also cover you if you travel against FCDO advice, but Covid-related claims may be excluded.

Cancellations: Not all airlines and travel firms will allow customers to move their trip fee-free, so it may be worth checking a policy ensures you will not be left out of pocket if you can’t go

Those last minute changes to rules

If you are travelling to a country that has been given the green light by the FCDO, you have a much greater choice of cover.

Most will cover any medical expenses should you catch the virus while on holiday.

But you will need to check the small print carefully as you may not be protected for every Covid-related crisis.

Providers with five-star Covid cover include AA, Avanti, EasyJet and Saga, according to consumer group Fairer Finance.

However there could still be gaps in your cover. The most common exclusions include:

• Cancellations because your destination has gone into lockdown;
• A household member catches coronavirus and you are unable to travel;
• A close relative dies or is hospitalised with the virus;
• Extra costs for food or accommodation if you catch Covid abroad and have to extend your trip.

James Daley, from Fairer Finance, says: ‘The truth is that there are enormous variation across the policies on offer. Many will cover certain events relating to Covid but not all.

‘For example, only around one in four policies will cover you if the person you’re going to stay with gets Covid or is ordered to self-isolate. 

So it really is a minefield right now.’ One of the most sought-after types of cover is for cancellations in the event the Government suddenly changes its travel advice.

As we saw with France at the weekend, rules can change overnight — and if you have a job where you cannot isolate on your return, a policy that will pay out in this instance is worth its weight in gold.

Not all airlines and travel firms will allow customers to move their trip fee-free, and this cover ensures you will not be left out of pocket if you can’t go.

Aviva says its travel disruption cover will pay out for cancellations if FCDO advice changes within 31 days of departure and you have travel disruption cover.

It will cover you if the FCDO advice changes and you have to come home, but only if you have a return flight booked. You cannot make a claim if FCDO advice was in place at the time you booked your trip or purchased the insurance — whichever is later.

You are covered if the UK goes into lockdown before your holiday, if there were no Government or local lockdown restrictions in place, or announced, when you took out the cover or booked your trip — whatever you did last. 

It will also consider claims if you test positive for coronavirus or are advised to self-isolate by Track and Trace or receive a notification from the NHS app.

A couple in their 40s would pay around £66 for a single trip policy if they were to travel to Spain in August and stay for a week.

Providers with five star Covid cover include AA, Avanti, EasyJet and Saga, according to consumer group Fairer Finance. However there could still be gaps in your cover

Grounded by the pingdemic

There are around 30 to 40 policies on the market that currently offer cover if you cannot travel because you are told to self-isolate by Test and Trace, according to Which? 

But holidaymakers should double check this also includes cover if you are pinged by the NHS app, as unlike Test and Trace, advice to self-isolate is guidance rather than law.

The AA, Aviva and AllClear say they will all cover you for cancellations in both instances.

If you are pinged by the app or notified by Test and Trace, you are covered by both AXA and Cedar Tree, regardless of what tier of cover you pay for. 

These policies will also cover your medical bills if you catch Covid while overseas, except where customers have travelled against FCDO advice where cover may be restricted.

With Cedartree, a couple in their 40s would pay between £20.50 and £36.50 for a single trip policy for a week in Spain. But you will not be covered if the Government advice changes and you need to cancel.

If you are already abroad when the advice changes, the policy will pay for lost holiday days if you have to return early.

Banking on peace of mind

There are two travel insurance policies that offer ‘complete cover’, according to Which?

This is its top rating and cover includes medical bills if you catch Covid abroad as well as cancellation if FCDO advice changes, you are told to self-isolate or catch Covid before you travel.

But you will need to open a bank account with Barclays or HSBC first — and there could still be some small print that may trip you up.

Barclays’ Travel Pack costs £12.50 a month, and you must hold it for at least six months.

The travel policy, provided by Aviva, will cover you, a partner if you live with them, and dependent children travelling with you if they are under 23. You and your partner must be aged 79 or under.

You will not be covered for cancellations if the FCDO had advised against non-essential travel when you booked or bought the policy based on the last purchase.

You will also not be covered if restrictions were put in place before you left and you later cut your holiday short.

Your cover could be impacted if you have had a previous Covid infection and Barclays has excluded it.

Barclays says as standard there is no cover for any claims caused by an existing medical condition unless confirmed otherwise.

HSBC Select And Cover starts at £19.50 a month and you will benefit from at least three insurance policies, including travel if you choose.

The policy will pay out if the country you are travelling to unexpectedly moves to the red list and you need to return early.

You will also be covered for cancellations if FCDO advice changes after you have booked your trip, and if you cannot travel because you have to self-isolate or the country you are visiting goes into lockdown.

But you cannot claim if you want to cancel because the Government brings in quarantine rules for when you are due to return — as we saw with France last weekend.

Customers are also only eligible for cover up to the age of 70 and must be registered for online banking.

And finally, a note of caution 

Travellers should beware buying multiple policies to ensure they are covered for all eventualities, because doubling up on cover could backfire.

Anna-Marie Duthie, from ratings site Defaqto, says: ‘Even if you only claim on one policy, you must notify the insurer if you have other policies that cover the same risks.

‘That insurer may then only pay a share of the claim and could in some cases refuse to let you claim at all.’

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