The real risk of traveling without insurance

Recent discussions have highlighted the sharp rise in car insurance costs, with premiums increasing by over 25% in 2023, as reported by Which?. This spike in costs is frustrating for drivers who have no choice but to insure their vehicles. Unlike car insurance, travel insurance isn’t mandatory for most vacations, with exceptions like cruises and some package holidays. This flexibility leads some travelers to consider skipping it, despite its climbing costs.

Government and industry experts consistently advise against traveling uninsured, warning of high risks and potential costs. For example, a medical emergency like a heart attack in Florida or a severe accident in Vancouver could result in astronomical medical bills from extended hospital stays. In developing countries, emergency repatriation could cost tens of thousands.

Despite these risks, a recent Staysure survey found that 12% of British travelers have gone abroad without insurance in the last three years, and a quarter are considering it. Older travelers tend to be more cautious, but even among those over 55, 13% would consider traveling uninsured.

A reader, whom I’ll refer to as May, shared that she’s considering foregoing travel insurance due to its high cost as she ages and her medical conditions, which increase her premiums significantly. She noted that declaring her conditions not only raises her premiums but often excludes those conditions from coverage, making her feel uninsured regardless.

May argues that with her GHIC card, she has access to emergency medical treatment within the EU, which, though not free, is provided under the same conditions as for locals. She believes additional costs, if needed, could be managed without flying, possibly by rail or road.

While May’s perspective is understandable, especially with the financial burden of high premiums as one ages, it overlooks the broader protections travel insurance offers. These include coverage for cancellations, theft, lost luggage, and the potential financial collapse of travel providers. Moreover, the organizational support from insurance in coordinating medical care and repatriation is invaluable, particularly in emergencies. This level of support can offer significant reassurance in stressful situations, emphasizing the importance of travel insurance beyond mere medical coverage.