How to find policy limits?

Why understanding policy limits matters

Policy limits are the financial ceilings on your insurance cover. If you experience an emergency abroad, the insurer will only pay up to the amount specified in your policy schedule. Understanding these limits prevents a situation where you are left with a significant financial shortfall. For example, if your holiday costs £3,000 but your cancellation limit is only £1,000, you could lose £2,000 if you have to cancel for a valid reason. The Financial Conduct Authority (FCA) requires insurers to provide a clear Insurance Product Information Document (IPID) to help you compare these limits easily before purchase.

• Prevents out-of-pocket expenses during a claim
• Ensures high-value items like electronics are fully covered
• Helps you meet the requirements of certain travel destinations
• Allows for accurate comparison between different insurance tiers
• Reduces the risk of claim rejection due to under-insurance

What is typically covered by these limits

Most UK travel insurance policies divide their limits into several categories. The largest limit is usually for emergency medical expenses, which the Association of British Insurers (ABI) suggests should be at least £2 million for European travel and £5 million for worldwide trips. Other common categories include cancellation and curtailment, personal accident, legal liability, and baggage. It is important to note that these limits are often 'per person' rather than 'per policy', meaning a family of four would each have the stated limit for their individual needs.

• Emergency medical and repatriation costs
• Cancellation or cutting a trip short
• Loss, theft, or damage to personal possessions
• Travel delay and missed departure
• Personal liability if you accidentally injure someone
• Legal expenses for pursuing compensation

Common exclusions and sub-limits

Even if your overall baggage limit is £2,000, there is often a 'single article limit' which might be as low as £200 or £300. This means you cannot claim the full value of an expensive laptop or camera unless it is specifically listed or covered by an add-on. Furthermore, certain events are excluded from standard limits, such as incidents involving alcohol misuse or unauthorised adventure sports. Always check the 'General Exclusions' section of your policy wording to see where your limits do not apply.

Typical costs and pricing factors

The cost of your premium is directly linked to the limits you choose. A 'Basic' or 'Economy' policy with a £500 cancellation limit will cost significantly less than a 'Premium' policy offering £5,000 of cover. Pricing is also influenced by your age, destination, and any pre-existing medical conditions. For a typical one-week trip to Europe in 2026, a standard policy might range from £15 to £45 depending on the level of cover selected. Opting for a higher excess - the amount you pay towards a claim - can sometimes lower the premium, but it also reduces the net payout you receive.

Choosing limits for medical conditions and destinations

When travelling to countries with high healthcare costs, such as the USA, Canada, or Spain, higher medical limits are non-negotiable. If you have pre-existing medical conditions, you must declare them during the screening process. Failure to do so may void your entire medical limit. The MoneyHelper service provides a directory of specialist insurers for those with serious conditions who may find standard policy limits insufficient or unavailable. Always ensure your limit covers the cost of an air ambulance back to the UK, as this can cost tens of thousands of pounds.

Evidence required for claims

To claim against your policy limits, you must provide evidence of your loss. For medical claims, this includes hospital invoices and doctor reports. For stolen items, a police report obtained within 24 hours of the incident is usually mandatory. If you are claiming for a cancelled trip, you will need a medical certificate or a letter from your travel provider confirming the cancellation and any refunds already received. Keeping digital copies of receipts for high-value items is a practical way to ensure you can claim the maximum allowed under your single article limits.

• Original receipts or proof of ownership
• Police reports for theft or loss
• Medical reports and itemised hospital bills
• Confirmation of booking and cancellation invoices
• Death certificates or official redundancy notices
• Evidence of travel delays from the airline

Regulatory context and the GHIC

The Financial Ombudsman Service (FOS) handles disputes if you believe an insurer has unfairly applied a policy limit. It is also important to remember that the Global Health Insurance Card (GHIC) is not a substitute for travel insurance. While the GHIC provides access to state healthcare in the EU at the same cost as locals, it does not cover mountain rescue, repatriation, or private medical care. The Foreign, Commonwealth and Development Office (FCDO) strongly advises taking out comprehensive insurance with sufficient limits regardless of whether you hold a GHIC.

Practical checklist for checking limits

Before you pay for a policy, perform a final check of the documentation. Ensure the cancellation limit covers the total cost of your flights, accommodation, and pre-paid excursions. Check that the baggage limit is enough to replace your suitcase and its contents. Finally, confirm that the excess is an amount you can afford to pay in the event of a claim. If the limits seem too low, most insurers allow you to upgrade your cover level for an additional fee before your trip begins.