Section 75 vs Travel Insurance

Why understanding the difference matters

When booking a holiday, many UK travellers believe that paying by credit card provides enough protection to skip travel insurance. This is a common misconception that can lead to significant financial loss. Section 75 is a legal mechanism that makes your credit card provider jointly liable with the retailer if things go wrong with a purchase. However, it is strictly limited to contractual issues and does not cover personal mishaps, illness, or third-party accidents. Travel insurance is a private contract that covers your personal risks, ensuring you are not left with a five-figure bill for an air ambulance or emergency surgery in a foreign country.

• Section 75 is a statutory right under UK law
• Insurance is a discretionary purchase for personal risk
• Credit cards do not cover medical repatriation
• Both can work together to provide full trip security
• Section 75 applies to purchases between £100 and £30,000

What Section 75 covers for travellers

Section 75 applies when you use a credit card to pay for a service, such as a flight or hotel, costing over £100. If the airline goes bust or the hotel fails to provide the room you booked, you can claim the money back from your bank. This is particularly useful for 'flight-only' bookings that might not have ATOL protection. It also covers situations where the service was misrepresented. For example, if a tour operator promises a luxury villa but provides a budget apartment, your credit card provider may be liable for the breach of contract. It is a powerful tool for financial recovery when a business fails to deliver what you paid for.

• Total purchase price must be over £100 and under £30,000
• Applies even if you only paid the deposit on the card
• Covers company insolvency and breach of contract
• Provides a route for refunds if the merchant refuses to pay
• Does not apply to debit card payments (though Chargeback may)

What travel insurance covers that cards do not

The most significant gap in Section 75 protection is the lack of cover for personal circumstances. If you fall ill before your trip and need to cancel, your credit card company has no obligation to refund you because the airline is still capable of providing the flight. Similarly, if you require emergency medical treatment in the USA or Spain, your credit card will not pay the hospital. Travel insurance is designed to protect you against these unpredictable events, including lost baggage, theft of cash, and personal liability if you accidentally injure someone else while on holiday.

• Emergency medical expenses and dental care
• 24-hour medical emergency assistance helplines
• Cancellation due to bereavement or redundancy
• Theft of personal belongings and passports
• Legal expenses and personal liability cover
• Curtailment if you have to return home early

Typical costs and pricing factors

The cost of travel insurance varies based on your age, destination, and health status. For a typical one-week trip to Europe in 2026, a healthy traveller might pay between £15 and £45 for a standard policy. Prices increase significantly for travel to the USA due to high healthcare costs, or if you have pre-existing medical conditions. Section 75 protection is effectively free, as it is a legal right included with your credit card, but it should never be used as a substitute for the medical cover provided by a paid insurance policy. Always ensure your insurance policy limit for medical expenses is at least £2 million for Europe and £5 million elsewhere.

Choosing cover for pre-existing conditions

If you have a pre-existing medical condition, Section 75 offers no protection if that condition causes you to cancel your trip. You must declare all medical history to your travel insurer to ensure your policy is valid. Failing to disclose a condition, such as asthma or high blood pressure, can lead to a claim being rejected. Specialist insurers exist for those with more serious conditions, and the MoneyHelper service provides a directory for travellers who may find it difficult to obtain standard cover. Always check that your destination is covered by your policy, especially if the FCDO advises against travel, as this can void both your insurance and your ability to claim via other routes.

How to make a claim and gather evidence

The claims process for Section 75 vs insurance differs greatly. For a Section 75 claim, you must write to your credit card provider stating you are making a claim under Section 75 of the Consumer Credit Act. You will need copies of receipts, booking confirmations, and evidence of the breach of contract. For travel insurance, you must contact your insurer as soon as possible, often within 48 hours for medical emergencies. You will need police reports for thefts, or medical certificates from a doctor if you are cancelling due to illness. Keeping a clear paper trail is essential for success in either type of claim.

Regulatory context and the FOS

Both travel insurance companies and credit card providers are regulated by the Financial Conduct Authority (FCA). This means they must treat customers fairly. If you have a dispute regarding a Section 75 claim or a travel insurance payout, you have the right to escalate your complaint. After following the firm's internal complaints procedure, you can take your case to the Financial Ombudsman Service (FOS). The FOS provides a free, independent service to resolve disputes. Additionally, for travel within the EU, always carry a Global Health Insurance Card (GHIC), as many insurers require this to waive the policy excess.

Practical checklist for UK travellers

To ensure you have the maximum protection for your next trip, follow these steps to combine the benefits of legal rights and private insurance. Using a credit card for the initial deposit ensures you have a fallback if the company collapses, while a comprehensive insurance policy looks after your physical wellbeing and personal property. Never rely on one alone.

• Pay at least the deposit (over £100) on a UK credit card
• Buy travel insurance the same day you book your trip
• Check the FCDO website for the latest travel warnings
• Declare all medical conditions to your insurance provider
• Carry your GHIC for any travel to EU destinations
• Keep digital copies of your policy and credit card details