RAC Holiday Insurance Review

Why RAC holiday insurance matters for UK travellers

While most people associate the RAC with roadside assistance, they have provided insurance products to the UK public for decades. Choosing a policy from a recognised brand like the RAC offers a sense of security, particularly as their travel products are underwritten by Aviva, one of the largest insurers in the UK. Having robust holiday insurance is vital to protect against the high costs of private medical treatment in countries like the USA or Spain, where costs can quickly exceed tens of thousands of pounds without adequate cover. It also ensures that if your airline or accommodation provider fails, or if you have to cancel due to unforeseen illness, you are not left out of pocket.

• Brand reliability from a long-standing UK motoring organisation
• Underwritten by Aviva Insurance Limited for financial security
• Access to a 24-hour medical emergency helpline for travellers
• Flexible cover options ranging from basic to premium protection
• Discounts often available for existing RAC breakdown members

What is covered by RAC policies

The RAC offers three distinct tiers of cover: Orange, Silver, and Gold. The Orange tier provides basic protection for those on a budget, while the Gold tier offers the highest limits for cancellation and baggage. Every policy includes emergency medical expenses, which is the most critical component for any UK traveller. Personal liability is also standard, protecting you if you accidentally injure someone or damage property while on holiday. Depending on the tier chosen, you may also benefit from cover for travel delays, missed departures, and legal expenses. It is important to check the specific policy document to ensure the limits meet the total value of your holiday booking.

• Emergency medical expenses up to £10 million on Gold policies
• Cancellation cover ranging from £1,000 to £5,000 per person
• Baggage and personal belongings cover up to £2,500
• Personal liability cover up to £2 million
• Cover for over 90 different sports and activities as standard

Exclusions and what is not covered

Like all UK travel insurance policies, RAC holiday insurance contains specific exclusions that travellers must be aware of before purchasing. Standard policies generally do not cover incidents related to alcohol or drug abuse, or illegal acts. Crucially, if you travel against the advice of the Foreign, Commonwealth and Development Office (FCDO), your policy will likely be void. Most policies also exclude claims arising from pre-existing medical conditions that were not fully disclosed and accepted during the application process. High-risk activities or professional sports usually require an additional premium or a specialist policy. Always read the 'General Exclusions' section of your policy wording to avoid unexpected claim denials.

• Undisclosed pre-existing medical conditions
• Travel to destinations where the FCDO advises against all travel
• Claims resulting from being under the influence of alcohol
• Loss or theft of unattended items in a public place
• Private medical treatment when public facilities are available

Typical costs and pricing factors

The cost of RAC holiday insurance is influenced by several factors including the traveller's age, the destination, and the duration of the trip. For a healthy 30-year-old taking a one-week trip to Europe, prices typically start from around £12 for basic cover. However, prices increase significantly for travel to the USA or Caribbean due to the high cost of healthcare in those regions. Annual policies are often more cost-effective for UK residents planning three or more trips per year. Adding optional extras, such as winter sports cover or cruise cover, will also increase the total premium. It is advisable to compare the cost of the different tiers to ensure you are not paying for more cover than you actually need.

Medical conditions and destination considerations

When applying for RAC holiday insurance, you must complete a medical screening process if you have any pre-existing conditions. Failure to declare conditions like asthma, high blood pressure, or diabetes can lead to claims being rejected. The RAC uses a standard screening system to determine if they can offer cover and at what extra cost. Regarding destinations, if you are travelling within the EU, the RAC expects you to carry a Global Health Insurance Card (GHIC). While the GHIC provides access to state healthcare, it is not a substitute for insurance as it does not cover repatriation to the UK or the cost of private rescue.

How to make a claim and required evidence

To make a successful claim with the RAC, you must provide documented evidence of your loss or emergency. For medical claims, you must contact their 24-hour emergency assistance team as soon as possible, especially before agreeing to expensive private treatments. For theft or loss of property, a police report obtained within 24 hours of the incident is usually mandatory. If you are claiming for a cancelled trip, you will need to provide invoices from your travel agent or airline and medical certificates if the cancellation was due to illness. Keeping a digital folder of all receipts and booking confirmations during your trip can significantly speed up the claims process upon your return to the UK.

Regulatory context and consumer protection

RAC travel insurance is regulated by the Financial Conduct Authority (FCA), ensuring that the products are sold fairly and transparently. As the policies are underwritten by Aviva, customers are also protected by the Financial Services Compensation Scheme (FSCS). This means that if the insurer becomes insolvent, you may be entitled to compensation. If you have a dispute with the RAC regarding a claim that cannot be resolved through their internal complaints procedure, you have the right to take your case to the Financial Ombudsman Service (FOS). This regulatory framework provides a vital safety net for UK consumers, ensuring they are treated reasonably and have a path for redress.

Practical checklist for RAC policyholders

Before you head to the airport, there are several steps you should take to ensure your RAC holiday insurance is ready to use. First, double-check that your destination is covered - for example, ensuring 'Europe' includes countries like Turkey or Egypt if that is where you are heading. Print a copy of your policy schedule and the emergency contact numbers, or save them to your phone for offline access. Ensure your GHIC is in date if travelling to Europe, and verify that any specific activities you plan to do, such as scuba diving or skiing, are included in your policy tier or added as an extra.

• Check that your trip dates match your policy schedule exactly
• Save the 24-hour emergency medical number to your phone
• Verify that all pre-existing conditions are listed on the certificate
• Ensure your baggage limit covers your most expensive items
• Confirm your FCDO destination status before departure