Why travel insurance goes wrong, and what you can do about it

If your holiday plans are thrown into disarray by illness or injury, your luggage going missing or a natural disaster, your travel insurance policy can be your best friend.

But if your claim is met with a surprise rejection, it's an added blow at the worst possible time.

To help you avoid this, we've outlined five key pitfalls that have led policies to fail when most needed, based on what we've heard over the years from Which? members. 

We also provide tips on how to best avoid these tripwires or what to do when they happen.  

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1. Your cover runs out

You get a text from your airline provider stating that your return flight has been pushed back a day. Or you're visiting family overseas, and a complication arises that requires you to rearrange some of your plans. Or maybe you're just having a lovely time overseas and want to enjoy it a bit longer.

All of these scenarios could lead to you extending your time away and potentially overstaying the length of time you're covered for. This is no small matter, because if something happens during that period, you'll be on your own.

With single-trip insurance, you'll have specified the length of your holiday when buying your policy. Of the 145 annual policies we assessed in our travel insurance analysis, the standard length of time covered per trip was typically 30-40 days, although it was sometimes as high as 94 days.

If you're stuck overseas for reasons that aren't your fault (for example, if flights have been cancelled or you're too ill to travel), your insurer should be willing to extend your cover.

However, if you've decided to change your plans beyond the period covered, you'll need to buy extra cover to last you until you get home.

Either way, check your policy, be aware of when your cover runs out and contact your insurer as soon as possible if something affects your schedule.

A complicating factor can be that the time covered per trip varies significantly depending on your age. For example, one annual policy we looked at covers travellers' trips of up to 60 days for policyholders aged 65 or under, but just 21 days for older travellers.

• Find out more: Best travel insurance companies and policies 2025 

2. You don't have the cover you thought you did

Unfortunately, travel insurance is often bought in a rush, with many travellers mistakenly assuming policies are all likely to be similar.

But subtle details can make a big difference if something's gone wrong with your travel plans. 

For example, almost all policies have curtailment cover, which allows you to reclaim costs you've been unable to recoup if you had to return home prematurely. However, if you didn't have to come home but lost out on a portion of your holiday because you were ill, three in 10 policies won't allow you to claim for the expenses of missed activities (such as tours or shows). 

Even in situations where a claim has been possible, some travellers have found other constraints on what was paid – such as policy limits or the size of the excess – to be an unwelcome surprise.

The only way to avoid this kind of disappointment is to carefully check the policy wording. However, you can also check our reviews of insurers to see how they compare on key features.

• Find out more: See our guide for tips on how to examine your insurance policy

3. You don't have the evidence the insurer requires

Insurers can request all kinds of paperwork, from a police report about a theft, to a doctor's note explaining that you weren't fit to travel, to receipts for missing items.

Insurers are supposed to be reasonable (we won't all have receipts for decades-old purchases), but the best way to make your life as easy as possible is to contact your insurer as soon as you think you might need to claim, and ask it to talk you through any requirements. 

You'll probably have an easier time obtaining police reports while you're still in the country than weeks later when the insurer points out that it's required.

• Find out more: How to make a travel insurance claim

4. You're getting bounced between companies

Travel insurance claims can drag on for months and can sometimes be brought to a screeching halt when there's a dispute.

Insurers usually state in their T&Cs that they expect you to have exhausted all other options before making a claim. 

For example, if your holiday was cancelled because your airline or holiday provider couldn't get you to your destination, you should be able to seek reimbursement from the holiday provider. 

Similarly, if your hotel went out of business but you paid by credit card, your purchase should be legally protected under Section 75 of the Consumer Credit Act.

This hasn't prevented situations where some unscrupulous businesses have recommended their customers try their insurers, and insurers have sent them right back, making for a highly stressful 'piggy in the middle' experience.

You can't control how companies will treat you, but there are some things you can do to mitigate the chances of a claim becoming a drawn-out ordeal:

• Know your rights. Depending on the type of holiday and how you bought it, various consumer protections can apply. You can find out about these in our guide.  
• Give the insurer advance notice. Even if you think you're entitled to redress from elsewhere, let the insurer know as soon as possible what's happened. That should help to smooth the claim process should one become necessary.

5. The insurer mishandles your claim

Travel insurers haven't been covering themselves in glory when it comes to claims handling.

According to the most recent data published by the Financial Conduct Authority (reflective of the year 2023), roughly one in five claims were rejected. It's a slight improvement on the previous year, but is still worse compared with other kinds of insurance.

The data also suggests that travel insurance customers are more likely than average to make a complaint if they claim. We've heard from lots of customers who have found themselves in disputes about the finer points of policy wording, or who haven't been able to get straight answers about why their claims have stopped progressing.

You're entitled to fair treatment and clear communications from your insurer. If something's gone wrong, complaining is often the most effective way to get it resolved. 

The best way to do this is to write to the insurer, clearly stating that you're making a complaint. Try to keep things polite and explain the issue as clearly as possible, along with what you'd like to happen for the situation to be resolved satisfactorily. 

Insurers uphold 57% of complaints made to them. However, if you remain unhappy with the outcome, you can take your complaint to the Financial Ombudsman Service, which will re-examine the case and make its own judgement.

• Find out more: Our guide on complaining to insurers