Many British holidaymakers could be heading abroad underinsured, as a recent analysis highlights significant gaps in annual travel insurance policies. A survey conducted in April 2026 revealed that half of those with annual cover had not updated their policies to reflect changes in their health, destinations, activities, or the overall cost of their trips, potentially leaving them vulnerable to substantial out-of-pocket expenses if they need to make a claim.
The comprehensive review, which examined 138 annual travel insurance policies, identified several critical areas where existing cover might fall short. A key concern is the declaration of health changes; 90% of policies mandated that any new medical conditions be reported before renewal or travel. Failure to do so could result in claims being reduced or even declined, particularly if the claim is linked to the undeclared condition. For some, particularly older travellers or those with pre-existing conditions, single-trip policies might offer more suitable and even cheaper cover.
Cancellation limits also vary wildly, ranging from just £500 to £25,000 among the 136 policies that included this cover. With a median limit of £3,000, around a third of policies offered £2,000 or less, which could be insufficient for more expensive holidays. Similarly, baggage and belongings cover showed wide disparities, with limits from £500 to £10,000 and a median of £2,000. This could prove inadequate for travellers carrying high-value items, specialist equipment, or expensive gadgets, as separate single-item limits often apply.
Furthermore, adventurous activities and cruises require careful scrutiny. While all 138 policies covered hiking as standard, altitude limits varied significantly, with a median of 3,000 metres. This could pose a problem for popular trekking destinations such as Mount Toubkal in Morocco, which reaches 4,167 metres and would exceed the standard limit on many policies. Travellers planning such trips may need to purchase optional extras or seek specialist cover.
Before embarking on their next adventure, UK travellers are strongly advised to meticulously review their annual travel insurance policy. This includes checking the fine print for health declaration requirements, ensuring cancellation limits match the cost of their holiday, confirming adequate baggage cover, and verifying that all planned activities and destinations, including specific altitude limits for hiking, are fully covered. Contacting their insurer directly for clarity on any potential ambiguities is a crucial step to ensure peace of mind.