Last reviewed: 1 June 2026
UK travellers are reshaping how they buy travel insurance for summer 2026, according to research from AllClear Travel Insurance published in late May. 68 percent of UK adults planning a holiday this summer said they would prioritise either top-quality cover or strong policy features. Only 15 percent said they would shop primarily for the cheapest option available. The shift follows the outbreak of the Iran conflict and concerns about disruption to international travel.
- AllClear research: 68 percent of UK summer 2026 holidaymakers prioritise cover quality over price
- Just 15 percent will choose the cheapest policy
- ABI 2024 data: £472 million paid out across more than 500,000 travel claims
- Average emergency medical claim: £1,528
- One reported claim exceeded £1 million (US hospital treatment plus repatriation)
- UK travel insurance market: around £980 million in 2024 premiums
- Travellers with pre-existing medical conditions willing to pay more for comprehensive cover: 35 percent (up from 23 percent in 12 months)
What the data shows
The AllClear research, conducted after the outbreak of conflict in the Middle East, found that safety and coverage quality have overtaken price as the leading consideration in policy selection. Medical expenses remain the single most common cause of claims, accounting for 34 percent of all travel insurance payouts in 2024 according to the Association of British Insurers. Total medical payouts reached £262 million, with an average claim value of £1,528. At least one reported claim exceeded £1 million, involving emergency hospital care in the United States and subsequent repatriation to the UK.
Where cover gaps tend to appear
Earlier 2026 analysis by Go.Compare of 928 single-trip travel insurance policies, based on Defaqto data, found that 2 percent of policies offered no cancellation cover at all. A further 6 percent offered it only as an optional add-on, and one in five (20 percent) capped cancellation cover between £1,000 and £1,999. The average UK holiday spend in 2025 was £2,644 according to Go.Compare research, meaning a fifth of policies would not fully cover a typical cancelled trip.
How costs are moving
Travel insurance premiums have risen in the past year but not at the pace seen in motor or home insurance. A growing number of cities and countries have introduced or increased tourist taxes, and Air Passenger Duty rates also rose from April 2026. YouGov data published on 1 June 2026 found that 44 percent of UK non-parents and 40 percent of UK parents say cost of living concerns are affecting summer travel plans. Off-peak travel was the most common money-saving measure, used by 31 percent of UK adults.
What to look for in a policy
Standard cover should include medical and emergency expenses (commonly £5 million to £10 million in cover), repatriation, cancellation up to the actual cost of the holiday, baggage and personal possessions, and 24-hour assistance. Travellers with pre-existing medical conditions should declare them, as undeclared conditions can void cover for claims linked to that condition. Cover for unexpected events such as supplier bankruptcy, strikes or civil unrest is included on better policies but excluded from many cheaper ones.
The geopolitical factor
YouGov DestinationIndex data shows that the Iran conflict has affected consumer perceptions of destinations including Dubai, Turkey, Israel and the United States. Standard travel insurance typically excludes claims arising in destinations against which the Foreign, Commonwealth and Development Office has advised against all but essential travel. Travellers should check FCDO guidance before purchasing cover and again before departure.
FAQs
Do I need travel insurance for Europe in 2026?
It is not a legal requirement, but the European Health Insurance Card and its UK successor cover only state-provided emergency medical care, not repatriation, cancellation, lost baggage or supplier failure. Most travel agents and tour operators recommend insurance.
How much medical cover is enough?
For European travel, £5 million is generally considered the minimum. For travel to the United States, where treatment costs are far higher, £10 million is widely recommended. At least one ABI-reported claim in 2024 exceeded £1 million.
What if I have a pre-existing medical condition?
Declare all conditions when buying the policy. Undeclared conditions can void claims linked to that condition. Specialist insurers cover conditions that standard insurers will not.
Does travel insurance cover cancellation due to airline collapse?
It depends on the policy. Some include supplier failure cover automatically; some offer it as an add-on; some exclude it. Check the policy summary before buying.
