6 ways to compare backpacker travel insurance

Backpacking will be one of the most exciting and life-changing things you'll ever do. But the spontaneity and complexity of travelling means it's important you have the right insurance - both to save you money and to make sure you're covered for every eventuality.

To help you sort through the different features and compare backpacker travel insurance policies, we’ve written a short guide on six ways you can compare policies to make sure you get the right one for you.

Alternatively, if you prefer, you can skip straight to our list of the Top 10 Backpacker Travel Insurance policies.

Our 6 Steps to the Best Backpacker Insurance:

1. Compare Baggage and Cancellation Limits
2. Compare the Detailed Limits
3. Compare the Excess
4. Check the Cover for Activities
5. Check the Rules on Return Trips
6. Check the Maximum Trip Length and Flexibility

Step 1: Compare Baggage and Cancellation limits

Insurers restrict the amount you can claim for baggage and cancellation by specifying a limit for each. For example, £750 would be a typical cancellation limit for a cheaper policy such as TopDog Travel Insurance Economy.

Consider your plans and compare them to these limits – as a backpacker planning a long journey you could have several long-haul flights and £750 would probably not be enough if you had to cancel them all. Equally, if you are carrying expensive gear, the £750 of baggage cover provided by Columbus Direct's Globetrotter policy may not be enough.

The table below compares the cancellation and baggage limits of the basic policies from some of our top travel insurance providers. These are the cheapest levels of cover offered by the insurers (if they offer tiers of cover):

If you're going on a more expensive trip, or are flying very frequently, you might want to consider purchasing a higher level of cover. The highest limit from one of our Top 10 Providers was Flexicover's Gap Year Platinum, which offers a £10,000 cancellation limit.

The inside info: Backpacker insurance cover can be made cheaper by reducing these limits – especially on baggage – by assuming that, as a backpacker, you will travel light. So, when you compare backpacker insurance and see a cheap policy, make sure you check the limits in case your bags disappear...

Step 2: Compare the Detailed Limits

As well as the Baggage and Cancellation limits above, you'll find limits within a policy for specific items. For example, insurers may place a limit on the amount they will pay out for cash that is stolen (typically £100 or £200). Or they may place ‘single item’ limits for your valuables of maybe £100 or £200, meaning that you cannot claim more than that amount for any one item such as your camera or phone.

Additionally, policies will usually have a total valuables limit, such as £250. This means that if the single item limit was £100, you could insure two valuables worth £100 each. Sometimes, though, the limit will be the same as the single article limit, meaning you may only be covered for one valuable.

While this limit may cover other valuables like jewellery or watches, it's unlikely to protect your £500 smartphone or expensive laptop. So if you happen to leave your mobile phone on a train, it wouldn't be covered for its full amount, potentially leaving you out of pocket.

Top Dog Insurance has tackled this problem by offering a £2,000 limit for phones & gadgets, but a £500 maximum limit for other valuables. This recognises that for many travellers it's unthinkable to be without their laptop and smart phone, while encouraging them to leave expensive jewellery at home.

The table below compares some of our top backpacker insurance providers in terms of their single article limit and gadget cover:

The inside info: The latest iPhone 6 can cost in excess of £700 so check the detailed limits in your policy to ensure such valuable items really are covered. You can read more about getting travel insurance to cover valuable single items here.

Step 3: Compare the Excess

Not only will insurers limit the amount you can claim, but they also want you to do your best to avoid claiming in the first place. As a result, they specify an ‘Excess’ – this is the amount you are responsible for before the insurer will start paying out. It can be £200 on cheaper Backpacker Insurance policies compared to nil on more comprehensive ones like Top Dog Travel Insurance's Platinum policy.

The inside info: Backpacking can often take people to areas where security is lower and petty crime is higher. As such, experiencing several small thefts can be as likely as experiencing one large one. If your Excess is high, those small events could be completely your responsibility.

Step 4: Check the cover for Activities

Almost every backpacker will have some sort of activity planned. From SCUBA diving to hill-walking, the opportunities are nearly endless. Insurers recognize that some of these activities are very safe and unlikely to lead to a claim, whereas others are much more dangerous. To make sure you’re not paying for cover you don’t need, they separate the more dangerous activities and ask you to pay extra for cover.

For example, TopDog's Backpacker Insurance automatically covers more than 100 activities, including bungee jumping, water sports, and scuba diving to 30m - but winter sports such as off piste skiing require extra cover.

The inside info: Insurers’ views on the risks of activities vary (for example Kite Surfing can be considered very safe by some and in their lowest risk category, whereas others consider it riskier and put it in their top category). It's worth shopping around as cover for your specific plans may be cheaper.

Step 5: Check the rules on Return trips

Being away for a long period of time can be tough. Poor connectivity, or simply having a good time elsewhere, means you can be out of touch with friends and family back home for months. Some backpackers will ensure that they have a week or two back at home in the middle, to catch up with friends and stop the parents from worrying!

However, you will need to check how your insurer considers this – since you have returned to where your trip started, some will consider the trip has finished and you will not be covered again when you leave.

The inside info: Many policies build in the opportunity to spend a limited number of weeks or have a limited number of visits home within the duration of the policy. The AA - Backpacker Travel Insurance, for example, allows you a trip home of up to 14 days as standard. Others allow you to return - and in fact provide for it - but only in the case of a family emergency or similar.

Step 6: Check the Maximum trip length and Flexibility

The beauty of backpacking can be the uncertainty – being away for such a long time allows the opportunity to create plans on the fly and go where you please. Chances are that you will be having a great time, and if money and commitments allow, you might stay away longer than you originally planned. However, you may find that your insurance doesn’t have the same flexibility. Insurers will specify the longest duration of their policy – 6, 12 or 18 months is normal – however they may take a different view on extending your original policy.

If you're planning a really long trip (we're jealous), STA Travel Insurance is one example of a backpacker policy that covers you for up to 24 months.

Some insurers, like the Post Office will let you extend your trip up to an additional 60 days, while others like Alpha Travel Insurance Long Stay will let you extend your travel indefinitely as long as you contact them each time before your policy is due to end.

Others will only let you extend your cover to a later date in the case of unexpected circumstances, like delayed flights.

The table below compares the basic backpacker travel insurance policies from some of our top insurers in terms of their maximum trip duration and flexibility:

The inside info: Cheaper policies can mean that you are not able to extend them at all, and getting new cover can be difficult as many insurers will not provide a policy if your trip has already begun.

Want to learn more about Backpacker Insurance?

• Join our Backpacker Travel Insurance Group and get 10% off Backpacker Insurance from Explorer
• Get an understanding of the basics of backpacker travel insurance.
• See a list of insurers who provide backpacker travel insurance in our separate article.
• Read what your backpacker insurance policy really covers and the common errors that people can make when deciding on their backpacker insurance