Your handy travel finances jargon buster

Every year, millions of people jet off on holiday and most will have taken out a travel insurance policy and bought foreign currency. But there may be words and phrases that providers use that aren’t so easy to understand. To help, we’ve put together this useful guide to help explain the common terms you're likely to come across.

Adventure sport cover

Specialist insurance cover that provides protection for activities that are usually excluded by a regular policy. Activities could include rock climbing, bungee jumping and skydiving.

Annual multi-trip insurance

One travel insurance policy that covers you for multiple trips taken over the course of a year. This can sometimes work out cheaper than buying a policy per trip.

Airline insolvency cover

Can be included as standard in a travel insurance policy or may be an optional add-on. It covers you in the event an airline goes out of business either before or during your trip.

ATM usage abroad

In the terms and conditions for your bank account or credit card, you’ll be able to see your provider’s rules and any charges for using ATM machines abroad.

Baggage cover

Provides cover for lost or stolen luggage. This is standard in many travel insurance policies, with an option to increase the cover for higher value baggage.

Buy-back rate

The exchange rate that’s offered when you want to sell unused currency back to the provider.

Cancellation cover

Offers protection if you have to cancel your trip due to unforeseen circumstances. It’s important to check the scenarios covered so you have the protection you need.

Commission / commission free

Commission is the service fee charged by travel money providers to exchange your currency. Many travel money providers will buy back unused currency commission free, so you don’t pay any extra.

Cruise cover

Either an add-on or separate policy that includes cruise-specific protection. This can include missed ports, cabin confinement or onboard medical treatment.

Delayed departure cover

Pays out if your scheduled departure is significantly delayed due to specific reasons outlined in your policy. It can reimburse you for expenses like food, accommodation or transport. 

Emergency medical expenses

Cover for treatment if you fall ill or are unexpectedly injured while travelling.

Excess

The amount you will need to contribute to any insurance claim. Insurers may set a compulsory excess amount and you can choose an additional voluntary amount to lower your premiums.

Exchange rate

The rate that one currency is swapped for another. The exchange rate determines how much foreign currency you get for your pounds.

Exclusions

Scenarios or personal items that aren’t covered by a travel insurance policy. It’s important to check what they are before you travel and are listed in the policy wording.

Family travel insurance

Cover that includes multiple people in a family named on the policy. This type of policy can sometimes work out cheaper than buying separate policies.

Foreign transaction fee

Charged by your credit card or bank when you make a purchase in a foreign currency or through a foreign bank.

Global / worldwide cover

This type of policy includes travel outside of Europe. Visiting some countries may result in a more expensive premium.

Gadget cover

Some policies may provide this as standard or you can buy optional or additional protection for phones, cameras and laptops.

Load / top-up

The process of adding money to a prepaid travel card. This can usually be done via an app or by bank transfer.

Loading fee

This is a fee some providers charge for topping up a prepaid travel money card.

Load limit

The minimum or maximum amount of money you can add to your prepaid travel money card.

Medical expenses cover

Part of your travel insurance policy that covers you for unexpected medical treatment while you’re away.

Medical screening

The process during your travel insurance application where you declare any existing medical conditions. You may be asked follow up questions so the insurer can assess whether they’re able to cover you.

Missed departure cover

This covers you if you missed your flight due to unforeseen and unpreventable circumstances like delays to public transport or the breakdown of a vehicle. It won’t cover you for situations like oversleeping or getting your flight time wrong.

Multi-currency card

A prepaid card that allows you to switch between multiple currencies on one card. This can be used when people are travelling across multiple countries during one trip.

Non-sterling transaction fee

If you choose to pay for your purchases abroad using a foreign currency, you may be charged this type of fee. Your bank or credit card provider will list the fees in your account documentation or on their website.

Overseas spending limit

This is a daily or monthly cap that your bank could set for card transactions made while overseas.

Policy schedule

A document summarising what is and isn’t covered for your travel insurance, the cover levels and any optional extras.

Pre-existing medical conditions

Health conditions you already have before buying a travel insurance policy. Depending on the condition, you may be asked to pay a higher premium. Some insurers specialise in cover for pre-existing medical conditions.

Prepaid travel card

A card you load up with money before travelling. You can use it like a debit card abroad to spend in local currency, without worrying about carrying cash around.

Repatriation

In a travel insurance policy, this covers the cost of returning someone to the UK due to medical reasons or if they pass away while abroad.

Rental-car excess insurance

This covers you for the excess fee charged by car hire companies if the car is damaged or stolen. The excess amount can often be high, so this type of cover can help manage the cost.

Single-trip insurance

A travel insurance policy that provides cover for one trip only, from the start to the end dates you specify.

Valuables limit

The maximum amount your travel insurer will pay for items like electronics or jewellery.

Winter sports cover

Optional add-on for travel insurance that covers activities like skiing and snowboarding, which can include equipment or piste closure.