Travelling can be stressful with a lack of preparation, but with careful planning, you can avoid any unwanted situations and annoyances that could potentially ruin your holiday. This includes avoiding expensive transaction fees with a prepaid travel card, accessing the internet anywhere with an eSIM and VPN, and being fully covered with the correct travel insurance. Many travellers overlook these small expenses, underestimating how the convenience they provide can positively impact their trip.
Whether you’re venturing on your first backpacking trip in Southeast Asia, you’re taking the family on their first trip outside Europe, or your job requires you to regularly visit far-flung parts of the world, a little bit of prep can go a long way.
In this guide, we’ll outline the benefits of prepaid travel cards, eSIMs, and VPNs, while emphasising the importance of travel insurance and helping you pick the right package for your trip. Even a long weekend in the EU can throw up a few unwanted curveballs, so make sure you’re fully covered and have access to everything you need.
Key Takeaways:
Prepaid travel cards help you lock in exchange rates and avoid foreign transaction fees, making budgeting easier abroad.
Always read your travel insurance policy exclusions carefully — activities like skiing, water sports, and high-altitude trekking usually require extra cover.
Pre-existing medical conditions must be declared when taking out travel insurance, or your policy could be invalidated.
A VPN protects your data on public Wi-Fi and gives you access to UK content and services that may be restricted abroad.
A travel SIM or eSIM avoids hefty roaming charges.
What is a Pre-Paid Travel Card
Prepaid travel cards are a simple way to manage your spending money while travelling, allowing you to lock in an exchange rate and manage your day-to-day budget. They’re linked directly to your bank account, and adding funds is easy. Once the card is topped up, you can use it as a normal contactless debit or credit card.
Prepaid cards are popular because of their fraud safeguards. This includes the ability to immediately freeze the card in the app if you notice unusual activity. However, the main reason to use prepaid travel cards is to avoid foreign transaction fees, as you are effectively paying in the currency of the country you are travelling in, using just your preloaded balance.
With some cards, you might load the card with Pound Sterling, and then this is converted into the currency of the country you’re travelling in; however, the conversion rates are usually much more generous than you might find on the high street or at the airport.
Pre-Paid Travel Cards Vs. Credit Cards Vs. Debit Cards
Many people just use their normal debit or credit cards when travelling abroad, but this can often incur significant transaction fees, especially if you are travelling for a long time. Here’s a breakdown of each card format.
Prepaid Travel Cards
The key benefits of a prepaid travel card are that you can lock in the exchange rate when you top up the card, and they make it very easy to budget for your entire trip. Converting to an e-currency also means you’ll often avoid transaction fees when withdrawing from a cash machine, which can be extremely high in some countries. Options like Wise and Currensea are ideal for long-term travellers who are on a strict budget, or for anyone keen to manage their costs while on holiday.
Credit Cards
Some specialist credit cards sometimes offer fee-free spending abroad as well as competitive exchange rates based on the wholesale rate provided by Visa and Mastercard. Some also have cashback or reward programmes that incentivise using them while travelling.
As with any credit card, the balance must be paid off within a certain timeframe to avoid any additional fees. You must also be careful to reject the Dynamic Currency Conversion (DCC) option on payment terminals, as this will almost certainly result in a worse conversion rate.
Debit Cards
Debit cards from high street banks usually incur transaction fees of between 2-3% when used abroad, in addition to a fixed rate charge when withdrawing from a cash machine. This makes them the most expensive option. However, new app-based banks like Monzo, Starling and Chase offer fee-free spending abroad up to a monthly limit, making them a good option for shorter trips.
What Type of Travel Insurance Should I Get?
Choosing the right travel insurance depends on where you are going, what activities you expect to do, and your current physical health. These factors can increase the cost of travel insurance significantly, but getting the wrong travel insurance could have serious financial consequences should anything go wrong.
Activity-Specific Travel Insurance
Standard travel insurance covers your normal beach holidays and city breaks, but anything more adventurous, like extreme sports, requires additional cover or a specialist policy. As a standard, most insurers will exclude any activities they classify as potentially hazardous, including:
Winter sports like skiing and snowboarding almost always require extra coverage, as in addition to potential injury, holidays can be disrupted by piste closures, avalanche delays, and damaged equipment.
Water sports are another activity that usually requires added cover, and can include white water rafting, scuba diving, windsurfing, and more.
Adventure activities can include bungee jumping, zip-lining, paragliding, and base jumping.
High-altitude (over 3,000 metres) hiking/ trekking is another activity that might require specific cover due to the risk of injury in hard-to-reach locations.
It’s important to always read the policy exclusions when purchasing travel insurance to see if your intended activities are covered.
Travel Insurance for Specific Illnesses and Medical Conditions
People with pre-existing medical conditions need to legally declare them when taking out travel insurance, as failure to do so can invalidate your policy. In which case, you would be responsible for any medical bills, which could be substantial.
Medical conditions that need to be declared include:
Cardiovascular conditions like heart disease, high blood pressure, and previous heart attacks or strokes.
Respiratory conditions like cystic fibrosis, COPD, and asthma
Type 1 and 2 diabetes
Cancer, even if you are in remission
Have had recent surgery with ongoing treatment
Mental health conditions like chronic anxiety or depression
If you have any of the above conditions or a serious illness, then you can expect to pay a higher premium, so it may be better to use a comparison tool to find the best travel insurance deal for you.
Country-Specific Travel Insurance
Your destination is a key factor in terms of the cost of your travel insurance. Although most insurers price their policies based on geographical zones, some specific countries carry a much higher premium than others.
Europe: When travelling in Europe, a UK Global Health Insurance Card (GHIC) entitles you to state-provided healthcare at the same cost as a resident, but isn’t a substitute for travel insurance. A GHIC doesn’t cover things like repatriation and private treatment, and of course, non-medical issues such as cancellation or lost luggage.
USA and Canada: The medical costs in North America are extremely high, among the highest in the world, with a single night in a hospital sometimes costing thousands of Dollars. This is why comprehensive travel insurance is essential when travelling in the US and Canada, with a medical cover limit of at least £2 million.
Australia and New Zealand: The UK has a reciprocal healthcare agreement with Australia and New Zealand, which provides access to essential medical treatment through Medicare. However, as with the GHIC in Europe, this does not replace a full travel insurance policy.
High Risk and FCO-advised Countries - The Foreign, Commonwealth & Development Office (FCDO) maintains an up-to-date list of countries where essential travel is advised. In these countries, most insurance companies will not provide cover. In this situation, you will need to find specialist travel insurers, but this type of cover will likely come at a premium.
Multi-Destination and Long Haul – If you are travelling to multiple countries and regions, then you will need a travel insurance policy that covers every destination. If you travel frequently or are travelling long-term, then an annual multi-trip policy might be the most cost-effective solution. There are also specialist backpacker/ ‘Round The World’ policies that may be more suitable for some travellers.
Backpackers Insurance
For backpackers. South East Asia remains one of the most popular destinations for UK travellers, including Thailand, Vietnam, Cambodia, Indonesia, and the Philippines. As the quality of healthcare can vary significantly across this region, especially in rural areas, you should include medical evacuation cover in your policy. Other key factors to consider include:
Motorbike/ Moped Cover – For locals, riding a moped or motorbike is a way of life, and many tourists hire this form of transport due to its convenience. However, accidents in countries like Thailand and Vietnam are commonplace. Most travel insurance policies exclude motorbike accidents unless you hold a valid UK motorbike license and wear a helmet.
Tropical Illness – Although travel insurance covers medical costs, travel insurance may be voided if you do not get the correct vaccinations and antimalarial medication before travelling.
Adventure Activities – As previously mentioned, you will need to include an add-on for activities like water sports, rock climbing, and high altitude trekking.
Political Instability – Some countries (such as Myanmar) are considered high-risk countries, politically, and some mainstream insurers may not provide cover if you plan on travelling there.
Do You Need a VPN for Travelling?
A Virtual Private Network (VPN) encrypts your internet connection and routes it through a server in a location of your choice, hiding your IP address and protecting your data. Some public Wi-Fi networks are unsecured and are often targeted by cybercriminals to steal sensitive data like login details and banking credentials. Using a VPN offers an additional level of security to keep fraudsters at bay.
Of course, you don’t need a VPN in most countries, but they are a sensible precaution. However, in countries like China, with strict internet restrictions in place, a VPN is somewhat of a necessity. Furthermore, they are very affordable, with leading options costing as little as £3-£4 a month for standard packages.
Key reasons to use a VPN while travelling
Access content like BBC iPlayer and ITVX via a UK-based server.
Ensure you can access banking and financial apps which often have location-specific restrictions.
Access Google and Meta services in countries like China that have a high level of censorship.
Although a free VPN is often fine for light web browsing, a paid service from a reputable VPN provider ensures fast speeds and no data caps. Furthermore, some free providers have been known to record data, which could then be sold on. Because of this, ensure you choose a VPN with a ‘no logs’ policy.
What Are The Benefits of a Travel SIM?
In non-European countries, using your UK SIM card can incur very high charges, especially when using your internet data. This is why dedicated travel SIM cards have seen a surge in popularity, keeping costs low while travelling internationally. Many travel SIM providers offer a flat-rate data package that is applicable in a large number of countries, allowing you to browse and access apps without the fear of a large bill.
To use a travel SIM, you’ll need to ensure that your phone is ‘unlocked’, meaning it is not tied to just a single network. If it is, you can contact your provider, who can unlock it at no extra charge. Also, when comparing travel SIMs, avoid data-only plans if you want to make phone calls and send SMS messages while travelling.
Should I get a Travel SIM or eSIM?
eSIMs are completely digital and not compatible with every phone, making a travel SIM the only choice in some cases, especially if you own an older mobile phone. Some countries also have limited eSIM coverage, making them a poor choice. With a physical travel SIM, the only drawback is having to keep your normal SIM card safe and swapping them around if your phone does not have two SIM slots.
FAQs:
Can my travel insurance be voided if I don't get the right vaccinations?
Although not having a recommended vaccination won’t automatically void your travel insurance, a claim could be rejected if you fail to get an officially recommended jab and fall ill with that specific illness. This is classed as a foreseeable and preventable risk. This often applies to countries where diseases such as yellow fever, typhoid, or hepatitis A are common.
Should I tell my bank before I travel?
It’s recommended to notify your bank or card issuer before travelling to avoid being flagged for unusual activity, which may automatically lock your account to prevent fraud. This can often be done very quickly via your banking app.
What should I do if my card is lost or stolen abroad?
If your card is lost or stolen when travelling, you need to freeze your card on the app and contact your bank or card issuer immediately. It’s always a good idea to have a backup card while travelling to ensure you always have access to funds.
Is it better to get an annual travel insurance policy?
If you travel more than twice a year, then an annual multi-trip policy can offer better value instead of taking out a single-trip policy each time. An annual policy will cover an unlimited number of trips over 12 months for a maximum of 45 days for each trip.
Glossary
Dynamic Currency Conversion (DCC) – An option at payment terminals to pay in your home currency rather than the local one, typically offering a worse exchange rate.
GHIC (Global Health Insurance Card) – A UK card entitling holders to state healthcare in Europe at local resident rates; not a substitute for travel insurance.
eSIM – A digital SIM allowing mobile plans to be activated without a physical SIM card.
VPN (Virtual Private Network) – Software that encrypts your internet connection and masks your location, protecting data and bypassing regional content restrictions.
FCDO – The UK's Foreign, Commonwealth & Development Office, which publishes travel advisories for high-risk countries.
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Page Last Reviewed: 08/07/2026