Travellers told not to scrimp on insurance - Travel insurance - News - Moneyfacts

News News brings you the latest financial & economic news & reviews of the best products in the UK by our team of money experts.

Travellers told not to scrimp on insurance

Travellers told not to scrimp on insurance

Category: Travel insurance

Updated: 26/11/2012
First Published: 12/01/2011

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Hard-up holidaymakers have been warned of the potential financial fallout of not taking out travel insurance.

With purse strings too tight to mention for many, a survey by AA Travel Insurance has revealed that around a fifth of people will not be able to afford an overseas holiday this year.

However, of those that can muster the necessary cash to jet away, half claim they will have to economise, with travel insurance amongst the holiday essentials that might be forgone.

More than a fifth (22%) of people said they do not buy travel insurance on the grounds of cost, while a further third (33%) feel that it isn't really necessary.

Around one in ten (11%) mistakenly believe their EHIC is a travel insurance substitute, while a staggering 9% believe that because they are healthy, insurance just isn't necessary.

"Our research suggests that a large number of people who normally take an overseas holiday are having second thoughts, while those who are continuing with their holiday plans are counting their pennies," said Mark Huggins, director of AA Financial Services.

"I'm particularly concerned that a quarter (26%) of those cutting corners say they won't take out travel insurance, which is an entirely false economy."

Adding that there still seems to be a lot of misconceptions about travel insurance, Mr Huggins said an accident or illness that ends up in a stay in a European hospital could easily cost £2,000 over and above what European reciprocal arrangements may include using an EHIC card.

This rises to over £10,000 for mishaps while on holiday in the USA.

"Figures like that clearly show that a few pence per day spent on decent travel insurance is money very well spent," Mark Huggins concludes.

"You might be exceptionally healthy - but that won't stop you from needing treatment if, for example, you have a bad bout of food poisoning; get sunburned; stung by a jellyfish; have a fall or be involved in a car collision.

"That's when you really would regret not being covered."

Compare travel insurance providers

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Travel insurance cost is prioritised

It’s that time of year again: holidaymakers are already planning their summer breaks, yet while this organised approach should be celebrated, it’s equally as important to make sure you have the right kind of travel cover in place.

Moneyfacts Travel Insurance Star Ratings announced

Finding the right travel insurance policy is a vital part of holiday planning, yet it can be easier said than done. With so many to choose from it can be tricky to know where to start; that’s where we come in.

Beat the January blues – book a holiday!

Are you feeling the January blues? You’re not alone. The festive season has come to an end and the New Year celebrations are already a dim and distant memory, so how can you beat the blues? Book a holiday!