Money worries lead to holiday insurance risks

Money worries lead to holiday insurance risks

Economic factors could lead at least a fifth of people to forgo an overseas holiday this year while of those who do, half say they will economise, according to new research from AA Travel Insurance.

A fifth (21%) have already decided not to holiday abroad, 40% of them saying that they can’t afford to go this year or that the economy has discouraged them from booking an overseas trip. Another third (31%) have yet to decide.

And of those who are planning a holiday, 47% say that the economic situation has affected their travel plans, by far most of them (82%) saying they are carefully thinking about their budget by cutting back on how much they spend. 

Mark Huggins, director of AA Financial Services, points out that foreign holidays are often the first major casualty when families struggle to make their £ go further.

“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 a holiday are counting their pennies.

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“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.”

The AA’s findings suggest that over a fifth (22%) don’t buy travel insurance on grounds of cost while a further third (33%) feel that it isn’t really necessary.  Some (11%), believe their EHIC* is a travel insurance substitute.  Others (9%) believed that because they are healthy, insurance just isn’t necessary.

Mr Huggins points out that a single trip policy for a family of four travelling for 14 days in Europe, could cost less than 64p per person per day*: – a tiny proportion of the cost of even the cheapest budget holiday.

“There still seems to be a lot of misconceptions about travel insurance,” Mr Huggins says.

“It is vital. An accident or illness that lands you in a European hospital could easily cost you £2,000 over and above what European reciprocal arrangements may include using your EHIC card; and over £10,000 if you are holidaying in the USA.

“Figures like that clearly show that a few pence per day spent on decent travel insurance is money very well spent.

“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.”