Money worries on holiday

A quarter won't bother with travel insurance

13 January 2011

New research from AA Travel Insurance suggests that many peoples' holiday plans are being influenced by money concerns, while just over a quarter won't take out travel insurance.

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.

Results

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.

Comment

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

"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."

Travel insurance

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.

There still seems to be a lot of misconceptions about travel insurance even though 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.

Travel insurance 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.

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 are involved in a car collision.

Factfile

Research by One Poll, who interviewed 3,000 people between 19 and 23 December 2010 for AA Travel Insurance

*Cost of an AA Travel Insurance policy for a family of four for two weeks in Europe: £35.30 including IPT at 20%. Two children aged 17 or under insured free. Includes online discount. For AA members, excess waiver is free. Cover for financial failure of airline, hotel company or other providers where no other compensation is available included.

**EHIC: European Health Insurance Card is available free from the NHS online or by post using a form that can be obtained from a post office and all European travellers should carry one. The card entitles the holder to basic health care provided by the European country you are visiting, for which a charge may be made. It does not cover private health care services or the cost of being brought back to the UK. It is not a substitute for travel insurance.