During the economic downturn, many consumers have faced the unavoidable question of what purchases should be kept, while others are sacrificed.
For avid travellers, however, one of those sacrifices has been insurance. They’d rather keep the luxury of travelling, but go without coverage.
In a report released by Sainsbury’s Finance, over a third of Britons - that’s 11.3m travellers - spent their summer vacations uninsured.
Cutting back on travel insurance may seem like a reasonable sacrifice at a time when consumers across the UK have cut down on household spending. However, the report appears to indicate that Britons still want to vacation at nice destinations, even if it means going uninsured.
But travelling without coverage comes with a hefty price tag. Sainsbury’s Finance says uninsured travellers have faced more than £57m in costs that could have been covered by their insurer.
”Buying travel insurance should be considered a holiday essential. It is very worrying that many people feel that they do not need travel insurance as no one can guarantee a ‘hiccup-free’ holiday,” said Sam Marrs, travel insurance manager at Sainsbury’s Finance.
Despite the obvious incentives, those under the age of 34 were most likely to rule out insurance coverage altogether.
According to the research, an estimated 43 per cent (1.9m) of travellers between the ages of 25 and 34 did not intend to buy coverage. Although 18 per cent of those surveyed think it’s unnecessary, another 17 per cent said they simply couldn’t afford coverage.
But travel coverage isn’t as expensive as some might think. In reality, it can cost as little as £5.82 for single trip to Europe, £10.05 for the US or £24.26 for an annual worldwide policy, according to Moneysupermarket.com
“People often perceive travel insurance as an expensive accessory to their holiday and this may be the reason why so many holidaymakers choose to go away without it,” said Maxine Baker, travel insurance manager at Moneysupermarket.com.
But indifference towards insurance coverage may be attributed to more than just tightening budgets.
Peter Gerrard, head of insurance at Moneyextra.com, says there’s an element of complacency when it comes to travel insurance. “A lot of travellers, especially those who go to Europe, have an ‘it-won’t-happen-to-me’ attitude, so they don’t want to pay the extra money for insurance.”
He said travellers are more likely to buy insurance if they know someone who has experienced accidents abroad, or if they’ve faced it personally.
As for home and car insurance, Mr Gerrard has seen little decline because by law clients are obliged to take out coverage.
The same can not be said for life and travel insurance, which is generally bought “for some peace of mind. During difficult economic times, people tend to cut down on what is considered optional.”
But the case for buying insurance is more pronounced during the winter season, when accidents are more likely to occur.
“We would obviously hope that all people travelling abroad this winter would ensure they take out good quality travel insurance. Unfortunately our research indicates that, given the numbers of people who appear to have cut back on insurance cover for summer holidays, many will do the same for trips abroad this winter. The cost of doing so in the case of skiing or snowboarding holidays can be very high indeed,” Mr Marrs said.
Ms Baker said travellers should also consider coverage in the event of a possible swine flu outbreak.
“If you contract swine flu before heading off on your trip, providing you have already purchased your insurance and your doctor has deemed you medically unfit to travel, your insurance should cover you.”
