As the cost-of-living crisis continues to impact households across the UK, a recent survey by AllClear Travel Insurance has revealed that more than three in four adults (78%) are making financial cutbacks to ensure their holidays abroad remain affordable. The survey, which polled a nationally representative sample of 2,106 adults, highlights the various ways in which holidaymakers are trimming expenses, from packing fewer items to opting for budget airlines.
The most common areas where travellers plan to cut costs include packing only the essentials (39%), choosing cheaper airlines (39%), and relying on public transport at their destination instead of taxis (32%). Additionally, 30% of respondents said they would opt for self-catering accommodations over half-board options, while 23% are looking for more affordable resorts to keep their holiday expenses in check.
However, this trend of cost-cutting extends beyond flights and accommodation, with many holidaymakers also looking to save on travel insurance. Nearly three in ten people surveyed indicated that they plan to reduce spending on their travel insurance policy this summer. A concerning 20% of respondents said they would opt for the cheapest possible insurance cover, and almost one in ten (9%) admitted they would travel abroad without any travel insurance at all.
This focus on minimising travel cover costs is particularly worrying among vulnerable holidaymakers, including those with pre-existing medical conditions. According to AllClear’s data, one in four UK adults (25%) travelling abroad this year have a pre-existing medical condition. Of these, 35% are planning to cut corners to secure a cheaper travel insurance policy. Some holidaymakers are even willing to withhold vital information to achieve a lower premium: 43% said they would understate the value of their belongings, while 31% would not declare all details of their medical conditions—actions that could potentially invalidate any claims they might need to make.
Garry Nelson, Head of Corporate Affairs at AllClear Travel Insurance, cautioned against the dangers of undervaluing travel insurance in the pursuit of savings. “We can see why people are adopting savvy budgeting strategies to save money on the cost of a holiday. Saving money on flights and connections, going self-catering, or looking for a cheaper resort—all these things make sense. However, when it comes to insurance cover, people need to be clear on which product best meets their needs.”
Nelson emphasised the importance of getting the right cover, particularly for older travellers and those with medical conditions. “Younger travellers on a simple break may find a budget policy to be sufficient, but for older people—and especially those with medical conditions—the priority must be securing appropriate medical cover,” he added.
As Britons continue to seek ways to make their holidays more affordable, experts urge caution in the area of travel insurance, warning that cutting corners could lead to costly consequences.