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Cash-strapped holidaymakers who opt to save money by spending their vacations in the UK instead of abroad are being urged not to overlook travel cover.
Although the number of Brits planning to spend their holidays in the UK this year is booming, travel insurance providers say there has been no corresponding increase in the number of policies taken out for UK travel, prompting concerns that travellers are forgoing insurance simply because they do not think it is relevant if they are staying in the country.
The insurance price comparison website Confused.com said only 2% of all travel quotes sought via its portal were for customers looking for UK cover.
"The number of UK insurance policies sold is dwarfed by that of European and worldwide policies, and in our experience fewer people shop around for UK cover," said Steve Williams, head of travel insurance at Confused. "But travel insurance should be seen as a vital part of any holiday you are planning, whether it be in the UK or further afield."
Although Brits do not need travel insurance to cover them for medical emergencies in the UK, it is recommended in case of cancellations or curtailment, which could leave holidaymakers with lost deposits and reservation fees, or hefty cancellation charges.
However, Williams said holidaymakers should be careful to avoid doubling up on insurance they already have – items taken on holiday may already be covered by home insurance policies, while people with annual global or European travel cover will automatically be covered for trips in the UK.
Direct Travel Insurance said the most common reasons for cancelling holidays were redundancy, family illness or jury service. Last year, more than 150 claims relating to holidays taken in the UK were made by its policyholders, with an average of £1,074 being claimed for cancellations.
Hoburne Holiday Parks, which has seven holiday parks in the UK, has seen its bookings rise by more than a third compared with this time last year. The company offers its customers an optional holiday cancellation scheme for its family lodges, which can cost more than £1,000 during peak times. Under the scheme, the company will waive its contractual rights if customers are forced to cancel a holiday.
Its chairman, Rosie Burry, said: "A holiday booking is a contract and, like any other contract, it is sensible to protect oneself in case things go wrong. Our cancellation scheme doesn't attempt to replicate all the features of a travel insurance policy, and we do make this absolutely clear in the brochure. We also make it clear that any customer who wants insurance cover should approach a broker authorised by the FSA."
Research released by insurer LV last month revealed more than 5 million Brits plan to cancel or reduce one or more of their insurance policies over the next year, with almost a quarter saying they would cancel or scale down their travel insurance policy to save money.
John O'Roarke, managing director of LV, said: "Travel insurance is extremely important and compared to the cost of an average holiday, it is a very small expense that could save you tens of thousands and a lot of heartache in the long run."
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