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Travel insurance getting left behind by 25% of credit crunched Brits

12 February 2009 / by Rachael Stiles
Nearly a quarter of British people travelling abroad are sacrificing their travel insurance in a bid to keep the costs of their trip down, according to research from American Express.

Many Brits are looking to escape the credit crunch blues by searching for last minute holiday deals at the moment, but more and more are putting themselves at risk by deciding not to take travel insurance with them when they go abroad, the study by American Express travel insurance found.

The most common reasons for claiming on travel insurance policies include medical costs, which can run into millions of pounds, cancellation, and lost or damaged luggage.

"Having a good quality insurance policy will allow Brits to enjoy their holiday abroad and within the UK with the assurance that they are protected should any of these things happen to them." said Chris Rolland, head of American Express Insurance Services.

And travel insurance is not the only thing facing the chopping block as Brits attempt to reduce their outgoings – long term plans are being put on hold by the 44 per cent of people that are intending to stop making regular payments into their savings accounts.

Another 21 per cent said that they will be stopping their investment into Child Trust Funds, affecting their children's futures as well.

And pet-loving Brits are putting their pet's health before their partner's, American Express found, with more than a quarter expected to cancel their family health insurance, compared to just 17 per cent of pet owners who said that they will be cancelling the pet insurance.

American Express' figures also show that 30 per cent of Brits intend to do away with their payment protection insurance at a time when unemployment is rising.

Other corners that Brits will be cutting include pension contributions (14 per cent), credit card payments (12 per cent), home insurance (three per cent) and car insurance (two per cent).

"Life may be getting more expensive, but it is worrying that 48 per cent of Brits are planning to cut back on the policies that are designed to protect them during hard times." said Mr Roland. "This may well be a false economy as people could end up paying out much more than they bargained for if something should happen."

© Fair Investment Company Ltd