As the UK economy continues its downward spiral, holidays that were previously thought to be sacrificed are surprising economists by experiencing good business, but travel insurance is one cost that is being cut according to Sainsbury's Travel Insurance.
The research shows that although Brits are continuing to holiday in an attempt to escape the grim UK weather, they are saving money by forgoing travel insurance
and consequently putting themselves at risk.
The figures reveal that one in four Brits claim not to be taking out any travel insurance for this year's summer holidays, as a result of the credit crunch and pressure to tighten the purse strings. In fact, 2.5 million holidaymakers argued they were unable to afford travel insurance due to the increased cost of living.
So far this year, energy bills, food, oil and petrol have all seen significant price hikes, forcing Brits to cut back on other areas such as insurance
. However, it hasn't stopped people taking holidays, as the latest results from holiday specialists Thomas Cook
show business is as good as ever.
Thomas Cook Group CEO, Manny Fontenla-Novoa, said: "Trading in the summer season is strong in all markets and early indicators show that we are currently ahead of last year for Winter 08/09 and Summer 09."
Commenting on Brits' lack of travel insurance, head of insurance at Sainsbury's Finance, Steve Johnson, said: "It's extremely concerning to see how many people are neglecting to take out insurance when going on holiday. It's a false economy to do without it and should be regarded as a holiday essential, just as important as packing your passport. Although in the current climate people are understandably looking at ways to reduce their outgoings, insurance is one thing that should not be omitted."
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