Brits Taking Unnecessary Risks by Traveling Without Insurance

According to Nationwide’s study, nearly half (44%) of British travelers have gone on holiday without any travel insurance. This figure is starkly higher than the one in 42 drivers who drive without car insurance. The trend of skipping travel insurance is particularly common because it is not legally required for most destinations, unlike car insurance.

The research also shows a significant age gap in insurance habits, with older travelers (55+) being twice as likely to secure travel insurance compared to younger travelers (16-24). Aviva, which provides travel insurance for Nationwide’s FlexPlus account, reports an average claim value of £900. However, serious incidents can result in claims worth tens or even hundreds of thousands of pounds. Despite these potential costs, 13% of people admit they never purchase travel insurance.

Travel insurance primarily covers medical emergencies abroad (62%), trip cancellations (40%), theft (33%), flight issues (28%), and lost luggage (26%). It is advised to secure travel insurance as soon as a trip is booked to avoid last-minute complications, yet only 27% of travelers do so, with 56% waiting until the month before departure, and 6% booking just a day before traveling.

Travelers must understand that not all policies are identical, and it is crucial to know what is covered and what might require an upgrade. Declaring any pre-existing medical conditions is essential to avoid claims being denied. Nationwide’s study reveals that nearly one in six (17%) people do not read their policy’s terms and conditions.

Marta Edwards, Head of Current Accounts at Nationwide, stresses the importance of adequate travel insurance. She advises that while most claims are minor, serious illness or accidents abroad can result in substantial costs. Edwards emphasizes that travel insurance, despite being an optional expense, is essential due to the significant risks involved.