Flight cancellations, travel delays or even news that airline passengers have been left stranded after their airline went bust is now a common experience for many travellers and because of the frustration and uncertainty that comes with it, travel insurance has become even more important for Brits setting off on a holiday abroad.
Studies show that Brits are still keen on taking their holiday despite the ongoing credit crunch, however, a growing number of travellers are now opting for cheap holidays with many choosing to travel to the continent by ferry, according to industry sources.
The increase in ferry journeys can be tied to the rising cost of fuel prices which has meant that airline travel is no longer affordable for many Brits although some industry sources say that the Channel Tunnel fire incident could be another reason why ferries are now popular with British travellers.
Cheaper holidays to beat crunch
Short European breaks are also gaining popularity among holiday makers who are not put off by the current economic climate although statistics show that a significant number of Brits are cutting down on their holiday expenditure. Reports further suggest that many consumers are choosing to downgrade their plan instead of cancelling the holiday all together.
But experts are concerned that travellers worst hit by the crunch and who are keen on cutting down costs could end up taking holidays abroad without any travel insurance. Endsleigh Insurance recently warned that travellers may not be protected from any mishaps if they have no adequate cover and the costs incurred by any such incident could be high.
With the recent collapse of budget Airline Companies such as Zoom, the travel insurance market has been saturated with offers of cheap or even tailored travel insurance.
Tailored holidays could be a hit
An estimated 10 million British holiday makers who are set to travel abroad in the coming months could benefit from taking out a specialist travel insurance, according to a website kayak.co.uk which also launched a fuel cost calculator. The fuel calculator is said to offer a cost effective method of determining whether to save money or the environment by picking a suitable car class for your journey.
But going for cheap travel insurance could leave many Brits underinsured and market sources are worried that backpackers increasingly choose to ditch their travel insurance. The Foreign and Commonwealth Office have warned that travellers could face hefty bills with treatment for a leg injury in America could attract £24,000 and £4000-£5000 if hospitalised in Greece.
A study by gapyear.com, found that 16{363bd2a98d15c88227082edbeda0d5f103110265c93869472e5f1256b705561e} of backpackers were happy to take their money around as they travel while a quarter of them dropped their travel insurance before taking out their break this summer. But experts are insisting that British holiday makers opting for cheaper travel insurance should check that all their holiday activities will be covered and travellers are warned that some extreme sports may not included in their policy.
At the same time anyone planning to go on holiday should consider taking a standalone travel insurance policy because insurance sold with a holiday can cost up to three times as much.
