Why budget travel insurance might be a false economy

With the summer holidays coming up, travel insurance should certainly be on your mind. Many people want a good deal and will more often than not choose to go with a budget provider in an attempt to reduce the costs of their holiday. However you may find yourself out on a limb when it comes to making a claim.

The majority of budget insurance providers can only afford to keep the price of their insurance low because they offer a tiny amount for a cover limit, with high excesses for those making a claim.

Research performed by Which? found that the majority of budget insurance companies only offered an average of £200 for lost or stolen cash, and £300 for lost valuables. That’s less than the cost of a tablet or phone these days!


According to Which? the average total value of the contents of a suitcase adds up to £1550, meaning that when shopping for travel insurance you’ll need to bear in mind that you’ll need a limit that is above that amount. During the course of their research they discovered that most budget insurance only has a limit of £100! Which? also found that limits of £100 were also applied to valuables, which usually incorporates items like jewellery, watches and musical instruments.

Small Print

It’s vital you always read the small print when buying insurance. The research found that several budget insurance companies required the customer to cover an excess of £250 when the limit was £750! That means you have to pay a third of the cost upfront!
When looking for insurance, bear in mind.

  • Don’t just accept insurance that comes packaged with the holiday. You’ll probably find that it’s either overpriced or doesn’t give you adequate cover.
  • Declare any and all medical conditions. Not informing an insurance broker of any conditions might invalidate your insurance, should you fall ill on holiday.
  • Use your EICH card. We’re still in the EU for another 2 years, so you might as well get good usage out of it. But remember this only covers medical bills, not lost valuables.
Are you looking for the right travel insurance this summer? SG Chaseside Insurance Solutions can provide you with the right cover, no matter the activity!


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