There is a great deal of resistance when it comes to travel insurance, especially from the under 40s, who perceive the risks as being quite low. Maybe the answer is to campaign to make it complusory, although many younger travellers already know that most claims are rejected when drink or drugs are involved. It’s a difficult sell for sure. In fact, a new study has found that the cost of buying travel insurance is equal to just 1% of holidaymakers’ average expenditure when on an overseas break. Here’s the word;
Based on the figures, UK travellers spend an average of £1,484 during a two week holiday, while the average cost of a single trip travel insurance policy is only £20. This means insurance is equal to just 1% of their spending abroad, highlighting that the cost of a policy is actually relatively low, despite its perception among some as being too expensive.
The research, which comes from Go.Compare, was calculated using a combination of the site’s internal sales figures and 2023 Travelpac data on UK holidaymakers’ expenditure. It compiled the total amount of money and nights spent on holiday during the year to calculate the average spend per trip, then compared this with the average cost of travel insurance.
Despite its proportionately low price, uninsured travellers named cost as the main reason they didn’t get cover in a previous study by the comparison site. Around a quarter (26%) said it was their primary deterrent, equal to 3.6 million travelling without cover due to price in the second half of 2021.
£14.3 million was lost in claims during this period by travellers who didn’t get cover because of its price, showing that uninsured holidaymakers are taking a huge gamble.
PRICING IS COMPETITIVE, MAYBE CROWDFUNDING POST-INCIDENT WORKS BETTER?
A modern solution to an accident, botched operation or other incident abroad is to crowdfund it, using social media. It certainly seems to work for many younger holidaymakers. But it isn’t the answer to every emergency of course, as GoCompare notes;
Rhys Jones, travel insurance expert at Go.Compare, said: “It’s frustrating to see that travellers are taking a risk on insurance on the basis of its price, when in actual fact it represents a miniscule percentage of our holiday spending. At an average cost of £20, getting a policy for your trip is well worthwhile, as it could save you a fortune in the long run.”
Overall, Go.Compare’s research found that UK holidaymakers spent a total of £49.8bn during their oversea breaks in 2023, with men accounting for the majority of spending. On average, UK travellers spend £106 per night while on holiday. However, the average spend for men over two weeks comes to £1,515, around £100 (£8 per night) more than the women’s average spend of £1,406.
In addition to this, it discovered that teenagers and those around retirement age, both life stages which tend to have a lower income, also tend to spend less than other travellers. At an average of only £88 per night, over 64s spend the least of any age group, equal to £1,242 over a fortnight. Under 16s spend just 28p more per night in comparison, equal to £1,246 over two weeks.
In contrast, those aged 45-54 spend the most, paying £133 per night on average – £25 more than those 65 and over. This is equal to £1,594 over two weeks, suggesting that this is the age at which we have the most spending money available for our time away.
Speaking about the statistics, Jones said: “It’s interesting to see who spends the most when they go on holiday. It can be a reflection of who is most likely to go on a spending splurge during their time away, as well as who has the most money available for their trip.
“It’s understandable that teenagers and retirees spend less during their breaks, as travellers tend to have less income around this life stage. Concerningly, the difference between men and women’s spending abroad could be a symptom of the gender pay gap, highlighting this as another area where women are unfairly impacted by the country’s imbalanced payslips.”
More details about UK holidaymakers spending, including where travellers spend the most and tips on how to save, can be found on Go.Compare’s website.
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