Economic factors could result in more than one in five people not going on an overseas holiday this year and out of those who intend to go, half say they will economise, according to new research from AA Travel Insurance .
Of those who are planning a holiday, 47 per cent claim that the economic situation has affected their travel plans, with most saying they are thinking carefully about their budget by cutting back on how much they spend.
The survey revealed that a fifth of travellers don’t buy travel insurance on grounds of cost, while a further third think that it is not really necessary. One in ten believe their EHIC is a travel insurance substitute. Also, one in ten are confident that because they are healthy, insurance just is not necessary.
Mark Huggins of AA Financial Services said: “I am concerned that those cutting corners say they will not take out travel insurance which is an entirely false economy. An accident or illness that lands you in a European hospital could easily cost you £2000 over and above what European reciprocal arrangements may include using your EHIC card and over £10,000 if you are holidaying in the USA.”