A study shows nearly two out of five (38 per cent) take more than £500 of cash on holiday – but analysis of leading travel insurance policies found most only provide cover for lost or stolen cash to a maximum of £250 and have excesses of up to £100.
Provider – Post Office
Policy – Standard
Cash Limit – £250
Excess – £100
Provider – Marks & Spencer
Policy – Multi-trip
Cash Limit – £250
Excess – £50 per person
Provider – Direct Line
Policy – Multi-trip
Cash Limit – £500 (£250 per insured adult)
Excess – £50
Provider – Tesco Bank
Policy – Standard Multi-trip
Cash Limit – £200
Excess – £60
Provider – Insure & Go
Policy – Silver Multi-trip
Cash Limit – £200 (beach limit £100)
Excess – £60
More than two million people are expected to be heading overseas for the Easter holidays and banking and insurance research experts Consumer Intelligence believe they should look at alternatives such as pre-paid cards which will cost holidaymakers less if they are lost or stolen.
Andy Buller, Consumer Intelligence travel money expert said: “I’m constantly surprised by the amount of cash holidaymakers still choose to take out of the country given the decline in the use of cash at home.
“Most travellers carry far more cash than their insurers would ever pay out on, if they were to lose it or have it stolen and there are safer ways to take money abroad.
“Travel money providers – especially those who also offer travel insurance, could use this as an opportunity to create loyalty by advising customers on other ways to take money abroad, or by offering additions to travel policies that would cover the additional cash.”
Customers who lose pre-paid cards will generally not lose money stored on them as long as they report the loss to providers – they may have to pay for a replacement card however.
