Having the right travel insurance policy in place is a bit of a no brainer. You know what needs to be covered and how much excess you can afford should something go wrong.
A recent study* shows nearly two out of five (38%) British tourists take more than £500 in 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.
The trend in the UK is to use either credit/debit cards or contactless payments from a mobile device, but there are countries which are still using payment with a signature or prefer cash as a payment.
There are ways which you can reduce the risk of losing cash, such as uploading currency to a pre-paid travel card, using credit or debit cards or booking a holiday which is all-inclusive so that you don’t need to carry as much money with you.
Payingtoomuch.com’s Regional Travel Manager Chris Pannell said: “There are obviously risks when taking cash abroad, especially when banknote denominations can vary greatly, resulting in a very full wallet. It is understandable that people want to carry plenty of cash for tips in restaurants or for getting a better rate of exchange if pre-purchasing currency, but if your wallet or purse is stolen or lost, your holiday could be ruined.”
If you are looking at taking large sums of cash with you abroad, make sure your insurance policy can cover you should you have it stolen. You should also consider what excess you will have to pay if you need to make a claim for lost or stolen cash. In some cases, the excess could be higher than the claim itself.
If you would like to speak to one of our travel insurance team, call us on 01243 784000 and discuss your options.
Travel fact: You must declare cash of €10,000 or more (or the equivalent in another currency) if you take it between the UK and any non-EU country. You could face a penalty of up to £5,000 or your declared cash can be seized by customs officers if they have reasonable grounds to suspect a crime or you don’t declare your cash.
*Study compiled by Consumer Intelligence
