Holidaymakers risk wasting £200 on travel insurance due to common mistake

UK holidaymakers could be wasting anywhere £50-£200+ on travel insurance by making some common mistakes, a travel money expert has warned.

Nearly nine in 10 (86%) travellers think they got a good deal on their insurance. Yet more than a quarter (26%) never compare prices before buying. Of those who do shop around for policies, half (50%) find significant price differences between providers, while more than a third (37%) secured a cheaper policy than expected.

The research by travel insurance comparison site PayingTooMuch found 54% of travellers have no idea how much they could be overpaying, while some estimate they could save £100-£200+ by shopping around.

“Feeling confident about a purchase is not the same as knowing you’ve found the best policy for what you need,” says Hannah Mayfield, money expert working with PayingTooMuch.

“Travel insurance can be difficult to compare, so it’s understandable that people rely on familiar brands or assume they’re getting a good deal when they see a big discount. However, our findings show that those who take the time to compare often find significant differences in price and cover.”

“Two policies can appear very similar at first glance but offer varying levels of protection once you investigate cover limits, exclusions and eligibility criteria. Providers often have several tiers within the same product, so the headline price doesn’t always tell you much on its own. Add-ons for things like cruises, winter sports or gadgets can add another layer, as what’s a great deal for one type of holiday might be poor value for another. That’s why taking the time to compare remains an important step before buying cover, just as it would be before settling on a car insurance quote.”

Medical cover is where the confidence gap really shows

Those who declared more than one medical condition were significantly more likely to say some providers wouldn’t cover them at all (27%), nearly three times the national average of 10%. They were also more likely to find policy comparison harder than expected, at 22 per cent versus 15 per cent on average.

The challenge is especially acute for this group, who may face fewer suitable options, higher prices and a greater risk of buying cover that doesn’t match their circumstances.

A postcode lottery in financial confidence

Londoners were among the most financially aware, being twice as likely to think they could have saved £50-£99 by shopping around (10% versus the 4% national average) and notably less likely to say they simply don’t know (41% versus 54% nationally).

How to stop paying more with two simple checks

Hannah adds: “Taking time to compare policies side by side can make a lasting difference. We should all look beyond the headline premium and check whether the policy reflects the destination, trip length, activities, medical history and the level of protection we would expect to need if something unexpected happens abroad.”

1. Check at least one other provider before accepting an auto-renewal. Loyalty is the single biggest reason people skip comparing, but that doesn’t mean the policy remains competitive.

2. Compare options on more than price alone. Half of people who shopped around found cover varied significantly by provider, not just cost. Check what is included and excluded in your policy, so you’re not caught out on holiday.

Hannah recommends checking the fine print for:

• Medical-condition cover and limits

• Cancellation and delay limits

• Baggage cover

• Excess levels

• Exclusions and planned activities

• Destination restrictions