Holidaymakers may not be covered if they lose their spending money when travelling abroad this Easter, according to new research.
Consumer Intelligence found that some 38% of holidaymakers take more than £500 in cash when they go away, but most travel insurance policies only cover up to £250 if money is lost or stolen.
Travellers could find themselves further out of pocket if they forget to check the small print, as many policies require you to pay an excess of up to £100 to claim for cash.
The specialist market research agency warns that those who prefer to take cash rather than a pre-paid currency card may not realise the risks.
More than two million people are expected to travel abroad this Easter.
Andy Buller, travel money expert at Consumer Intelligence, says: “Most travellers carry far more cash than their insurer would ever pay out on if they were to lose it or have it stolen. There are far safer ways to take money abroad.”
It analysed some of the top travel insurance policies to show how much holidaymakers could stand to lose.
The Post Office Standard policy covers cash up to £250 and has an excess of £100. Direct Line’s Multi-Trip policy covers cash up to £500 with an excess of £50. Meanwhile, Insure & Go Silver Multi-Trip covers cash up to £200 with an excess of £60, but will only cover you up to £100 for money lost or stolen at the beach.
Holidaymakers could consider taking some of their spending money as cash and having some on a pre-paid currency card or dedicated overseas credit card. Pre-paid cards, which can be used across a number of currencies, let you lock in your exchange rate in advance so you get exactly what you are paying.
Mr Buller adds: “Customers who lose pre-paid cards will generally not lose money stored on them as long as they report the loss to their provider, though they may have to pay for a replacement card.