To save money, many Brits refuse to pay for travel insurance, but it can end up costing them in the end, according to a new report.

While Brits are spending an average of more than £1000 for a holiday, some struggle to justify the extra spend on travel insurance. Holidaymakers who choose to purchase the insurance are spending an average cost of £92, according to new data from LV= General Insurance, with those surveyed stating that it has saved them on average £590.

Data shows that one in three holidaymakers (31 per cent) will skip travel insurance because they feel it’s unnecessary or too expensive. While the figures show that of the 2,000 surveyed, one in three travellers (33 per cent) suffered medical emergencies and needed help overseas, with bills costing an average of £2,207.

Cancelled or missed flights also cause havoc, forcing travellers to rack up eye-watering costs of £1,485 on average.

A quarter of those polled (26 percent) had to suffer the consequences of lost or stolen belongings, with replacement costs averaging £352.

To avoid risking issues such as flight cancellations, lost luggage, or unexpected medical emergencies, 74 per cent of travellers surveyed say travel insurance is essential on every trip abroad.

Since the start of 2023, LV= has paid £14.5 million for 14,600 travel insurance claims. The largest single claim since 2020 was nearly £110,000 for a traveller involved in a road traffic accident in Canada.

Chelsea Dickenson, travel expert, has seen her fair share of holiday disasters and urges everybody to keep themselves covered.

She said: “I can’t stress enough how important it is to get your travel insurance sorted as soon as you have your holidays booked. I’m messaged by people on a daily basis who find themselves in tricky situations, whether that’s cancelled flights or the loss of luggage, the answer is always check your travel insurance policy. The knowledge that you’ve got a good policy sorted is the best way to start any holiday.”

For those who do buy travel insurance, the top reasons are:

1.  Covering medical emergencies (88%)
2. Protecting against flight or trip cancellations (66%)
3. Guarding against lost items (59%)
4. Protecting against theft of personal belongings (54%)
5. To cover in case of needing to end their trip early (47%)

Caroline Johnson, claims director at LV=, said: “Everyone looks forward to their holiday but they can turn into a financial nightmare if you travel without insurance. The cost of falling ill overseas or receiving medical treatment following an accident can be enormous, while losing luggage, suffering delays, and having items stolen can lead to large bills and huge stress. Travel insurance is designed to give you peace of mind so you can focus on enjoying your holiday and make sure you’re properly covered should the worst happen.”