Travel insurance sacrificed to cut holiday costs

Nearly one in four Brits are skimping on travel insurance to keep down the cost of their holiday, research from American Express has discovered.

Many people in the UK are looking to escape the gloom of the recession with cheap last minute holiday deals, but an increasing number are putting themselves at risk by choosing to travel without insurance.

Travel insurance is not the only non-essential that Brits are cutting back on.

Almost half (44%) of those surveyed said they intend to stop making regular payments into a family savings plan, whilst one in five (21%) are halting investments into a child trust fund.

Payment protection insurance (PPI) and family health insurance are also facing the axe despite increasing unemployment, with 30% and 27% respectively of those surveyed choosing to cut out these payments.

Chris Rolland, Head of American Express Insurance Services said: “Life may be getting more expensive, but it is worrying that 48% of Brits are planning to cut back on the policies that are designed to protect them during hard times.

“This may well be a false economy as people could end up paying out much more than they bargained for if something should happen.”

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