A survey conducted for Consumer Intelligence by Viewsbank revealed that British holidaymakers are putting themselves at risk by carrying more cash than their insurance policies allow them.
Consumer Intelligence’s latest biannual survey shows that nearly 70% of travellers are carrying more than £250 in cash when they go abroad, despite most insurers not covering them for this.
The study also revealed that many major travel insurance providers cover only £200 of cash on their standard policies. The most generous provider was Direct Line, covering £500 worth of personal cash.
Insurance cover for those who have lost or stolen money while abroad differs. Travel insurers offer different exclusions and excesses for those carrying cash abroad, meaning that some could be in for a shock when they come to claim.
Despite the risks involved in taking money abroad, the Consumer Intelligence biannual survey showed that cash is still king for most holidaymakers. The most common amount of cash taken on holiday is between £250 and £499, with 30% of people taking this amount.
The second most popular amount of cash to take is between £500 and £999, with around 26% of respondents saying that they take this amount on holiday.
70% of this cash is purchased a few weeks before it is needed, meaning that lots of people are storing large amounts of travel money at home before going on holiday.
Andy Buller, Travel Money expert at Consumer Intelligence says:
“Our customer studies show that most travellers carry far more cash than their insurers would ever pay out on, if they were to lose it or have it stolen,” he said. “It's a risk that many don't consider, but travel money providers - especially those who also offer travel insurance, could use this as an opportunity to create loyalty by advising customers on safer ways to take money abroad such as prepaid cards, or additions to travel policies that would cover the additional cash that customers carry.
“Our surveys show that many customers feel little brand loyalty to their travel money providers, but information like this that would genuinely keep customers safer could keep them coming back for more."
Do you carry cash or use alternative payment methods whilst travelling abroad? Let us know in the comments.