Last-minute holidays fuels travel insurance problem

Sainsbury’s Bank warns that travelling abroad without insurance is a growing issue fuelled by the huge number of people who book last-minute deals.

New research from Sainsbury’s Travel Insurance reveals that for their summer holiday this year, up to 8.8 million people (18% of the adult population) will have booked a last minute deal around two weeks or less before they travel in order to save money. However, nearly one in five (19%) will not have bought travel insurance. According to GfK NOP’s Financial Research Survey, around 11% of people went on holiday without insurance in the 12 months to June 2007.

Sainsbury’s Travel Insurance estimates that as many as three million people travel abroad every year without insurance but it believes this could rise if more people go for last-minute deals.

Steve Johnson Head of Travel Insurance Sainsbury's Bank said: “Greater use of the internet and growing competition in the travel industry means that there are many holiday bargains to be had. This is great for holidaymakers, but without appropriate insurance in place a holiday can soon turn into a nightmare if disaster strikes. The stress and cost involved in sorting out any potential problems could run into hundreds or thousands of pounds, surely cancelling out any money saved on a late deal.

"If you are planning a number of trips in a year, maybe a summer break and a few weekends away, it's worthwhile considering an annual policy, ours starts from just £30.00."

On a location basis, London has the highest percentage of people (24%) who intend to book a last minute deal for their summer holiday, and Scotland and Yorkshire/Humberside are the lowest (11% each).