Holidaymakers heading abroad this summer are being urged to consider how much they would be covered for if their banknotes and coins were stolen.
While most travel insurance policies do provide cover for lost or stolen cash, it may not be enough to cover some people’s entire holiday spend, according to financial information business Defaqto.
Its analysis of UK travel insurance policies found that 91% of annual and 86% of single trip policies include cash cover as standard.
Just over a third (35%) of single trip travel insurance policies cover as much as £200 to £299, while a quarter (24%) offer cover between £300 to £399, according to the analysis.
The firm also said holidaymakers should make sure they understand the terms used in policies.
Anna-Marie Duthie, a travel insurance expert at Defaqto, said: “Travel insurance often distinguishes between ‘money’ and ‘cash’ and the definitions matter. Money might cover credit cards or traveller’s cheques, whereas cash is notes and coins and they’re often covered under separate limits.”
Defaqto said that if holidaymakers are solely relying on cash while abroad, they should be aware that only 2% of policies it looked at offer emergency cash advances – which is when the insurer will provide people with emergency funds.
Here are some tips from Defaqto for holiday money habits:
– Keep receipts and statements for currency exchanges.
– If money is lost or stolen, check whether losses are recoverable through your bank or card provider first.
– Think about using banking apps that allow card freezing if you misplace yours, to stop it from being used.
– Consider having a back-up card or account, just in case your primary one is lost or frozen.
– Consider having cards from different providers, in case one of the systems goes down.
