Holidaymakers cutting corners on travel insurance, AllClear warns

As the summer holiday season reaches its height, new data from AllClear Travel Insurance reveals a concerning trend: more British travellers are opting to downgrade or forgo travel insurance altogether, with cost-of-living pressures fuelling risky decisions and widespread misconceptions about cover.

A survey of 2,000 UK adults found that 80% plan to cut back on holiday spending this summer. While measures such as hand-luggage-only travel and budget flights are popular, an increasing number are taking greater risks by skipping insurance or selecting the cheapest option available.

The number of people travelling abroad without any insurance has jumped from 9% last summer to 15% this year. Among those still buying cover, 30% now opt for the cheapest policy – up from 20% last year.

The trend is particularly pronounced among travellers with pre-existing medical conditions. Of this group, 21% said they would travel with no cover, 30% would buy the cheapest policy, and 13% admitted they wouldn’t disclose their full medical history, in order to save on premiums. One in five would skip insurance entirely for short-haul holidays.

“These decisions aren’t just about money – they’re about misunderstanding,” said Garry Nelson, Head of Corporate Affairs at AllClear Travel Insurance. “Too many people are treating travel insurance like a commodity, rather than a safety net.”

Older travellers appear more cautious: only 9% of over-55s plan to travel uninsured, and 68% say they will always disclose their full medical history.

Younger holidaymakers are most likely to cut back. Among the under-25s, 93% are looking to reduce holiday spend, with 19% willing to travel without cover and 22% believing “all travel policies are broadly the same”.

“These aren’t just abstract statistics – they reflect real-life risks,” Nelson added. “Saving money on the wrong things can end up proving to be a dangerous false economy.”

Nelson recently spoke to ITIJ about the ‎reasons some travellers do not buy the right insurance, and the potential severe ‎consequences.