Travel insurance cost equal to just 1% of holiday spending

Based on the figures, UK travellers spend an average of £1,484 during a two-week holiday, while the average cost of a single trip travel insurance policy is only £20. This means insurance is equal to just 1% of their spending abroad, highlighting that the cost of a policy is relatively low, despite its perception among some as being too expensive.

The research, which comes from Go.Compare, was calculated using a combination of the site’s internal sales figures and 2023 Travelpac data on UK holidaymakers’ expenditure. It compiled the total amount of money and nights spent on holiday during the year to calculate the average spend per trip, then compared this with the average cost of travel insurance.

Despite its proportionately low price, uninsured travellers named cost as the main reason they didn’t get cover in a previous study by the comparison site. Around a quarter (26%) said it was their primary deterrent, equal to 3.6 million travelling without cover due to price in the second half of 2021.

A total of £14.3 million was lost in claims during this period by travellers who didn’t get cover because of its price, showing that uninsured holidaymakers are taking a huge gamble.

Rhys Jones, travel insurance expert at Go.Compare, said: “It’s frustrating to see that travellers are taking a risk on insurance on the basis of its price, when in actual fact it represents a miniscule percentage of our holiday spending. At an average cost of £20, getting a policy for your trip is well worthwhile, as it could save you a fortune in the long run.”

Klook Protect’s recent survey exposes travel insurance gaps.