Latest travel industry updates have revealed that Brits are spending more on summer holidays in 2022, in comparison with trips before the Covid-19 pandemic.
The news comes as tour operator TUI revealed that average spending prices for summer 2022 are up 15% compared with 2019. Experts within the industry have also predicted that the number of trips abroad next year will be close to that of those taken in 2019.
While this is great news for the travel industry, travellers spending more money on their holidays must be aware of the cancellation cover limit available within their travel insurance policy.
It is important to understand your cancellation limit as this will be the amount that your insurer will allow you to claim up to, should you need to cancel your trip. Of course, this is provided that the reason you are cancelling your trip for is covered in your policy and that you cannot recover the cost of your holiday elsewhere. For example, through your tour operator, bank or credit card provider.
The cancellation cover limit should match – or exceed – the amount you spend on a holiday – otherwise you leave yourself at risk of being left out of pocket if you need to claim.
Cancellation limits in a travel insurance policy can either be presented as an amount per person or as the overall trip cost. Limits will vary from provider to provider and may even change depending on the type of policy you have. For example, more premium policies may have somewhat higher cancellation limits than standard ones.
It’s also worth being aware that the price of a policy may slightly increase if you require additional cancellation cover for an expensive holiday. We know that spending more money on a policy isn’t exactly ‘ideal’, but, in the long run, it’s always worth spending a few extra pounds to make sure you are fully protected.
So, whether you’re planning on splashing out on a deluxe getaway, or just nipping abroad for a cheap and cheerful break, we would strongly recommend taking the time to fully understand the cover your chosen policy has, before purchasing.