Travellers 'risk under-insurance'
30.09.2008
Backpackers tend to buy cheap travel insurance but sometimes this can leave them underinsured, an expert warns.
Tom Griffiths, founder of gapyear.com, explains many travellers fail to understand what is covered by their travel insurance, meaning they end up without cover if they partake in adventure sports or certain activities.
However, lacking the right travel insurance can mean parents have to come up with large amounts of cash if their offspring ends up hospitalised, he continues.
"It is relatively easy to knock up a bill of £30 to £50,000 and for most people, to have to raise that money means re-mortgaging the house or dipping into your life savings," Mr Griffiths warns.
A recent study by American Express revealed the gloomy economy is causing many holidaymakers to cut back on travel insurance.
It found almost a quarter decided to ditch their travel insurance for their break this summer.
Furthermore, the credit card provider noted, 16 per cent of backpackers plan to keep their cash in their jeans pockets as they travel.
Tom Griffiths, founder of gapyear.com, explains many travellers fail to understand what is covered by their travel insurance, meaning they end up without cover if they partake in adventure sports or certain activities.
However, lacking the right travel insurance can mean parents have to come up with large amounts of cash if their offspring ends up hospitalised, he continues.
"It is relatively easy to knock up a bill of £30 to £50,000 and for most people, to have to raise that money means re-mortgaging the house or dipping into your life savings," Mr Griffiths warns.
A recent study by American Express revealed the gloomy economy is causing many holidaymakers to cut back on travel insurance.
It found almost a quarter decided to ditch their travel insurance for their break this summer.
Furthermore, the credit card provider noted, 16 per cent of backpackers plan to keep their cash in their jeans pockets as they travel.