Holidaymakers are being warned to steer clear from carrying cash with them on their Easter holiday this year and opt for a travel spending card instead.
According to Consumer Intelligence (CI), British travellers are risking overspending during the Easter break by taking cash instead of using cards.
The latest research revealed nearly two out of five holidaymakers take, on average, more than £500 in cash when travelling aboard.
This is considerably more than the £250 most travel insurance companies will pay out for.
The research estimates that more than two million travellers are preparing to head overseas this Easter.
If the worst is to happen and the money is either lost or stolen, the chance of getting it all back is slim, CI warns.
The research highlighted the average insurance payout policies.
For an excess of £100, the Post Office’s standard travel insurance policy will pay out £250. This is the same for Marks & Spencer although they only require an excess amount of £50 per person.
Direct Line offers the best deal with a cash limit of £500 (£250 per adult insured with their Multi-trip package) at an excess of £50.
Tesco Bank offers holidaymakers a standard multi-trip deal which would cover the loss of £200 with a £60 excess.
Insure & Go offer a similar deal with their Silver Multi-trip cover but will only pay out £100, at an excess of £60, for money lost at the beach.
“I’m constantly surprised by the number of cash holidaymakers still choose to take out of the country given the decline in the use of cash at home”, said travel expert Andy Buller.
He went on to add: “Most travellers carry far more cash than their insurers would ever pay out on if they were to lose it or have it stolen and there are safer ways to take money abroad.”
If a travel spending card is misplaced or stolen, chances are the money on it will remain secure.
Travellers may have to phone their provider to either freeze the card or be sent a new one, but the money left on it will not be lost.
It is easy to fall into the trap of using debit cards abroad but this too will see tourists part will more money than is necessary.
Many UK debit cards charge an ATM fee but also load on a £1.50 charge for every use.
Something that may not be obvious at first but would soon add up.
A pre-paid travel card works in a similar way to a debit card but does extra fees are not added in the same way as a bank.
Before departure travellers load the money onto the card that they wish to spend whilst away and can take this card to withdraw at a foreign ATM for a much better rate.
Each card and card provider have different policies and exchanges rates so brush on up these before you travel if you wish to avoid any costly surprises.
