Holidaymakers are ditching travel insurance to save money, according to new research by Finder.
A Finder survey of 1,062 respondents – 718 of whom have travelled in the last 12 months – found almost half (46%) had altered their travel insurance in some way to cut costs.
The research revealed 15 per cent had skipped taking out travel insurance altogether to reduce costs, while one in five (21%) took out the cheapest possible travel cover.
One in 10 (10%) only insured part of their trip to keep costs down, and a similar amount (9%) avoided visiting certain countries they thought would make their insurance more expensive.
A further eight per cent have lied on their application to hack down their premium.
Angus Kidman, travel insurance expert at Finder, said appetite for travel remains high despite cost of living pressure.
“Aussies are reluctant to cut spending on travel, but skimping on travel insurance is a really dangerous trend,” Kidman said.
“You should never cut corners with your travel insurance – it could come with serious consequences.
“An overseas emergency can trash your finances if you don’t have adequate cover.
“Bottom line? If you can’t afford insurance you shouldn’t be travelling in the first place.”
Kidman said there can be major consequences for lying on your insurance application.
“Lying on your travel insurance application is a form of insurance fraud and can have lifelong consequences.
“If it’s detected, you won’t be covered and you may be refused cover in the future.
“If you have made an omission on your application, clear up any misinformation with your insurance company before you leave.”
Kidman said there are different levels of insurance for every budget.
“If you are worried about paying too much, compare multiple travel insurance policies so that you can purchase the coverage you need at a rate you can afford,” Kidman said.
