American Express suggests holidaymakers to keep travel insurance

People should make sure that their effort to reduce their expenditure does not land them in holiday hot water.

American Express Insurance Services revealed that as consumers are increasingly planning to cutting down their spending. The one way they prefer is choosing to go without travel insurance while on holiday.

For those consumers looking for an effective way to finance their holiday with family without putting themselves in stress by cut back on spending, applying for a personal loan may be advisable. This loan provides financial backing to the borrowers to fulfill their dream holiday efficiently.

According to the financial services firm research, an estimated 14.5 million Britons are set to slash their travel insurance policy when they go abroad over the course of the year. Such a figure comes as the company revealed that a total of 48 per cent of people are set to reduce on expenditure during 2008.

However, by not opting for travel insurance those holidaymakers may find that they have to pinch their own pockets in order to cope up with the disaster occurs during vacation such as lost luggage, delayed flights or medical treatment. By applying for personal loan borrowers may find that they can easily cope with monetary commitments, such as credit cards and utility bills.

Indeed, the firm revealed that by not getting cover these people may have to pay thousands of pounds in medical and repatriation fees, so "leaving them exposed and vulnerable".

Commenting on the report, Chris Rolland, head of American Express Insurance Services, said: "As the cost of living rises and there is less money left over at the end of each month, our research shows that one in four Brits are working hard to cope with the cost of holiday insurance. However, in such case of people cutting back on travel insurance in order to finance their holidays then perhaps they should think twice before booking."

He went on to report that those consumers who plan to go abroad more than once over the course of a year should look to take out an annual travel insurance policy. By taking out such cover Mr Rolland claimed that people will, in the long term, be able to save and can "shun from cutting back on spending while they should be relaxing on holiday".

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