Brits spent an average of £2,644.46 on holidays in 2025, according to Go.Compare travel insurance. However, a significant number of travel insurance policies may not fully cover cancellations, potentially leaving travellers out of pocket. Analysis of 928 single-trip travel insurance policies revealed that 20% only offer cancellation cover between £1,000 and £1,999, whilst 2% provide no cancellation cover at all.
The disparity in cancellation cover is concerning as holiday costs continue to rise. Rhys Jones, an expert at Go.Compare, highlighted the importance of checking insurance policies thoroughly: “Many people don’t realise how much they’ve actually spent on a holiday until it’s too late. With the average trip now costing over £2,600, having insufficient cancellation cover could mean losing thousands of pounds.”
The study also found that men spent more on holidays than women, averaging £2,926.24 compared to £2,375.53. As the 2026 holiday season approaches, spending is expected to increase further due to rising tourist taxes and air passenger duty rates.
Go.Compare urges holidaymakers to review their travel insurance policies to ensure adequate cancellation cover. With many trips involving significant financial commitments, understanding the specifics of insurance cover is crucial to avoid unexpected losses.
```
