Brits are increasingly facing a travel insurance shortfall as holiday prices soar. According to Go.Compare, the average expenditure on holidays was £2,644.46 in 2025. Yet, many travelers may find their travel insurance won’t fully cover cancellations, leaving them financially exposed. A review of 928 single-trip policies indicated that 20% provide cancellation cover only between £1,000 and £1,999, and 2% lack cancellation coverage entirely.

The lack of adequate cancellation cover is troubling as vacation costs rise. Rhys Jones, an expert at Go.Compare, noted, “Many people don’t realize 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 findings also revealed that men tend to spend more on holidays than women, averaging £2,926.24 compared to £2,375.53. With the 2026 holiday season on the horizon, increased spending is anticipated due to climbing tourist taxes and air passenger duty rates.

To mitigate potential losses, Go.Compare advises holidaymakers to thoroughly review their travel insurance policies to ensure adequate cancellation coverage. Understanding insurance specifics is vital given the substantial financial commitments involved in many trips.