For anyone jetting off on holiday this year, Martin Lewis has issued several pieces of advice that could help people save money on their travels. Speaking on his BBC Radio 5 Live show on Monday (Feb 6), the MoneySavingExpert.com founder told listeners five vital money tips - from travel insurance to renting a car.
During the episode, which can be listened to on BBC Sounds, the financial guru highlighted a number of ways holidaymakers can be end up actually paying out more money than they really should whilst on heading abroad. Martin also urgently reminded people about checking when their passport is due to be renewed, even if it still has a few months left before it expires.
He also advised Brits to ensure they have a valid European Health Insurance Card (EHIC) - or its replacement, the Global Health Insurance Card (GHIC) - before they leave. Below is five crucial points he mentioned, as reported by Coventry Live.
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Book travel insurance 'ASAB'
The first tip Martin gave was in regards to travel insurance, specifically ' ASAB' (as soon as you book). The majority of money you spend on travel insurance is to cover you in the months/weeks/days before your holiday for any medical treatment expenses if anything should happen before your journey.
“There is no point in having travel insurance that you get the day before you travel if you've had it booked for months because you're just foregoing much of the cover and much of what you are paying for.” He said.
You can get travel insurance for a specific trip or pay for an annual policy. Martin said that if you pay yearly and your cover runs out in July, but you have a holiday booked for August, your insurance will still cover you if something happens before July that stops you going away in August.
But you will still need to renew your insurance for another year to cover the trip itself. For this reason, Martin advised that was the way to go as long as your insurance is a reasonable price.
The best debit and credit cards to use abroad
While discussing what sort of cards people should use for their holidays, Martin said: “It's actually very easy [to use a card abroad] these days. The cheapest way to spend abroad – there is one that beats all the rest. What you have to understand is, normally, when you spend on plastic, your bank or card provider gets a near perfect exchange rate on the day.
"So very close to the spot rate – the rate that is traded on foreign exchanges. However, most providers add what's called a non-Sterling exchange rate fee to it, which is normally around 2.75 per cent.
"So the best way I can phrase this is if you were to buy something that cost £100 worth of Euros on that day at the spot rate, you would pay £102.75 for it.” However, there is a way to avoid paying this extra fee.
He added: “With specialist overseas debit and credit cards and pre-pay cards, they do not add that non-Sterling exchange rate fee. So you get the same near-perfect rate that the banks do.”
You may need a new passport - even if it doesn't expire yet
Certain countries require Brits to have several months still left on their passport before they enter. Most countries in the European Union (EU) require your passport to be valid for at least three months after the day you plan to leave the country - so best to double check how long is left on yours.
Countries such as United Arab Emirates (UAE), require that your passport is valid for at least six months from the day you enter the country. Martin said he knew of someone who had had to fly straight back to the UK after landing in the UAE because their child's passport did not have six months left on it. Many countries also insist that your passport is not more than ten years old.
You need a GHIC rather than a EHIC
Prior to Brexit, Brits travelling to European countries could take a European Health Insurance Card (EHIC), which covered you if you needed medical treatment in a state-run hospital or GP practice abroad. This would mean only needing to pay as much as or as little as locals would.
But following Brexit, the EHIC card has now been replaced by a Global Health Insurance Card (GHIC) for UK citizens. The GHIC works in the same way as the EHIC did, covering you if you need medical treatment abroad. If you don't have one when you travel, you can sometimes apply retrospectively, but it is far easier to get one in advance.
“It's absolutely crucial,” Martin said. “It can help mean that you don't have to pay the excess on your travel insurance. It means you can go and use a GP for free.”
Don't fall for car hire 'scare tactics'
Martin said that hiring a car abroad is “pretty easy” and there are plenty of comparison websites you can use to find a good deal. However, he did warn that prices have gone up substantially since the pandemic. He said that you should book as far in advance as possible to get the cheapest rates and the most choice.
But his big word of warning was on insurance. Martin said that many car hire companies will use “scare tactics” to get you to pay for excess cover beyond the basic insurance you may already have. This would be to cover the excess you may have to pay if the car picks up a scratch.
This excess cover can be really costly. And if you refuse to get it, the company may demand that you pay a deposit of between £500 and £1,000. They will often only accept credit card for the deposit and it must be in the name of the person who booked the car.
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