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MONEY COMMENT
Big Savings On Holiday Essentials

By Cliff D'Arcy
June 5, 2003

I read somewhere recently that we Brits take more foreign holidays than most of our American and Continental cousins. I think we need them, as we work longer hours than many of our foreign counterparts!

Anyway, here are three Foolish tips on saving money before you head for the sun.

Travel insurance

Please don't go abroad without travel insurance. If something goes wrong on holiday (and it so very often does), travel insurance can turn disaster into inconvenience. However, never buy travel insurance from travel agents, as they usually charge a fortune for inferior cover. Leading market research company Defaqto claims we waste £250 million a year on rip-off insurance from travel agents.

So, if you want comprehensive cover at a great price, visit our Insurance Centre or choose one of these "single trip" or "annual" policies (here is Defaqto's full list):

Best Buys (single trip policies) with marks out of ten

  • Direct Travel (Premier Plus): 9
  • Journeywise Direct (SuperCover): 9
  • Marks & Spencer (Single Trip): 9

Best Buys (annual policies – for frequent travellers)

  • Travsure (Annual Travel Holiday): 10 – the only policy to get full marks from Defaqto
  • Marks & Spencer (Annual Travel Insurance): 9
  • Insure.co.uk (Annual Travel Insurance): 9
  • Journeywise Direct (Annual Frequent Traveller): 9
  • Npower (Annual Multi-Trip): 9

The typical 60% saving (!) you'll make from not buying insurance from your travel agent will help you to buy more:

Foreign currency (holiday money)

We all like to enjoy ourselves and splash our cash while we're away, otherwise what's the point? However, if you don't shop around, you could easily get short-changed when buying foreign currency.

The trick is to call or visit a few banks, building societies, supermarkets and so on and ask "How many Venusian Gobbets (the currency you're after) will I get for £500 (how many pounds sterling you want to spend)?" Then, you simply take the deal that gives you the most Gobbets, euros, dollars or whatever in your hand. Forget about exchange rates, commissions and so on – they're just a big headache!

Sun care products and other holiday goods

A recent survey from Holiday Which? confirmed that Boots (LSE: BOOT) is one of the most expensive retailers of these items. Try your local ASDA or Tesco (LSE: TSCO) instead, which charge some of the lowest prices for everyday holiday items.

Oh, and by the way: have a wonderful holiday!

More: Buy travel insurance online through the Fool