Make sure your last minute holiday really is a bargain

If you’re grabbing a last minute holiday this summer, you could find yourself packing in a rush. That could mean you’re arranging holiday money with little time to spare too, or not really thinking about insurance.

But if you don’t give these personal finance matters proper attention, you could end up paying more than you bargained for. So here are some money saving tips to makes sure you’re prepared financially for your last minute break and that it remains a great deal all round.

Don’t be lazy, shop around for your travel money. In general, ordering online before you head off is going to get you a better deal than visiting a bureau de change, particularly if you leave it until you reach the airport. So get online and see what the comparison sites have to offer or check out Money Saving Expert’s travelmoneymax.com which helps you track down the best deals.

Don’t just assume that travellers cheques are the best alternative to cash. Prepaid currency cards, like those offered by companies such as ICE, Travelex and Fair FX, can be a much more flexible option. You simply purchase a card, load up your currency online or at participating outlets, and then you can use your card at millions of ATMs, shops and restaurants worldwide. And once you’ve bought your card, you can top it up every time you travel.

Make sure you know exactly how much your usual credit and debit cards will charge you if you plan to use them while you’re abroad. Most credit cards charge a fee of about 2.5-3% if you withdraw cash while you’re overseas, although some have a higher charge. And remember, it will be much cheaper to use your credit card to make a purchase than to withdraw cash.

Most debit cards will charge a currency exchange fee, but there are five that don’t which offer great value if you travel regularly. The star cards are offered by Intelligent Finance, HSBC, Nationwide, Coventry, First Direct and Halifax.

As with travel money, don’t be lazy when it comes to buying travel insurance. It can be tempting to buy the policy you’re offered when you book your holiday, but it will nearly always pay off to shop around. So go online to make sure you get the best value and the best policy for your needs. Annual policies are growing in popularity and offer great value if you travel more than a few times a year. They’re also handy if you prefer to grab last minute bargains – you avoid the hassle of getting last minute insurance in place.

Buy your travel insurance just as soon as you can, once you’ve made your booking. That way, if you, someone you’re travelling with or a close relative becomes ill or injured before you head off, you should be covered for cancellation – but always check the terms. Being called up for jury service is often covered too.

When it comes to travel insurance, have a proper think about your actual needs before you buy. A good starting point is the minimum recommendation from moneysupermarket.com :

£2m for medical expenses
£1m personal liability
£3,000 cancellation – or enough to cover the total cost of your holiday
£1500 baggage
£250 cash
Policy excess under £100
Cover for scheduled airline failure and supplier failure
Delay cover (eg £20/hour for first 12 hours)

Not everything will be automatically covered by all travel policies. So make sure you have your credit cards, money and passport insured and take out additional cover if necessary.

If you’re not booking a package holiday, but taking several flights, make sure all your flights and accommodation are still covered if just one flight is cancelled or delayed, having a knock on effect. If you have an annual multi-trip insurance as opposed to single trip insurance you are more likely to be covered for this.

Finally, remember to cancel the papers and the milk, and organise transport to and from your departure airport. Ideally you can arrange a lift with friends. Otherwise source the cheapest public transport or local taxi, or get online to find the best deal on long stay airport parking. It can save you another small fortune, even before you’ve left the country.

These are just some of the things to think about if you want to relax on holiday in the knowledge that you have everything covered and really are saving money with your last minute bargain. For more money saving tips this summer, why not visit moneydashboard.com