Going on holiday can be expensive, with flights, accommodation and car rentals all quickly adding up. This is why finding ways to save money abroad can make a big difference. Here are the top eight ways to cut costs when on holiday:

1. Avoid Currency Conversions

When paying for something abroad, whether at a supermarket, public transport or in a restaurant, you should always pay in the local currency as it will almost always be a better deal. Letting the company of your bank card convert the amount into your home currency, you are likely to end up paying a worse exchange rate and potentially incur hidden fees. By choosing to pay in the local currency, you’ll avoid unnecessary conversion charges and get a better rate overall.

2. Consider Your Payment Method

Your chosen payment method could significantly affect the amount you spend on your time away, particularly if you are using a card. This is because lots of card companies charge foreign transaction fees when you make purchases abroad. This also applies to using your card to withdraw cash from ATMs; you may face a cash withdrawal fee alongside interest on the amount withdrawn.

To get around the fees of foreign cards you should do some research into cards that do not charge foreign transaction fees or ATM withdrawal fees abroad. Hidden exchange costs can add up so a card with no international charges has the potential to save you a lot of money.

3. Skip the Airport Bureau De Change

Be aware that although exchanging currency at the airport is convenient, it’s rarely a good deal. They offer poor exchange rates as they know travellers are likely to want to convert their money at the last minute – don’t fall into this trap.

Instead, plan to exchange your money before you travel. Compare rates at travel money providers and the Post Office on your high street to secure the best deal.

4. Bring Global Health Insurance Card (GHIC)

If you are travelling to the EU, you should make sure you are carrying your Global Health Insurance Card (GHIC). The GHIC offers essential health coverage in countries that are members of the European Union. This means you can access state-provided healthcare in these countries at a reduced rate. However, without a GHIC you are likely going to have to pay for the cost of medical treatment upfront which can be costly. Make sure your GHIC is valid before travelling as you will save money if you have an accident or are taken ill abroad.

5. Escape Roaming Charges

Another cost of travelling abroad is mobile roaming charges. If your phone contract does not include roaming then whenever you use your phone to call, text and use data, you’ll face some hefty charges.

Check your phone plan. If it does not offer roaming you can consider purchasing a local SIM or an E-sim, or only usie Wi-Fi. If you frequently travel abroad, it’s a good idea to look for mobile plans or apps offering discounted international rates for calls, texts and data.

6. Prevent Luggage Fees

Airlines will often charge you if you go over the weight limit. To avoid these fees, pack light and, if you can, stick to carry-on luggage when possible. If you are checking in suitcases, make sure you weigh them before going to the airport to avoid excess baggage claims.

7. Understand Local Driving Rules

Researching local driving laws and understanding what they mean can help you avoid paying fines as some countries may have different rules regarding speed limits or parking regulations, for example. This means that familiarising yourself with local driving rules and requirements, as well as road signs and markings, can help you avoid making mistakes that could lead to fines and tickets. Our blog offers comprehensive guides on driving rules in various countries.

8. Purchase a Car Rental Excess Insurance Policy

Purchasing a car rental excess insurance policy from us allows you to save money in two ways.

Firstly, although rental companies do offer excess waivers, these tend to be expensive and provide less comprehensive coverage than what we offer at Cover4Rentals.

Secondly, without an excess insurance policy, you risk being charged a significant amount for accidental damage upon returning your rental car. With an excess insurance policy from us, you can be reimbursed for these costs.