With holiday season in full swing and millions of Brits packing their bags for a long-overdue break, Hodge Bank is reminding travellers to make sure their finances are protected before they go jetting off.

While travel insurance covers the essentials, like lost luggage and medical emergencies, it could fall short when it comes to protecting the bigger financial picture. Christie Cook, Managing Director of Retail at Hodge, says it’s important to keep an eye on your finances even when you’re enjoying a break away.

“Travel insurance is important, but it’s just one piece of the puzzle.  Returning home from holiday to unexpected costs, frozen accounts, or complex family issues, could certainly undo the relaxing benefits of your holiday.”

The overlooked financial risks travellers should consider:

Joint accounts and legal access

“If something happens abroad, can your partner or family easily access shared funds or manage your affairs? People often assume because they have a joint account, everything will run smoothly in an emergency.

“But in reality, it can be tricky to manage day-to-day finances if something goes wrong abroad and the right access or legal protections aren’t in place.”

Medical bills which exceed cover limits

“Even with insurance, high-cost destinations or extended stays can leave you out of pocket.  Medical costs can escalate quickly when you’re abroad.

“Without proper financial back-up or a clear understanding of the limits of your policy, it could lead to significant financial stress on return.”

Power of attorney while travelling

“If you’re away for a long period, do you have someone who can legally act on your behalf if needed?

“Being abroad for an extended period, or even just being unreachable can cause issues if urgent financial decisions need to be made back home. Having a trusted person with the legal authority to step in could make a huge difference.”

Ultimately, while holiday insurance is a sensible first step, it’s not a catch-all solution. Travellers should take time to understand the financial implications of being abroad, from who can access money in an emergency to how medical or legal complications could affect them or their families.

As with all financial decisions, preparation is key.