Extra costs to budget for if you're heading overseas this summer

When budgeting for a holiday there are a lot of small expenses that often get overlooked. It isn't until we get home and tally the costs that we realise how much the little things can add up.

So, don't get caught out by these hidden costs this holiday.

Travel insurance

If you haven’t yet bought travel insurance for your trip, it’s not too late. While the ideal time to buy insurance is when you book your trip, you can still take out insurance right up until the last minute.

Travel insurance isn’t usually a big expense to budget for. Quotes can start at as little as 79p* for a single trip.

But if you’re travelling with someone over the age of 65 or have any pre-existing medical conditions, your cover might be more expensive than average, so make sure you compare travel insurance quotes to find the best deal for a single-trip or annual policy.

Kara Gammell
Personal Finance & Insurance Expert

Don't leave buying your travel insurance too late

By getting your travel insurance at the same time as when you book your trip you can make the most of your cover – in particular, coverage for cancellations and travel disruptions.

If an emergency prevents you from going through with your holiday plans, like an injury or a redundancy, your travel insurance can help you reclaim the cost of your trip. It can cover deposits, travel costs, accommodation, and activities you've pre-paid for if you can’t get a refund.

Data and roaming charges

While some providers have decided to keep things totally free in EU countries, many mobile phone providers have re-introduced roaming charges for Brits going to the EU.

So, if you’re heading to the Continent this summer, this could mean a bigger phone bill on your return.

If in doubt, speak to your mobile phone provider before you jet off, or consider getting a temporary SIM or eSIM to access local networks. These can save you some money and give you better coverage while travelling.

For more information, check out our guide to mobile networks’ roaming charges or read our tips to avoid roaming charges.

The hidden costs of using cards

In many cases, additional charges will apply when using your card overseas to pay for items or withdraw cash.

When taking money from a foreign ATM with a debit card, for example, there may be an extra 'foreign currency transaction fee' applied to your withdrawal. This is usually either a flat rate of £1-£5 or a percentage of your total withdrawal - typically between 1-3%.

In addition, the foreign bank may levy a small charge for using its machine.

With this in mind, try to avoid withdrawing small amounts of currency while you're abroad. Instead, get your travel money before you travel and keep withdrawals to a minimum.

When it comes to spending on your credit card, you could also get stung by foreign usage fees. You may be able to avoid additional transaction fees by choosing a credit card specifically designed for travel.

Compare with us to find the best deals on credit cards to use abroad.

If you are given the option by a seller to pay in pounds rather than local currency, take care not to fall for the 'dynamic currency conversion' con.

Paying in pounds could get you stung with a poor currency rate applied, and sellers may even add on additional charges.

This could mean the transaction ends up costing you more than it needs to. If you can, always opt for the local currency.

For more tips on sensible holiday spending, check out our guide to the best ways to spend money abroad.

Driving costs

If you’re planning to drive while you’re abroad then there are a plenty of expenses you need to factor into your budget. On top of the outright costs of renting a car, make sure there’s room in your holiday budget to cover these expenses as well:

Insurance

Don’t forget to sort out your international car insurance cover. Most standard UK car insurance policies will offer at least third-party cover for trips within the EU, but if you want comprehensive cover or if you’re travelling outside of the EU, you may need to buy separate insurance.

If you’re renting a car abroad, insurance will usually be included, but keep in mind that cover is often minimal and can come with high excess fees, so it may be worthwhile getting extra car hire excess insurance.

Fuel and charging costs

The cost of fuel and EV charging rates will differ depending on where you’re travelling, so you’ll need to consider what vehicle you’ll be driving and how much it will cost you to get around while you’re on holiday.

For trips within the UK, our fuel cost calculator comes in handy to help you plan your travel costs, but for days out abroad it may be worthwhile to plan the driving routes beforehand.

You’ll also find it useful to map out petrol stations and EV charging points on the way so you’re not caught with an empty tank and no clue where to go.

Parking fees

Parking fees get pricey if you’re taking trips into the city and these expenses can add up quickly if you’re driving around regularly. If you’re not factoring the price of parking into your budget, you may find it quickly eating away at your holiday funds.

The price of parking in Paris, for example, can go up to as much as €6 per hour, which is a lot to pay if you're only making a quick stop for lunch. You might also find that some older parking machines abroad only take cash, so be prepared.

Kara Gammell
Personal Finance & Insurance Expert

Save some cash by travelling on foot

While it might not be realistic to rely entirely on public transport to get around during your holiday, it can sometimes be a cheaper option than driving. Some regions even offer free or discounted public transport passes to tourists staying at participating hotels and accommodations.

Many popular cities have plenty of public transport options to choose from – from trams and trains to buses and even ferries. Taking public transport can give you an authentic travel experience and show you more of the area. Just make sure you plan your route first and be aware of pickpockets or luggage thieves.

_{*Using the 10th percentile of premiums, based on individuals aged 30 with no pre-existing medical conditions, taking single trip cover for 3 days to France. Using MoneySuperMarket policies sold between April 2025 and June 2025}