Millions 'wasted on travel insurance'

British holidaymakers waste £1.3bn (€1.96bn) each year on travel insurance, according to research published today.

Two out of three people travel at least twice a year, yet buy expensive single trip cover, the study by Alliance and Leicester found.

Only 27% of adults questioned had annual travel insurance polices.

The survey revealed Scots plan to travel the most with 68% having at least two holidays this year, followed by people in the south east (65%), east Midlands (65%) and south west (64%).

Yet Scots are also among the least likely to have an annual travel policy (22%), the study found.

The Welsh were revealed to escape the least with only 51% holidaying two or more times.

Almost half of the estimated 28.8 million Britons who travel at least twice a year buy insurance each time they travel – despite the fact there are free offers available.

The average single trip policy costs from £10.49 (€15.90) to £60.00 (€90.9m) according to today’s research.

This means travellers could be spending a total of £1.3bn (€1.96bn) on insurance per year.

Ewan Edwards, head of current accounts at Alliance and Leicester said anyone who travels more than once a year is almost certainly better off getting an annual policy, which works out cheaper in the long run.

“Better still, people can benefit from free travel cover,” he said.

A separate study published today for Direct Line Travel Insurance revealed holidaymakers could save up to 65% on travel insurance by shopping around instead of buying it as an add-on from tour operators.

Chris Price, business manager for Direct Line Travel Insurance said consumers need to shop around.

“With summer coming, even more consumers will fall into the trap of lining the pockets of the travel firms, by buying insurance when they book their getaway.”