Travel insurance is the "wisest" purchase you can make when it comes to activity holidays and gap year trips, according to STA Travel.

The travel agency, which provides travel insurance and holiday advice for holidaymakers, including gap year students, found that many people felt travel insurance was not necessary, when they travelled.

A spokesperson for the STA Travel group said that insurance was sometimes viewed as an "unnecessary" cost; however, she added that for backpackers it was "undoubtedly" the most important purchase they could make.

"You should ensure the travel insurance you take out covers all the countries you plan to travel to and any activities you plan to participate in," She added.

STA Travel handles over six million passengers annually and has 400 branches, based all over the world, including in Australia, Latvia, the US and Thailand.

A recent report by market research company Defaqto found that one in seven holidaymakers still travel without insurance, despite the fact that premiums are becoming more affordable.