Nearly eight out of ten holidaymakers are putting their finances at risk by failing to purchase travel insurance, new research as shown.

According to research from insurer World First, a “worrying” number of holidaymakers are failing to take out any cover at all with 80 per cent of domestic holidaymakers avoiding taking out travel insurance.

Managing partner, Martin Rothwell of World First Travel Insurance said that the “statistics has revealed that a worrying number of people forget to take out any cover at all if they are taking a domestic break.”

Rothwell has advised holidaymakers to ensure they purchase travel insurance, especially during the financial crisis.

He said: “At a time when all of us are watching what we spend, financial protection is more important than ever before.

People simply forget that they could be charged for a holiday they cannot take and there could still be major cost implications during a domestic break.

For example, most long distance ambulance trips home following an accident whilst on holiday are not covered by the NHS; they are covered by our policies."

Statistics from Continental Research found that these figures will increase this summer by as much as 30 per cent.