According to a new study, nearly four out of ten gap year travellers do not take out adequate travel insurance, it has been revealed.

Research from the Foreign and Commonwealth Office (FCO) has found that 41 per cent of graduates opting to take a year out had owned up to have failed to purchase insurance before leaving the UK.

The research also found that 35 per cent of those surveyed had struggled with finances overseas admitting that they had run out of money.

HM Ambassador to Bolivia, Nigel Baker, stated that students “can be vulnerable” whilst away.

He said: "For many it's the first overseas trip they take without their parents and they are often actively looking for an exotic adventure that can lead to problems for a small minority.”

Baker advised students to ensure they are covered whilst away by taking out adequate travel insurance.

He said: "I would advise students - and their parents - to be as prepared as possible by getting travel insurance, budgeting properly and seeking advice from trusted sources."

Meanwhile, EHIC holders have been warned that they should start to renew their cards as 3.3 million EHIC cards are soon set to expire.