Potential holidaymakers have been advised to not underestimate the importance of travel insurance this summer.

The British Insurance Brokers Association, (BIBA) have issued the advice that travel insurance is a must, but customers must ensure they purchase a policy which best suits their needs.

Graeme Trudgill, the technical and corporate affairs executive at BIBA, said: "People tend to see it as a commodity attached to their holiday but it is something you've got to rely on."

He added: "If something does go wrong abroad, you want to be able to phone someone who speaks your language [and] who knows how to get someone to help you, [or] get you some medical attention and pay for it."

Savings

In contrast, according to a leading financial research company, holidaymakers who actually purchase travel insurance could be paying less then those who don't.

Defaqto, the financial information company has claimed that travel insurance has never been as cheap as it is today. Its 2008 survey into travel cover analysed prices for over 235 single trip and 245 annual travel policies and found that the only area where premiums have increased in the past year was for annual travel cover to the USA.

However, premiums are still lower than they were in 2003, before inflation is taken into account. Single trip cover for a short break to Europe can now often be bought for well under £10.

This revelation follows the news that one in seven people travel overseas without any type of travel insurance cover. This is despite the fact that any savings made by scrimping on cover could turn into a false economy, if an accident happens while you are abroad and have to pay for medical treatment, or if an expensive holiday has to be cancelled.

Trips

Holidaymakers are further advised to take out insurance to ensure they are covered on any dangerous or adventurous holidays abroad and against the risk of losing prized assets.

Sean Tipton, the press officer at the Association of British Travel Agents (ABTA), has commented in the wake of a Foreign Office survey, which has revealed that two out of three holidaymakers went bungee jumping without checking first if they would be covered on their insurance policy.

He said: "For anybody going abroad for their holiday or a business trip it is extremely foolish to travel uninsured. If you're going on a holiday which involves greater risk, such as an adventure holiday, or going to do something that is potentially risky without insurance then it is incredibly irresponsible."

The survey went on to suggest that only one third of holidaymakers take out additional insurance to cover them for participation in dangerous sports, despite the fact that their existing travel insurance policy does not provide adequate cover. It's a fact that most standard insurance policies require that an additional premium be paid if a policyholder plans to take part in dangerous sports.

Sean Tipton concluded by saying: "If you take more than two trips a year anyway then it is very sensible to do that take out annual insurance because you'll get the benefits of it straightaway."