According to online financial surveyors Defaqto, many people still have an unrealistically high expectation of how much travel insurance costs.
Brian Brown, associate director at Defaqto, said that many people are taking what amount to unnecessary risks when going on holiday by not taking out insurance cover for a few pounds, which could in theory save you thousands.
"A lot of people just don't think of it," he said. "Some people are even reluctant to spend eight pounds - that's three drinks on holiday."
With the rise in online shopping for cheap flights, many people opt out of travel insurance that will add more money on top of the holiday cost but Mr Brown says the hit on your wallet may not be quite what you were expecting.
"With travel brochures you get it into your head that it costs £30 for cover [but] if you shop around it can come to a lot less."To read more about insurance, click here.
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