According to a recent survey, a high number of Brits are ditching the sunny summer holiday abroad in favour of a staycation as the budget cuts have left people with less money to splash on holidays. However a large proportion of those who are venturing aboard say they are considering cutting back on travel insurance as a way to save money, something which experts warn could be a false economy should they encounter difficulties during their trip.

AA Insurance found that 21% of British people have decided against leaving the UK for their annual holiday this year with 40% of those reporting that they simply can’t afford it, or that the downturn has forced them to reconsider their plans for a foreign holiday.

47% of those questioned as part of the survey said that the economic situation had affected their travel plans and that they will be looking at their budget more closely while deciding where to take their holiday this year. One way many of these travellers say they may try to save money is by not taking out holiday insurance.

However experts are warning that this could be a false economy as the cost of medical bills in a foreign country, even within the European Union, could set Brits back by thousands if they are not covered.

With many price comparison website offering holidaymakers the chance to compare the cost of travel insurance cover with a wide range of providers, it’s never been easier to find a great deal on holiday insurance, so there’s no excuse for holidaying without adequate cover.