Despite the rising costs of holidays, many travellers are still skipping travel insurance, according to new research.

A survey of 4,000 UK adults by Aviva found that 11 per cent of travellers don’t buy travel insurance, even though the average cost of a cancelled trip is over £900.

Carolyn Scott, head of home and travel underwriting at Aviva, said the number was “worryingly high”.

“Travelling without insurance can leave people not knowing how to get assistance, and potentially facing significant medical bills in the event of illness or injury while overseas.”

She emphasised the importance of purchasing insurance as soon as a trip is booked to cover potential cancellation costs.

Ms Scott added: “Even before a trip starts, our figures show the average cost of cancelling a holiday is more than £900 if something unforeseen happens in the lead up.

“To ensure travellers are properly protected, insurance should be purchased as soon as a trip is booked.”

Here’s why travel insurance is so vital, and how you can find the right policy.

What is travel insurance, and what does it typically cover?

“Travel insurance provides financial protection against unforeseen circumstances while you are abroad,” explains Grant Winter, compliance expert at Good to Go travel insurance.

“It ensures that you have access to emergency medical treatment to avoid any unexpected costs, whether it’s travel insurance for medical conditions, for minor injuries, or serious emergencies.

“It also typically provides repatriation back to the UK by air ambulance if necessary, and emergency accommodation for a travel companion to stay with you while you are in hospital.”

What types of travel insurance policies are available?

The two main types of travel insurance are single-trip and annual multi-trip.

“A single-trip policy covers you for one holiday, ending when you come home,” says Mr Winter.

“Whereas, annual travel insurance covers you for a full year from the date the policy starts.

“If you travel more than twice a year, whether for long holidays or short weekend breaks, a yearly travel insurance policy could save you time and money.”

Also, if you travel at short notice, having an annual travel insurance policy could give you the peace of mind of knowing you’re covered, he adds.

Why is travel insurance important, even for short or domestic trips?

“Experiencing health issues on holiday that require medical treatment can be an extremely stressful time,” says Mr Winter.

“However, the situation can only be made worse if you suddenly find out you’re not covered by your insurer, potentially leaving you with a bill for hundreds or even thousands of pounds.”

How much medical coverage should a traveller ideally have when going abroad?

“Travel insurance covers medical expenses and emergency treatment while you are away; we would generally recommend having at least £2 million in medical coverage if you are travelling to Europe, and at least £5 million for other destinations worldwide,” says Mr Winter.

When is the best time to purchase travel insurance in relation to booking a trip?

“I recommend purchasing your travel insurance as soon as you know the dates for your trip so that cancellation cover starts straight away,” advises Mr Winter.

What are some red flags to watch out for when comparing travel insurance policies?

“It can sometimes be confusing to know what you do and don’t need to declare on your travel insurance, especially when it comes to past medical conditions, or ongoing diagnoses,” says Mr Winter.

What your insurance does and does not cover can vary significantly depending on how comprehensive your policy is, so it’s important to choose a policy that is right for you.

“Most policies will exclude cover for pre-existing medical conditions, unless they have been declared to the insurer, this highlights the importance of declaring your medical history accurately.” explains Mr Winter.

“Some providers can decline cover altogether to people with certain medical conditions or over a certain age, meaning people over 65 or those living with medical conditions can find it difficult to find cover.”

Are more expensive policies always better, or can you get solid coverage for less?

“The cost of travel insurance can vary significantly, and it is typically based on your age and medical history, as well as the duration and destination of your trip,” notes Mr Winter. “Travel insurance can be more expensive depending on what you need covering.

“For example, protection for dangerous sports and hazardous activities, like skiing and scuba diving, can increase the price of your travel insurance. Choosing a more affordable plan is fine if you aren’t taking part in these activities while you are away.”