Despite the fact that the cost of travel insurance is falling, one in seven travellers still head abroad without cover.

According to a recent report from Defaqto most travel insurance policies have never been cheaper than today. It says the average premium for an individual taking a a seven day trip to Europe is £15.70 (2007: £16.68) and £37.24 for a family (2007: £39.70). An individual travelling to the USA for 17 days will pay an average of  £45.99 (2007: 41.86) and a family £45.99 (£49.47). The average cost of annual European travel insurance for an individual is £49.67 (2007: £53,24), £77.14 for a couple (2007: £81.55) and £88.95 for a family (2007: £92.44).

The only area where premiums have increased in the past year was for annual travel cover to the USA. For a couple this has risen to £109.19 (2007: £107.75) and £124.74 for a family (2007: £121.90). However premiums are still lower than they were in 2003, even before inflation is taken into account.

"Competition in the travel insurance market is having a very significant effect on the price of travel cover", says report author Brian Brown.  "The availability of a huge number of policies, many of them online, has driven many insurers to lower their premiums. Single trip cover to Europe can now be bought for as little as £6.00 for a week's holiday. There really should be no excuse for people to travel uninsured"

But Defaqto warns travellers should make sure they understand what they are buying, as all policies offer different levels of cover.