The credit crunch is a worrying issue and could turn even the sweetest holiday getaway into a sour trip.  Therefore, as a result of panic 51% of British sun seekers told researchers that they do not intend to purchase travel insurance in the coming year in order to save money.

However, insurers have warned holiday goers that cutting out their travel policy may not be the best idea, and they could infact be financially worse off without it. Without travel insurance, travellers will not be protected against lost luggage, cancellations or medical bills.

Suzie Fenn reminded consumers that travel insurance was vital if they wanted a safe and peaceful holiday: “Understandably, people are looking to make savings on their holidays this year, given the economic climate. However, with more than £60 million paid out in 2007 in insurance claims for everything from medical emergencies to damaged baggage, scrimping on this essential travel cost really isn’t worth the risk.”