As the first glimmers of a summer start to shine through many start thinking about the summer and where to escape to this year, unfortunately for many this year the credit crunch will have an effect on just how far many will be able to get away. This means that many may be thinking about holidaying in the UK but experts are still urging UK holiday makers not overlook travel cover for their holiday. This comes after a recent report has shown a boom in the number of holidays being booked in UK cities and resorts yet many insurance providers are saying that they have yet to see an increase in cover to correspond with the boom, one price comparison site said that only 2 per cent of inquires are to do with customers looking for UK cover.

"The number of UK insurance policies sold is dwarfed by that of European and worldwide policies, and in our experience fewer people shop around for UK cover," said Steve Williams, head of travel insurance at a comparison website. "But travel insurance should be seen as a vital part of any holiday you are planning, whether it be in the UK or further afield."

It is not deemed as essential, as Brits holidaying in the UK will automatically receive free health care but what travel insurance will cover are any cancelations that may happen with any holidaymakers without cover possibly losing out on any deposits or facing the possibility of incurring cancelation charges. In this time of economic downturn the British holiday industry is still at risk and there is a very real possibility that a holiday company, resort or hotel may close down.

Hoburne Holiday Parks which has seven holiday parks in the UK has seen its bookings rise by more than a third compared with this time last year. The company offers its customers an optional holiday cancellation scheme for its family lodges, which can cost more than £1,000 during peak times. Under the scheme, the company will waive its contractual rights if customers are forced to cancel a holiday.

Its chairman, Rosie Burry, said: "A holiday booking is a contract and, like any other contract, it is sensible to protect oneself in case things go wrong. Our cancellation scheme doesn't attempt to replicate all the features of a travel insurance policy, and we do make this absolutely clear in the brochure. We also make it clear that any customer who wants insurance cover should approach a broker authorised by the FSA."

The increase in holiday bookings in the UK will go a little way to improve the economy and a long way to improving the fortunes of the British holiday industry, but whilst may resort across the UK are seeing a rise in bookings there are no sure things in the travel industry so covering yourself with a travel insurance policy is a smart thing to do. However Steve Williams highlights the importance that holidaymakers should be careful to avoid doubling up on insurance they already have.