By nature of their adventurous holidays, backpackers are different from normal holidaymakers and need a more tailor made travel-insurance policy. For example, one which covers the individual with a good quality 24-hour medical assistance helpline.

The research also found that the average gap-year traveler neglects to take any travel insurance at all and this is worrying considering that the average gap-year traveler's backpack contains £450 of personal possessions such as digital cameras, MP3 players and mobile phones, according to AA Travel. Gapyear.com statistics show that approximately 25% of young travelers go abroad without an adequate policy or any insurance at all.

It goes without saying that gap-year travelers often travel further afield than other holidaymakers and can often visit more secluded parts of the world. In such areas, it can be far more costly to resolve a situation where the traveler becomes ill or suffers an accident. Furthermore if the gap-year student takes part in adventurous activities, like bungee jumping or whitewater rafting, then they should make sure that such activities are covered in the terms of their insurance.

Other research has showed another worrying trend in that gap-year students literally leave it to the last minute to choose their insurance policy, without thinking through which policy would best fit their circumstances. With the wealth of information about various policies available, such short sightedness can lead to real trouble. For example, travel insurance firm ACE discovered that almost 50% of its policyholders took out insurance less than a week before traveling.

Travellers are often oblivious of occasions where insurance might be necessary. For example, insurance cover is not only required for hospital stays and emergency airlifts, but also for more frequent events, like flight cancellations and lost luggage.