Churchill Insurance finds people paying too much for travel cover

Churchill Insurance has found that holidaymakers can pay £120 too much for travel insurance by buying from agents.

The insurer points out that currently one in three Britons buys the insurance cover for their trips abroad from travel agents, instead of shopping around or checking existing entitlements.

The total savings that could be made by shopping around add up to £1.2 billion across the industry, Churchill Insurance has found.

As well as making potential savings, holidaymakers should be especially aware of agent bought policies, as insurance products are due to become regulated on January 14, however policies bought through travel agents will not fall under this new regulation.

"This time of year is a bargain hunter's paradise and travellers will be able to make huge savings on their holidays. Shoppers should not stop at the cost of a holiday as they could make significant savings on their insurance too, by avoiding travel agents' fees and booking direct," said Paul Whymark, head of travel insurance at Churchill Insurance.

Mr Whymark added that anyone planning to make more than one trip abroad over the coming year could save even more by taking out an annual policy, rather than relying on trip-by-trip cover.

However, travel insurance may not need to be taken out separately at all.

Several credit card providers, and even some current accounts, offer free travel insurance on holidays and consumers are advised to check to see if they are covered in advance.