New research reveals that the fears of the Civil Aviation Authority (CAA) may be justified and that too many Brits are taking financial protection for granted when travelling overseas.

Last week, the CAA warned that holidaymakers may be taking big risks by booking so-called ‘DIY holidays’ without sufficient travel insurance.

The latest study by research firm Defaqto suggests that many British travellers may be doing exactly that.

“Too many people are now travelling abroad with inadequate cover,” explained Brian Brown, author of the Defaqto report.

He advised British holidaymakers to track down the best travel insurance deal on the basis of quality, suggesting that price should be a secondary concern.

The need to secure comprehensive travel insurance cover before heading off on holiday is made more acute when consumers book flights, accommodation and itineraries independently, according to the CAA.

“Our research shows that although millions of holidaymakers will build DIY breaks this summer, they don’t always realise the risks,” said David Clover, spokesman for the licensing scheme ATOL, which works in association with the CAA.

One eventuality travellers rarely consider is the possibility that their airline or hotel provider could go bankrupt. A survey published last week by the CAA revealed that a third of British travellers incorrectly believe standard travel insurance tacked on to a booking will protect them in such an eventuality.

Contributed by J.Bevan