More than 100,000 Americans have lost their passports so far this year, according to the US State Department.

And well over 300,000 passport holders registered their documents either missing or stolen in 2006, with official figures showing a steady rise in the number of reported instances.

Fortunately, many vacationers are wising up to the benefits of a travel insurance policy that not only covers the cost of replacing a lost passport, but can also help stranded travelers track down the nearest consulate and other essential services when overseas.

The nation’s largest travel insurance firm, AIG Travel Guard, reports that growing numbers of American travelers are wisely investing in travel insurance. A good policy will typically set you back no more than seven per cent of the cost of your holiday.

Forthcoming programs to make travel insurance even more worthwhile include free insurance for children under the age of 18, if they are traveling with insured adults, an AIG spokesperson told Tribune Media.

Vice president of TravelexTravel Insurance, Sally Dunlop, told the news provider that cover was essential “in the height of the travel season” which is when the insurer receives passport claims “on a daily basis”.

Using Squaremouth’s comparison tools, vacationers can compare deals from AIG and Travelex with other travel insurance providers, or track down the right policy at the best price.

Squaremouth is the only provider to offer a zero complaint guarantee.

Contributed by J.Bevan