Aviva estimates that 83% of UK adults are planning a holiday this year, either overseas or in the UK. Its latest “How We Live” report found that more than 40% were planning to spend more than last year on holidays. It said the average budget for those heading overseas was more than £4,000 while a staycation was in excess of £2,000. Aviva said 11% of travellers chose never to buy insurance when travelling abroad.

Carolyn Scott, head of home and travel underwriting at Aviva, said: “People’s passion for travel is clear. Whether travelling abroad or staying in the UK, people are keen to take a break and it’s heartening to see so many people plan to get away this year.

“Our research indicates roughly an extra two million people in the UK take out travel insurance now compared with five years ago. While it is great to discover more people are opting to take out travel insurance when they book a trip than historically, the number who continue to forgo this remains worryingly high. Travelling without insurance can leave people not knowing how to get assistance, and potentially facing significant medical bills in the event of illness or injury while overseas.

“Even before a trip starts, our figures show the average cost of cancelling a holiday is more than £900 if something unforeseen happens in the lead up. To ensure travellers are properly protected, insurance should be purchased as soon as a trip is booked.”