According to the research, when it comes to tightening belts, Brits are choosing to cut back on travel insurance, despite the fact it could see them fork out thousands if something goes wrong.

The survey also revealed that 48 per cent of Brits intend to cut back on key insurance products as they find their money stretched further. One in four Brits will be travelling without travel insurance this year according to the research, leaving themselves exposed and vulnerable.

Travel company XL went bust last week leaving thousands of Brits stranded and faced with bills for thousands of pounds, highlighting the need for travel insurance, nevertheless this research shows 24 per cent of Brits remain un-phased.

Commenting on the research, head of American Express Insurance Services Chris Rolland said: “As the cost of living rises and there is less money left over at the end of each month, our research shows that one in four Brits are struggling to meet the cost of holiday insurance. If it is a case of people cutting back on travel insurance in order to afford their holidays then perhaps they should think twice before booking.

“Should something happen, the current economic market means that the last thing Brits need now is an unexpected bill.”

If travelling more than once in a year, Mr Rolland recommended taking out an annual travel insurance policy instead in order to save money.

© Fair Investment Company Ltd