Rather than taking out single-trip insurance – which was previously the most commonly chosen type of travel insurance – more people are now taking several overseas trips each year and are benefiting from year-long cover schemes.

Spokesperson for Halifax, David Bruce, said: “More and more people are taking more than the traditional one summer holiday a year so it makes more sense to have annual cover.”

Depending on the company and level of cover chosen, annual travel insurance can include medical expenses, personal liability, legal fees, cancellation cover and compensation for lost belongings.

Mr Bruce offered advice to holidaymakers with travel insurance policies. “One of the things we always try to remind people to do in the event of a theft is to get a crime reference number, otherwise the claim cannot be validated,” he said.

Whether customers opt for one-off or annual deals, Halifax emphasises the importance of travel insurance and that it should be considered a vital part of holiday planning. Unexpected events can lead to extremely high costs as well as physical and emotional distress, and holidaymakers should ensure they are covered in the event of potential hazards.

Find out more about travel insurance and compare annual travel insurance deals.