Partly because of this, 38% - more than one in three - fail to take out insurance before heading away on holidays.

The European Health Insurance Card (EHIC) also encourages a false sense of security, the study found, with one in five young people believing it acts as a full insurance policy.

FCO Minister Mark Simmonds warned travellers must do more to protect themselves abroad. He reiterated: "Although we will do what we can to support people who encounter difficulties while abroad, the FCO cannot cover medical bills or fly them home.

"We urge all travellers, particularly young people, to think about the effect not having comprehensive insurance can have on both themselves and their families. Don't leave it to others to pick up the pieces if things go wrong."

He was supported by Victoria Bacon of ABTA, who cited examples of the dangers of foregoing cover.

She said: "Every year we see tragic cases of young people who have had an accident or incident while on holiday overseas that requires very serious medical help. In extreme cases people have had to sell their house to cover the costs, or desperately try and get funds from their friend and family. Buying adequate travel insurance should be the top of every holidaymaker's list."

Source: www.yourmoney.com

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