Holiday makers are putting themselves at financial risk, with almost 40 per cent failing to purchase travel insurance until a week before their holiday, according to online travel insurance company Travel Insurance Direct (TID).

Spokesman for TID Graham Kingaby warned of an unnecessary risk by travelers not prioritizing travel insurance, who often secure a bargain purchasing airfares up to a year in advance, with insurance bought at a much later date.

“As we’ve seen in recent weeks there are many unforeseen issues, from airline strikes to floods, which can jeopardise your holiday plans at the last minute.  But if disaster strikes before your holiday and you haven’t bought travel insurance, you’ll lose your cash as well as your vacation,” Mr Kingaby said.

In the case of the Icelandic volcano eruption in April 2010, which led to an estimated 300,000 flight cancellations, travelers holding already purchased insurance were covered.  However, travel insurance exclusions on cancellation and delay came into effect the day after the eruption, therefore anyone planning to travel in the week after the volcano erupted who didn’t already have travel insurance would not have been covered Mr Kingaby explained.

“Travel insurance isn’t a last minute bargain – you get the best benefit by purchasing early, as soon as you book your flights. Otherwise you are leaving yourself very exposed.”

“If you buy your policy when you buy your airfare, not only is that investment covered, but so too are all your subsequent holiday purchases like accommodation and car hire,” he said.