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The Foreign and Commonwealth Office (FCO) has stressed that Brits should not consider cutting corners when it comes to travel insurance, regardless of how eager they are to save money on their holidays.

Recent research by the government office found that two thirds of Brits are planning to reduce the amount they spend on holidays this year, raising concerns that travel insurance could be one of the areas where holidaymakers cut back.

A study carried out by the FCO between April 2006 and March 2007 showed the importance of travel insurance, finding that 8,304 Britons needed assistance in the US and 6,710 passports were lost in Spain.

Foreign Office minister Meg Munn said: 'This report highlights what can go wrong on holiday.

'It is a reminder to all that taking out comprehensive travel insurance is a crucial part of your holiday planning and not something that should be sacrificed in order to save a few pounds.'

Ms Munn added that one of the most useful things holidaymakers can do is carry out some research on the laws, customs and health requirements of their travel destination before setting off.

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