Holiday-makers should shop around for their travel insurance, the Labour Party consumer affairs spokeswoman, Dr Mary Upton, said yesterday.
A survey by her party this week showed a standard travel insurance package varied from u£19 to u£29, based on an adult going to the Canaries for a week.
"Holiday-makers are going to extremes in a bid to secure bargain package deals for the summer. Sleep-outs and hours of queuing might mean a good reduction on the brochure price for holidays, but when the extras are added on, the final price can be more than 10 per cent higher," she said.
The cost of holiday insurance was taking the good out of the "summer sales" in travel agents, she added. However, shopping around could save money.
"In our research we identified that travel agents were quoting between u £27 and u £29 for an adult going abroad for one week. However, when we contacted insurance companies directly, we found that they were charging up to u£10 less."
She said many holiday-makers automatically purchased travel insurance from the agent who sold them the holiday but it made more sense to shop around.
The research also suggested holiday-makers who travelled extensively throughout the year could make significant savings if they bought yearly insurance.
"One insurance company offers a yearly rate of £105 for a couple, which covers them for 180 days of travel. If the same couple took two holidays in a year and purchased insurance from their travel agent, they would pay out in the region of £116 in total."
She also warned holiday-makers to read the small print.
"Many are under the impression that they have coverage for all kinds of leisure activities such as boating. However, if they are in the unfortunate position of having an accident, they may be disappointed to learn that they are not covered very comprehensively."