Eleven million UK holidaymakers could be paying up to twice as much as they should for travel insurance – wasting up to £546m a year, states a report released by Churchill Insurance.

The study reveals that 30% of travellers are paying up to double the price of direct insurance by purchasing cover from travel agents. The report not only shows that these products are more expensive but many agents only sell cover in two bandings of 1-9 days and 10+ days forcing people to buy surplus cover.

The report produced in conjunction with the Centre of Economics and Business Research (CEBR) marks the launch of Churchill’s new, flexible travel insurance which sells cover by the day. Virtually no other provider offers this tailor-made product, allowing travellers to purchase exactly the number of days’ of cover required.

Churchill’s Head of Travel Insurance Julie Owens said: “Our offer is very simple and really challenges travel agents to change the way that they sell insurance. With our product, you save money by buying only what you need. If you travel for four days, you pay for four days. With many other outlets you have to pay for clumsy blocks of cover.”

Despite the extra costs, buying insurance through a travel agent or as part of a package is still the most popular way to purchase. Although independently booked holidays have risen by 67% since 1997, 19 million of us still opt for the familiarity of a package holiday.

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