Holiday makers travelling abroad in Europe this summer are shunning the traditional travel insurance for the EHIC health insurance card.

A survey conducted by Saga Insurance found that 8% of those travelling to Europe would not be taking out extra travel insurance. The card, free to citizens in participating European countries guarantees holders free medical treatment if they fall ill within the European Union.

However, holiday makers have been warned that they could be missing out on essential cover if they do not have an adequate travel insurance policy.

Travel insurance does not just cover health but can also cover lost baggage, cancelled flights and repatriation costs. The latter is not covered by the EHIC card and can cost well over £20,000.

Andrew Goodsell, chief executive of the Saga Group, said: "A good travel insurance policy will ensure you are not only covered for medical expenses, but will also provide repatriation back to the UK and cancellation cover should your holiday be cut short."