Consumers getting a good deal on a package holiday could find themselves stung by expensive insurance, according to Moneysupermarket.com.

Increasing online competition has lead to cheaper flights and holiday deals, meaning travel agents have had to drive down their prices. However, the price comparison site has warned that agents may attempt to recoup these losses through expensive insurance and other ‘bolt-on’ products.

Richard Mason, director of insurance at moneysupermarket.com, recommended going online to compare policies before purchasing anything. “As a quick rule of thumb, holidaymakers should look to pay around £10 for a single trip to Europe, around £20 for a single trip worldwide and around double that for the equivalent annual cover,” he said. “But don’t let the price be the only determining factor.”

Mason also urged holidaymakers to get insurance for any special activities they might be participating in, such as extreme sports, and for any items that could cost extra, such as an expensive camera. Reading the small print carefully before making a choice should ensure appropriate cover, he added.