More than five million people in Britain this year plan to cut back on an insurance policy, with 22 per cent considering giving up travel insurance.

That is according to provider LV=, which has published new statistics suggesting that nearly two-thirds (69 per cent) of those holidaying within the UK this year will do so without taking out any form of holiday insurance for their break.

The figures, which were released alongside research indicating that Brits will save £3 billion this year by swapping overseas holidays for trips around the UK, revealed that Scotland, Wales and Cornwall are Britain's most popular destinations.

Also in the list of holiday hotspots were Devon, Yorkshire, the Lake District, East Anglia, Somerset and the Norfolk Broads.

"It is important people remember that even though they are staying in this country, travel insurance is still important," said Emma Holyer, a spokesperson for LV=.

Last month, ABTA, the Travel Association, claimed that British tourism could enjoy a good year in 2009, thanks to an influx of foreign and domestic tourists because of the weak pound.