It is believed that the rising cost of living is behind the decision of many people to make the move.
Chris Rolland, head of American Express Insurance Services, said: "If it is a case of people cutting back on travel insurance in order to afford their holidays then perhaps they should think twice before booking.
"Should something happen, the current economic market means that the last thing Brits need now is an unexpected bill."
A new report by Sainsbury's recently claimed that students should check their parents' home insurance policies before heading off to university.
The retailer's study found that a third of standard products cap cover for those living away from home at £3,750 or less.
Click here to run an energy price comparison, and see if you could be paying less for your gas and electricity.