Independent travel agency Travelcare has slashed the cost of its holiday insurance by more than a third to bring it in line with prices offered to the public directly by insurance companies.

The move follows a report by the Consumers' Association earlier this year which accused travel agents of overcharging for insurance.

A Travelcare spokesman said: 'Travel agents' rates are now clearly seen as uncompetitive.'

The price cuts mean that European holiday cover for 14 nights with Travelcare now costs £25, down from £38.95.

Travelcare has criticised other travel agents for tempting holidaymakers with free insurance, which it said was likely to be a basic policy with limits to its cover.

The company said the public should put 'cover before cost' when buying insurance.