Argos, the retailer best known for its catalogue, has introduced a travel insurance product in the Republic, undercutting competitors by up to 50 per cent.

The annual worldwide cover rate offered by Argos is £55.12 for an individual and £78.75 for a couple. There is no limit on the number of days cover abroad per year.

Similar policies from other insurers range in price from £75.00 to £122.40 for an individual and £95.23 to £155.42 for a couple.

Argos travel insurance is provided by AIG Europe (Ireland) and is administered by Galway based Inter Group Intermediary Services. The Argos rate for family annual worldwide policies - £94.50 - is only matched by Getcover.com. The website's cover includes up to 10 children, while the Argos policy is limited to two children.

The cost of similar annual family policies from other Irish insurers and intermediaries ranges from £100 to £153.00. All premiums include a 2 per cent Government levy.

Argos does not rank among the cheapest for single trip policies in Europe and the US, however the level of cover offered is higher than most other providers.

Two weeks' European cover from Argos costs £19.68, while the cheapest provider is Ryanair at £9.00, albeit for a much lower level of cover. Travel agents are the most expensive in this category, typically charging £28 for holiday cover in Europe.

The new travel insurance from Argos is part of Argos Travel Services, which offers airport hotel bookings and car hire services to customers in the Republic.

The new offering from Argos is no cause for cheer for older travellers who are excluded from travel cover by many providers. Travellers over the age of 65 are charged double for an Argos policy, while many providers have age limits or surcharges in place for this group.