Reasons to have travel insurance

Many people think they are already covered for all eventualities that might occur on holiday.

Luggage losses or damages covered by their home insurance policy, driving abroad covered by the car insurance, accidents covered by life insurance. But this is very rarely the case - these policies will often not cover losses abroad.

And while it's worth getting the new European Health Insurance Card (EHIC), which replaced the old E111 and provides UK residents with free or reduced price healthcare in EU countries, this is not always enough - as it only covers illness. If you have accident on a foreign rock climbing holiday or kite-surfing excursion abroad, the EHIC will be of little financial use, as it will not cover the cost of emergency rescue or repatriation. It is also, of course, useless outside the EU.

With medical expenses in some countries costing thousands of pounds, travel insurance means a small slip abroad does not have to cost an arm and a leg, if you trip on the pavement.

It is a fallacy a quiet trip - with no base jumping included - does not need travel insurance. Most claims come from minor incidents - the kind of trips, falls and accidents that are as common in the UK as on holiday.

Travel insurance also provides cover that could pay for damages you cause to other's property while abroad - such as skiing equipment. It also provides financial compensation for delays to travel or piste closures - eventualities which can deem a holiday pointless. Likewise, if you need to catch an emergency flight home a good travel insurance policy should ensure you don't have to pick up the cost.