Best value travel insurance

Best value travel insurance

Insurers are always telling us we would be mad to head off on holiday without a travel insurance policy packed away in our suitcase, but if you are heading to Europe, some would argue it is not always essential.

Do I need cover?

Younger people without kids, particularly those going to bigger cities rather than the back of beyond, are often happy to take their chances. After all, there is help on hand if the worst happens. The European Health Insurance Card (EHIC), which replaced the old E111 form, gives you reduced-cost or free medical treatment in EU countries as well as in Iceland, Liechtenstein, Norway and Switzerland, so make sure you take one with you. Apply at www.ehic.org.uk. Many home insurance policies have clauses that already cover personal belongings (eg your suitcase) outside the home. Also check your private medical insurance policy, if you have one, as it may well cover the cost of treatment incurred abroad.

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Don't forget that if you have a "packaged" current account (one where you pay a monthly fee), travel insurance is often one of the benefits you receive.

For families with children, and older people, travel insurance is a must. It's probably most important for cancellation cover and paying the substantial costs of repatriation if you fall ill or have an accident and need to be flown home or taken to a specialist hospital.

Earlier this month, Direct Line said it was advising "all holidaymakers to protect themselves by making sure they are insured against any losses in case the worst happens". (But they would say that, wouldn't they?) It warned that paying for medical care abroad has become even more expensive, and says the EHIC may not cover all that could be required, such as long-term treatment. It's fair to say that swine flu will have made more people nervous about travelling without insurance.

Single trip v annual cover

Annual multi-trip policies always make sense if you go away more than once a year – though don't pay for cover you don't need. If you don't ski or snowboard, you don't need winter sports cover.

It is usually pretty quick and easy to key your details into one of the price comparison websites and get details of dozens of policies. But be careful when it comes to the very cheapest policies – many will have a limit on baggage claims of £500 or even less. Guardian Money checked Moneysupermarket.com to find out how much annual European cover would cost for a family of four (see table). The two cheapest providers were TopDog Insurance and Insureme4, which both came in at just under £33 – though one of the Insureme4 options only offered a total of £200 cover for personal possessions, with a £65 excess. In some cases, that wouldn't pay for a pair of designer sunglasses, let alone everything else in your suitcase.