Many holiday makers who buy cheap travel insurance may not be as fully covered as they would hope to be.

With Brits get ready for their Easter break away many of them will have purchased cheap holiday insurance. But Brian Brown, travel expert at market researcher Defacto, warned against buying the very cheapest contract you can find, arguing: "If you pay £5 for a policy, don't be surprised when you receive a standard of service which matches that price. The insurer will not pay any claim unless it absolutely has to. Certainly they won't entertain anything there is a question mark about."

Financial Ombudsman Walter Merricks warns customers to read carefully the cover provided by either very cheap contracts or those given away with a banking, credit card or holiday package. He said: "There can be a mismatch between expectations and confusion on both sides about the exact nature of cover."

If you plan to take more than one holiday this year, then you can save money with an annual policy which insures you for as many trips as you wish to take. Similarly, families can cut the cost with a family contract.

Primarily you need travel insurance to protect you if you get ill or have an accident and need medical treatment or to be brought home in an emergency.