In a time of increasing costs, many of us are trying to cut corners where we can. For some, that means opting not to take travel insurance when we go on holiday.

Many feel that they will be fine travelling to the European Union as they have a European Health Insurance Card. Although this card will ensure you treatment in hospitals in certain country's it is by no means a replacement for travel insurance.

With the card, only certain injuries or illnesses will be treated and should you need to be airlifted home or to another hospital, this may not be covered. Of course, it does not cover you for one of the main risks which travellers face, namely delayed flights and having bags lost or stolen.

Quite apart from travelling to the EU without travel insurance, increasing numbers of people are travelling to the United States without insurance, a country where health care is notoriously expensive.

Cutting corners on travel insurance is simply not an option when travelling to a country as far away as the United States and with such an expensive health care system. Getting treatment without insurance in the United States can cost in the millions.

If you are flying from the United Kingdom to the United States and can afford a flight out there, it is worth your while to tack on at the very least a basic health insurance package.

New figures have revealed that Canadians are taking similar risks when travelling to the United States and opting to do without insurance.

According to a new study of Canadians travelling habits, a huge 37 per cent of Canadians never purchase travel insurance when taking a holiday in America.

Much like Britons with the European Health Insurance Card, many Canadians believe that they are covered by government healthcare plans when they travel to the United States. Unfortunately this is simply not the case.

A Canadian entering a United States hospital with a broken arm and a broken wrist could face costs of almost £20,000, and only £200 of that would be paid for by a Canadian Government Healthcare Insurance Plan.

Stan Seggie, president and CEO of the travel insurance division of RBC Insurance says “as fuel costs rise and the economy slows, travellers may be exposed to increased travel costs and capacity cuts; so the need to protect their investment is even greater now. Comprehensive travel insurance including trip interruption, trip cancellation and travel emergency medical insurance will help protect them.”

He continued, pointing out that"When Canadians plan for a summer trip, their main focus is on having fun, not whether they may need to cancel the trip at the last minute or get sick while away. However, before they leave, Canadians need to ask themselves if they could afford to pay out thousands in hospital bills or lose the cost of their vacation. If they can't, they need to consider purchasing travel insurance."