With the cost of fuel pushing up the price of our summer holidays, many are determined to enjoy a break even if it means taking the cheaper option such as short haul instead of long haul and self catering rather than inclusive. Some tour operators have been adding on surcharges of 10% to the cost of a holiday, which could increase costs for a family by hundreds of pounds. In an attempt to beat holiday inflation, the temptation is to cut corners in their areas to save a quid or two. In your mission to obtain the best travel insurance, beware of cutting corners.

While you might see immediate savings, it could wreck your holiday and, at worst, damage your wealth permanently. You can save on travel money by shopping around for commission-free deals, but don’t even think about makings savings on insurance by simply cutting it out. Before you take off, you should also make sure that your home, your possessions, your holiday, your health and your car are all well protected. Around 15% of us have no idea how much our possessions are worth, according to Legal & General, so that means that many of us don’t have our worldly possessions adequately insured. Many don’t even have contents insurance. You could sit down and add up the value of items in each room or your insurer will help you work out the true value of your possessions.

Travel insurance is a must have for holiday makers no matter where you are going - even if it’s just to Bognor. Travel insurance covers you for the cancellation of the holiday, transport delays, medical treatment and loss or theft of personal possessions. If you take several breaks a year you’ll find that an annual policy is cheaper than single trip cover. Avoid buying from a travel agent or tour operator - all they are interested in is the commission. They don’t always ask the right health questions and you could find that you are not properly insured.

You will need to tell your travel insurer about any existing medical conditions you have. Unfortunately, existing conditions are often not covered and you should be aware of this. Are you the sporty type? It’s hardly a holiday read but you should look at the small print on your policy. Many insurers don’t cover extreme sports such as bungee jumping and swimming with sharks. Don’t just assume you are covered. Always check out the terms on your policy documents covering hazardous sports before you sign up for anything. You might have to pay an additional premium but it will be worth it. Just in case, always take your policy documents and the helpline number with you. If you are going to a EU country get a European Health Insurance Card. It isn’t a replacement for travel insurance but it could give you free or reduced medical treatment.