Sickness, accidents and natural disasters can spoil your holiday. Travel insurance can help you to at least avoid the financial consequences by covering medical expenses and other losses that can occur.

Travel insurance can usually be arranged at the time of booking--from travel insurance
companies, travel agents or directly from suppliers such as cruise lines or tour operators--to cover the exact duration of your trip or you can purchase a more extensive, continuous insurance. It's worth noting that travel agents are usually the most expensive way to get insurance. For the biggest savings, you should buy the insurance online.

The two broad types of coverage available are Annual Multi-Trip cover and Single Trip cover. Generally speaking, if you make two or less trips a year then Single Trip cover is the right choice, otherwise Annual Multi-Trip cover is more economical.

Family insurance cover is cheaper than individual insurance and the same applies for a regionally restricted policy, which is cheaper than a policy without restrictions. The number of differing policies is almost infinite--worldwide, ski and winter sports, backpacker, students, certain age groups, etc.--so you should compare the offers carefully.

Also be sure to read the policy's small print to save yourself from negative surprises, For example, if you pick family insurance check the limit on the number of people it covers. You should also check the policy's age limit for adults and children who'll be travelling.