It all sounds great. And, in all probability it will go like a dream and your holiday will be everything that you hoped for. But snags, small and large, can be just a heartbeat away. And if something does go wrong it’s best to have the peace of mind that you are well covered by sound insurance.

Some insurance policies might seem like an expensive addendum to what is already a hefty cost. But the price of not being properly covered is likely to be much, much worse.

I’ve only once been in a hospital abroad, thankfully for me only accompanying someone, but I can vouch that it is a scary experience. On that occasion, following a bizarre accident involving a kilt, a high kerb and a lot of blood, the staff took pity on us and treatment was offered free, the only price being the stares and laughter of almost every doctor and nurse on duty at the time.

But healthcare can be expensive abroad – and the price can be much, much higher if you need to be transported back to the UK.

The first tick on your checklist should be the European Health Insurance Card (EHIC for short), the replacement for the old E111 form. You can get the card easily by filling out a quick online form (including children, partners etc) and it should be delivered in seven days or so.

The EHIC is a first step but a valuable one. Some countries do apply restrictions but as long as you do your research before you go the card offers some peace of mind.

Of course it is better to have the additional security of your own health insurance policy. Age and existing medical conditions are two factors that will affect this. So try and shop around: price will be a factor but don’t be tempted to scrimp on a policy only to find out that you won’t be covered if disaster strikes.

If you are mugged, robbed or simply lose your money and cards then an adequate insurance policy can reduce the stress of a horrible experience. It’s amazing how many of us Brits spend so much on a holiday, fill expensive suitcases with expensive clothes and stuff wallets and handbags with cash and credit cards only to find that if any, or all, of this stuff goes missing we have very little protection.

It’s also a good idea to keep in mind what sort of activities your holiday is going to consist of. If you are, say, mountain biking or golfing then you can find an insurance package that will protect both you and your equipment.

Finally, for the self drive holiday goer, there is the question of vehicle insurance. Your existing insurance provider may offer insurance for driving abroad. If that doesn’t suit you then there are plenty of other companies who can provide an insurance policy that matches your requirements.

Things like the age of your car might affect cover and costs. And bear in mind other things: if you’re planning a day trip into another country then make sure your insurance won’t be affected.

So the moral of the insurance tale is quite a simple one: it’s better to be safe than sorry. Plan your holiday and plan the insurance that will suit you best. The irony is that you’ll probably never need to call on your insurance. But the peace of mind is worth it.

Guest Article by Tom Hall

Most people are forking out more than they need to, according to a new online survey.

The study claimed that UK passengers spend a total of £670 million a year on travel insurance but could save up to £275 million by comparing prices.

The average annual premium is now £103.19 for travel in Europe, £133.84 for worldwide cover and £141.28 for insurance that includes travel to the US.

If you’re paying anything like that, you may want to shop around. Apparently, some 25 per cent of the most competitive insurers are charging far less.

Guest Article by Jeremy Skidmore