What's wrong with the policies offered by travel agents? Agents may charge between two and three times as much as other insurers for cover that is often not as comprehensive. Travel agents earn meaty commissions by getting you to sign up for cover when you pay for your holiday. It used to be a nifty marketing ploy for travel firms to offer discounts on the package if you took out their insurance policy. This so-called "conditional" selling is now illegal but the convenience of taking the cover offered by your travel agent remains persuasive as do the salesmen. Some operators may refuse to book a holiday without insurance policy details. But you can still get round that‹there is nothing to stop you signing a form stating that you are making your own insurance arrangements. The cover on offer is highly unlikely to be the best deal you can get, so it is a good idea to shop around. The normal holiday discount is 15% or to put it another way a £150 saving on a £1,000 family break. But a family of four will pay nearly as much for insurance with leading travel agents such as Lunn Poly, Going Places and Thomas Cook.

If you plan on driving abroad, check with your car insurer about just how much protection your existing policy provides. At the very least you will likely need a green card, which is proof in Europe that you are insured. You should also consider an international roadside assistance policy. A travel insurance policy will not cover you when driving abroad. If necessary you will have to arrange extra cover through your existing car insurer.