Your guide to holiday insurance

Insurance is something which could save you a fortune if things go wrong on holiday.

If the recent run of horrendous weather has you dreaming of summer days on a sunny beach, you’re not alone. It’s thought that 22.8 million Britons plan to go on an overseas holiday in 2014, with just under 21 million of us planning a holiday here in the UK.

Even if you are not going away until the summer, time spent planning your break now could help you save cash.

Insurance is something that could save you a fortune if things go wrong. But don’t wait until you are packing the suitcase to get it sorted.

If you have to cancel the holiday before you have arranged insurance, you’ll lose your hard-earned money. To be super safe, get travel insurance before you make your booking. That way you are covered immediately.

Don’t just buy it from the travel agent. Shop around and consider a multi-trip policy if you’ll be going away more than once.

Even if you have insurance, a European Health Insurance Card (EHIC) can be handy. This entitles you to free state medical care in most European countries. Even if you already have one, check it’s still valid as they expire after five years.

If you need to apply for one or just to renew it, do it through the official site at ehic.org.uk as there are lots of others which will charge you for the service.

Credit cards usually charge extra for spending overseas, but some don’t. They include Halifax Clarity, Post Office, the Capital One Classic Extra, Saga and Nationwide.

Apply early and you’ll have the card ready even if you book a last-minute holiday.

If you need to take some foreign currency as well, travelmoneymax.com will show you the best rates, but remember these might get better (or indeed worse) before you travel.

Don’t assume the web is the cheapest. High Street travel agents can still come up trumps for seven, 10 or 14 days in traditional resorts.

Hotel star ratings can be misleading. A hotel that has five stars because of facilities such as a conference hall you won’t use may be no more comfortable than 2-star hotels with cracking rooms.

If you’re on a budget and don’t mind basic facilities, consider using a hostel. If you’ve not been in one for a few years, you could be pleasantly surprised.

The Scottish Youth Hostel Association, syha.org.uk, is a good starting point.

If you’re thinking about heading further afield, find the cheapest via hostelbookers.com or hostelworld.com If you want a break but aren’t really fussed where or when, check out which flights are available on sites such as skyscanner.net, kayak.co.uk or travelsupermarket.com.