These days there are so many hidden costs when travelling. With ever increasing costs, the prices of travelling abroad are not as transparent as they initially seem. Airlines are starting to charge customers for handling baggage on flights more frequently, leading to an increase in Brits travelling with hand luggage only to save money.

The logic behind travel insurance is basic. Getting it will take a few mouse clicks and about five minutes of your time. It's that simple. And by getting the right policy, you will potentially save yourself years worth of medical bills and extras costs if something goes wrong.

The answer is simple - as soon as you book and pay for your holiday!

Unfortunately, if you leave purchasing your travel insurance policy to the last minute you're not getting the full benefit of the policy. The reason is that a travel insurance policy contains different elements of cover that are appropriate for protecting against unexpected events before you go abroad and then for whist you're away. Providing that cancellation cover is included in your policy, you'll be protected from the minute you purchase your policy.

The EHIC, formerly known as the E111 can be used within the EU and entitles the cardholder to the same free or reduced state health care that is available to local residents. This is based on a reciprocal agreement between the UK's NHS and the European Union nations (which is why people visiting the UK are entitled to NHS treatment).

Confusing as it may seem, but “cancellation” in travel insurance terms doesn’t relate to cancelled flights. It actually refers to situations that cause YOU to cancel your trip, of which a flight being cancelled isn’t one.