The one thing you shouldn't travel without

If you're set to jet off on a break this Easter, neglecting to take a travel insurance policy with you could be a very costly mistake.

With Easter just around the corner, many Brits are likely to be looking forward to the upcoming four day weekend (hurrah!)

If you're lucky, perhaps you're even thinking of heading off for a welcome break somewhere warm.

In that case, you're probably more worried about how all your clothes will fit into your suitcase than about ensuring you have the right travel insurance policy.

In fact, it's even possible you've taken the decision to travel insurance-free this year. According to research by Liverpool Victoria, over 5 million Brits are set to ditch different types of insurance policies in 2009, with 22% saying they will cut their travel cover.

A false economy
Going without travel insurance in the short term might seem like a smart way to save money - especially at a time when many of us are suffering the effects of the recession.

However, travelling without insurance could put you at serious financial risk.

The right insurance could make a crucial difference to how you'd cope if things went wrong on your holiday. On the other hand, not having any cover could see you out of pocket by far more than the cost of your policy, should disaster strike.

Unexpected events
In my opinion, travel insurance is among the most important things to remember when preparing for a holiday. That's because a travel insurance policy offers you protection in case unexpected events occur.

No one wants to think that their flight might be cancelled or contemplate the loss of their luggage as they book their perfect getaway - but these things happen to thousands of people every year, and can quickly turn a dream holiday into a nightmare.

Got it covered?
The right travel insurance policy will act as a buffer to help cushion the blow of a wide range of catastrophes, any of which could happen while you're supposed to be relaxing.

Travel insurance might include cover for lost or stolen possessions, personal accident cover and cover for delayed or cancelled flights.

A good policy will also provide you with the option to cut short or even cancel your trip without losing your money, should you need to do so.

In addition, most travel insurance policies include personal liability cover, which will protect you in the event you are sued for causing injury or damage to property while abroad.

However, in my opinion the most important protection offered by travel insurance is cover for medical emergencies.

Accident, illness and injury
It might sound dramatic, but experiencing health problems while on holiday could put you on the fast track to financial ruin.

Ensuring that you have a European Health Insurance Card (EHIC) will provide you with some protection if you are travelling within the European Union (EU) or Switzerland. Carrying an EHIC should entitle you to emergency health care in these countries, which may be free or provided at a reduced cost depending on where you are and what has happened to you. However, the EHIC is no substitute for travel insurance as it does not cover all eventualities or apply in every part of the world.

Even basic medical care overseas can cost thousands of pounds - and with no travel insurance, you could be left to foot the bill yourself if something happened to you.

What's more, should you need to be specially flown back to the UK, this process (known as 'repatriation') could add tens of thousands of pounds to your total medical bill. According to figures supplied to the Foreign and Commonwealth Office (FCO) by FirstAssist, repatriation to the UK from the east coast of the USA could cost an incredible £45,000.

Furthermore, the FCO's website states clearly: "Remember: the British Embassy or High Commission will not pay for this."

It's a stark warning that, when it comes to accidents, illness and injury abroad, travel insurance can be invaluable.

But what about the cost?
Compared with the cost of dealing with disaster yourself, a good travel insurance policy is likely to look very affordable.

Using BeatThatQuote.com's travel insurance comparison tool, I've found a multi-trip travel insurance policy that will provide me and my partner with cover for our upcoming break in France, as well as the main holiday we plan to take later in the year - and all for a very reasonable £46*.

Shopping around is the key to obtaining travel insurance that won't break the bank, even in these stretched financial times. Comparing quotes using an online tool is the quickest and easiest way to do so.

Things to remember
When you take out any sort of insurance policy, it's always important to read the small print and ensure you know exactly what will - and won't - be covered.

It's also worth being aware that your age and any pre-existing medical conditions you may have are likely to affect the cost of your travel insurance.

Finally, remember that if you plan to undertake certain activities while on holiday, you may need extra travel insurance cover. Sports such as skiing, snowboarding and bungee jumping are unlikely to be covered by a standard travel insurance policy.

Whether your perfect break involves jumping off cliffs for fun or lounging by the pool with a long cocktail, there will be a travel insurance deal that suits your needs. There's no reason for a policy that offers peace of mind to break the bank - but the right one could help ensure you come home from your holiday smiling.

* Based on an annual multi-trip policy for a couple in their mid-twenties with no pre-existing medical conditions, providing standard cover and starting on 4 May 2009. Comparison conducted 30 March 2009.