Travel agents, department stores or online specialists are just some of the places you can pick up a travel insurace premiums for the price of a new pair of sunglasses, if not for free with another product. However, this doesn't mean you shouldn't consider your travel insurance options carefully. Not all policies are the same and you could be left with a hefty bill if you aren't covered for a problem while you're away.

The following guide explains what your options are when choosing a travel insurance policy and the essentials that every policy should include. If your insurance was free, check the small print. The chances are it won't be as comprehensive as you think, and it might be wiser to pay for a proper premium for your trip.

The basics

The Foreign & Commonwealth Office recommends that every travel insurance policy should at least cover the following:

Medical and health cover for an injury or sudden illness abroad - Which?, the consumers association, suggests £1 million worth of cover for European trips, and £2 million for the rest of the world, including the US.

24 hour emergency service and assistance.

Personal liability cover of up to £1 million in case you're sued for casuing injury or damaging property.

Lost and stolen possessions cover

Cancellation and curtailment (cutting short your trip) cover - about £3,000 to £5,000 according to Which?

European travel

If you are staying in Europe, remember to fill out a European Health Insurance Card, which replaced the E111 form. It entitles you to free or cheaper healthcare in the European country that you're visiting. However, you should not consider the card as a low-cost alternative to travel insurance.

Singe trip or annual cover

Explore Money

• Property & Mortgages

• Savings

• Borrowing

• Investment

• Funds

• Insurance

• Consumer Affairs

• Tax

• Pensions

• Broadband

Times Recommends

• How to find a good tradesman
• How to join the internet vigilantes
• Five ways the banks fleece us