Could you afford to pay out thousands of pounds in hospital bills? At a time when we are all trying to save money, it is not worth risking getting injured or having something stolen for the sake of a travel insurance policy.

Depending on the type of holiday you choose will go a long way to deciding the level of cover you need. Your average beach holiday along the golden beaches of the South of France or scintillating sites of Spain, you will need a basic package that covers you from the usual claims such as baggage loss.

Then there are the more adventurous holidays that many people seem to be choosing such as skiing, mountain climbing or kayaking. These types of holidays require more comprehensive travel insurance as you need to be covered against all possibilities. When travelling on adventure holidays be prepared to pay more for your insurance as insurers need to cover their backs in case they have to pay out.

Many tourists travel abroad and do not experience any problems but there are a percentage of holidaymakers that have a holiday from hell. Just ask those who booked their holidays with XL, only to find that upon arrival at the airport awaiting their flight home that the company had gone bust.

With difficult economic time come increased problems. XL are one of nearly 30 travel companies who have filed for bankruptcy in the last 6 months and this number could increase if things get worse.

All tourists should ensure they have the necessary cover before embarking on a holiday. There are a wide range of options for customers with low cost airlines flying daily to many European destinations. With a variety of policies available check your options and the small print to make sure your holiday goes by without a hitch.