When you’ve just booked a holiday, purchasing travel insurance may be the last thing on your mind. It’s easy to assume that nothing will go wrong, but what if something does? Each year, 1 in 5 travellers go abroad without travel insurance, unaware of the potential risks and what it could cost them if the unthinkable happened.

Here are 10 examples that illustrate the importance of having travel insurance:

1.Medical problems
Around 50% of claims are in relation to medical expenses*. If you need medical care whilst you’re away, travel insurance should not only pay for your medical bills, but also give you cash benefit for the time you’re an inpatient in hospital. Extra transport and accommodation for you, and, if necessary, for another person to stay with you, should also be included. For Europe an EHIC may seem adequate, but this will only cover your medical bills, leaving you to foot the bill for everything else. Medical costs are at their highest in the USA, and the UK has no reciprocal health agreement (like the EHIC) with the Americans. A serious medical problem could cost a huge amount of money: a recent claim for pneumonia topped £60,000*, and if you had to get taken back to the UK in a medical emergency, costs could spiral up past £40,000 for that alone.

2.Delayed baggage
Unfortunately, it is not uncommon for airlines to mislay passengers’ luggage. Most travel insurance policies cover ‘Delayed baggage’, so you can buy essential items to tide you over until you’re reunited with your belongings.

3.Lost/stolen/damaged baggage
A massive 1 in 4 Brits have lost their luggage and belongings on holiday*. Taking out a comprehensive travel insurance policy would mean you’ll have cover your luggage, bags and valuables if they’re lost beyond return, stolen, damaged or destroyed.

4.Cancelling due to unforeseen circumstances
If you have travel insurance and have to cancel or cut short your trip for unforeseen circumstances such as a seriously ill relative or bereavement, you can claim back the costs for unused travel tickets, accommodation and other pre-paid holiday costs such as car hire. Cancellation cover will only be in place from when you buy insurance, which is why it’s best to book insurance as soon as you’ve paid for the holiday. Research shows only 1 in 20 travellers do this, meaning that a shocking 95% of travellers aren’t insured for cancellation after booking their holiday.

5.Personal liability
If you accidently injure someone, or damage someone else’s property, travel insurance should cover the costs that you’re legally liable for. So you aren’t left with a huge bill for something that was just an unforeseen accident.

6.English-speaking help
In an emergency, unnecessary worry would be the last thing you need. Most travel insurance providers have a 24-hour emergency phone number, which gives immediate help if you have a medical emergency.

7.Replacing your passport
If you lose your passport while you’re away, travel insurance would cover the cost of obtaining a temporary one (which could cost more than you’d think) so you can get home. Some travel insurance policies also cover for further costs to replace it on your return.

8.Emergency dental treatment
The cost of emergency dentistry treatment can sometimes be as painful as the dental problem itself! Travel insurance policies could cover you as much as £200 if you have to visit a dentist to relieve sudden dental pain whilst you’re away.

9.Missed departure
Most travel insurance policies have a ‘Missed departure’ cover section. This covers costs for extra accommodation/transport that you need in order to continue with your trip if you miss your flight from your departure point because your train is delayed or if your car breaks down.

10.Delayed departure
If you’re delayed at your departure point for more than 12 hours, a travel insurance policy should give you some sort of compensation. This could go towards buying a meal, or, if necessary, putting yourself up in a hotel for the night. Some travel insurance policies may, after a 12 hour delay, cover you to cancel (or ‘abandon’) your trip altogether.

* Information taken from Direct Travel Insurance Claims Department.