It is estimated that half of Britons don't bother with travel insurance when they take short breaks and some of us don't even take up travel insurance when we holiday abroad. With such an overall lax attitude to travel cover as a nation, it's important to review the reasons why having the right travel insurance can make or break your trip away.

The flexibility of travel insurance means you can opt for a 'Cancellation Only' policy at first that can then be upgraded before your trip, so you don't lose your deposit and pay any cancellation fees should you need to cancel for any reason. For example, it is often the case that deals on cheap flights can be cancelled at short notice, leaving you without any compensation for your holiday costs.

You will also be covered in the event of personal robbery, wherever it may occur. Often we take precious items on holiday with us, things that we don't want to be without. In the event of theft, you may never see the return of your missing jewellery or sentimental trinket, but if you are adequately insured, at least you know you will be compensated for its worth.

Robbery can happen in any country on a long or short break and whether it constitutes hotel robbery or luggage losses, you will be losing out unless you have a suitable travel insurance package.

Taking up travel insurance means you can relax whilst you are away, knowing that in the event of any medical emergency you are not liable for medical costs. For example, receiving even minor treatment at any U.S hospital can run into hundreds of pounds.

Travel insurance should cover you in the event of any accident whether it serious enough to need a hospital stay or not - although it's always worth checking the fine print to make sure the destination you are travelling to is covered.

Financial losses are the last thing you need when on holiday and in the worst case scenario of having to seek repatriation, your costs will be covered which otherwise could place a serious financial strain on you or your family.

You should also consider taking out a separate travel insurance policy even if you have travel cover through your credit card. Many cards offer this cover as an incentive to get you to sign up but often only provide the absolute basic cover.

Often this type of cover only caters for certain age groups, for a limited period of time and is only applicable if the card was used to purchase the holiday (which often means surcharges apply to your account).

Rather than rely on a basic cover it is advisable to read the fine print, and to take out a package designed specifically for your trip, particularly if you are planning an extreme sports holiday or trip to a country with poor medical facilities.