There are many good reasons for travellers to consider purchasing travel insurance when planning a trip ? as we've all frustratingly experienced, baggage can easily get lost, and medical costs abroad, especially outwith the EU, can be excessive to non-natives. But how do you make sure you're not paying too much for your policy?

Becoming ill on holiday is more common than you'd thing ? two fifths of all UK holidaymakers get sick for two or more days of their holiday, on average. ?Delhi belly? is the most common complaint ? surprise surprise! So health cover is another must. The level of your medical cover can vary depending on where you're travelling to. Within the EU you can now apply for a European Health Insurance Card (EHIC). If you require medical treatment on your trip, present this card and any costs will be charged to the UK government.

The added cost of flying you home for treatment is an extra consideration to take if you're holidaying in a country with a poor healthcare system, or indeed anywhere outwith the European Union. Repatriation/evacuation insurance basically means that you're covered for the cost of being flown back to the UK for medical treatment at home rather than risk further illness by being treated in your destination country.

Your own needs may vary from this guide, but as a general rule, these are the levels of cover as recommended by most travel insurance and financial advice companies. We've tried to address why you may need to vary these cover amounts.

Personal liability - ?1 million. The world is now an increasingly libellous place, and should you accidentally cause an injury to a third party while on your travels, they could turn around and sue you.

Cancellation - ?3000. ?3000 is a rough-guide amount only. Obviously if you've booked some supercheap flights for ?80 it may not be worth your while paying for cancellation cover at all.