The Scottish holiday season is under way, and every day more than 1,300 Britons suffer travel disasters ranging from last-minute cancellation to medical emergencies. The ones with the right insurance receive payouts worth £1 million, while those with inadequate or no cover, are left to fend for themselves.

According to insurers’ trade body the ABI, last year 494,000 travel policyholders received a total of £365 million in compensation. This included £128 million to 160,000 individuals and families who had to cancel their holiday before it even began.

A further 87,000 people claimed £16 million to replace lost or stolen cash and baggage, but the largest number of claims related to health issues. British insurers paid out over £196 million to more than 166,000 travellers for medical treatment and repatriation.

Mark Shepherd, the ABI’s manager for general insurance, said: “Medical treatment in foreign countries can cost tens of thousands, which is why it’s essential to have a policy that will cover you, should you need it.”

The average claim for medical expenses was more than £1,200, while for cancellation it was £800. And many people faced losing much more. Insurer Aviva received more than 60 claims for cancelled trips worth over £10,000 last year, and the highest was for £26,000. Every day,

Yet, with annual travel cover costing an average of just £33, many people go away without a policy or put off buying one until the last minute, leaving themselves dangerously exposed.

Aviva says just a quarter of would-be holidaymakers take out insurance as soon as they book their trip, while a third wait until the month before they are due to go, and 10 per cent don’t bother with insurance at all.

Adam Beckett, director of products at Aviva’s UK general insurance business, said: “Many holidaymakers assume travel insurance just protects them while they’re on holiday, and they might not take out cover until just before they jet off for sunnier climes.

“ Taking out travel insurance at the same time as booking the holiday will avoid any unnecessary and added stress if holidaymakers aren’t able to travel.”

However, that doesn’t mean you should simply accept the policy offered by your holiday provider or go straight to your own bank. The cost of cover varies dramatically, and if you don’t shop around you could end up overpaying.

If you haven’t got insurance yet, the simplest way to arrange it is via a price comparison website. It should take just a few minutes to input your details and receive a wide range of quotes.

If you go abroad more than once a year, it may work out cheaper to buy an annual multi-trip policy than several single trip ones.

Many people holidaying on the Continent wrongly assume it is enough to have a European Health Insurance Card. According to Gocompare.com, half of UK adults believe it entitles them to free emergency medical care anywhere in Europe, and a further 5 per cent think it is valid worldwide.

The EHIC covers EU member states plus Switzerland, Iceland, Norway and Liechtenstein, but only entitles holders to limited state care, and this varies considerably between countries. It doesn’t include private clinics – the only option on some islands or in smaller resorts – or repatriation to the UK.

As a result, someone without additional insurance could be left with a substantial bill. This could range from £500 to treat a twisted ankle in Greece, or £20,000 for an air ambulance to the UK, to £80,000 or more following a heart attack in the US.

It is important to get good value when buying insurance, but don’t choose purely on price. If you don’t have sufficient cover, you might as well not have bothered.

A study of over 700 policies by Comparethemarket.com found nearly half only cover cancellation of travel or accommodation worth less than £3,000, even though a family holiday can cost considerably more.

Half insure valuables only up to £250, and just one in ten protect items worth £500 or more, despite many people travelling with laptops, iPads, expensive cameras and mobile phones. One in ten policies provide no cover for missed flights, and a third won’t pay out for missed UK connections.

Unfortunately, many people don’t realise how little protection they are getting because there is so much small print to wade through. Comparethemarket.com says travel policy terms and conditions run to an average of 26,000 words, the most of any insurance.

For peace of mind, choose a policy that provides at least £1 million of medical cover – some offer £5 million or more as standard – plus a minimum of £3,000 for cancellation, £1,500 for lost or damaged baggage and £250 of cash cover.

And, however boring it might be, check the small print before you travel. If you plan to try pursuits such as scuba diving or bungee jumping, you will need additional sports cover, and if you claim for an accident that occurred while you were under the influence of alcohol or drugs, expect it to be rejected.

CASE STUDY

Graeme Thewliss bought a single trip travel policy from Tesco Bank before setting off for France to watch Iceland play in Euro 2016.

The university housing officer, who lives in Glasgow, explained: “I’m a massive football fan and one of my best friends lives in Iceland, although he’s from Northern Ireland.

“I flew to Marseilles to join him and some Icelanders for an Icelandic independence day party. Then we went to watch them play Hungary and to see a couple of other games.” The fun continued this week in the famous win over England.

Even though he had a European Health Insurance Card, Graeme was keen to have the protection of an insurance policy. He said: “The EHIC just offers basic care and I wanted to have as much cover as possible.

“Because I’m a Clubcard holder, the Tesco policy was only £15, which I was delighted about.”