Holidaymakers waste millions of pounds each year buying travel insurance from travel agents rather than shopping for more competitively priced and comprehensive cover. This week the Treasury announced that it was considering bringing travel insurance bought through travel agents under the umbrella of the Financial Services Authority, bringing it into line with cover bought via brokers.   ■Do I need travel insurance?

The old E111 form, for which you had to apply annually at a Post Office and entitled UK citizens to free or cheap medical treatment in all European Union countries, has been replaced by a standardised European Health Insurance Card (Ehic). It is credit card-sized and obtainable free via the Department of Health website (www.dh.gov.uk), by phone on 0845 606 2030, or, as before, from Post Offices, although you can’t get one on the spot.

Covering the cost of treatment abroad is very expensive, especially in the US, so buying travel insurance with good quality cover should be a priority.  ■Where should I buy insurance?

Resist buying it from your travel agent or tour operator where prices can be up to 75 per cent more expensive. Approach an insurer directly or try a broker such as www.moneysupermarket.co.uk.

Some holiday operators will try to insist you take out their insurance as a condition of taking the holiday but if you already have insurance and can show the documents you should be able to avoid paying the extra fee.  ■What about cover offered by credit card providers?

This usually just insures you if you die or are injured while travelling. Some credit cards include full or partial family travel insurance, although these usually incur a fee. Other cards, such as Abbey’s, recover costs for delayed flights and lost luggage. Lloyds TSB offers basic travel insurance on its Select, Gold and Platinum cards and American Express includes full family insurance on its Platinum card for a fee. ■Can I get insurance if I have a medical condition?

Some insurers will refuse cover for people who have had heart attacks, suffer from epilepsy or cancer, or who are terminally ill. If you have problems you could try a support group for those with similar conditions. Groups often keep lists of insurers who will cover your condition. There are also a number of specialist medical insurers.

 ■What if I am an older person?

Most travel insurers set an upper age limit of 70 but prices can start to vary greatly from the age of 65. According to Moneysupermarket, premiums jump by more than 100 per cent between the ages of 65 and 66 and travellers entering their 70s face an additional premium rise. Specialist insurers such as Age Concern and Saga offer insurance for older people at reasonable, if not always the cheapest, rates.  ■Dangerous sports cover?

Holidaymakers are becoming more adventurous and insurance providers say the range of activities being undertaken is expanding. Even ordinary beach breaks can provide opportunities for water sports, such as scuba diving, jet skiing and snorkelling. Some sporting activities are covered by standard travel insurance policies on a one-off basis but if the main purpose of your holiday is to participate in dangerous sports you will need to obtain extra cover at a higher price.  ■What about ski cover?

Even within policies specifically tailored for skiing, some will exclude other snow-related activities such as tobogganing, ice skating, para-skiing or dog-sledding. It can also be difficult to define whether something is on or off-piste skiing for ski policies. Some insurers say you must stay on groomed snow while others allow you to stray a little way off. This is not much help if you stray off marked runs in a white-out or fall off a drag lift into deep snow.  ■Anything else to be aware of?

Another thing you may not be covered for is injuries sustained while under the influence of alcohol. Insure & Go is better than most insurers in that it will cover you for accidents sustained while drinking socially, although it will not pay compensation for accidents after drinking heavily. If you have a standard policy, such as Club Direct’s insurance, you may want to lay off the après ski.  ■Which cover should I take out?

That depends which sport you want to try. Some policies, such as Club Direct, include bungee jumping but not riding a motorbike. Some allow you to ski on black runs but do not cover you for beginner snowboarding.

Others may define activities such as martial arts as dangerous sports but cover whitewater rafting. But it is not easy to work out which policy will cover you for which activity.

There is a wide diversity of cover for what is termed hazardous that is either included or excluded from one policy to the next.  ■How much is it likely to cost for standard cover?

It will vary according to your age and the type of holiday you are going for. But one of the cheapest policies for a 30-year-old male taking out worldwide cover is from Columbus Direct at £44 for annual cover.

For a 60-year-old man taking out annual European cover with Direct Travel Insurance, one of the cheapest providers, the premium will be £29 for the year.