Planning your next holiday? Travel insurance is a must, but don't get ripped off. How much you pay depends as much on where you get it from, as how much of a risk you are.

Fifty per cent of people buy insurance from the organisation where they booked their holiday. But travel agents and tour operators charge way over the odds, according to the latest Holiday Which? report. For example, cover for a two-week holiday in Europe with Going Places costs £40.65, whereas TravelPlan Direct is four times cheaper, charging only £10 to cover a two-week holiday in Europe. "Be prepared to shop around for holiday insurance which can deliver real savings," says Patricia Yates, editor of Holiday Which?

Specialist travel insurance providers consistently offer better deals than those offered by the high street travel agents. Independent travel agents offer slightly better value policies than the high street chains, but the survey says that these are charging double those listed in our best buy table on page 35.

And don't rely on free travel insurance, often offered as a perk by credit card companies. Many of the cards only offer travel accident insurance, which is not as comprehensive as proper travel insurance. A recent Jobs and Money survey on gold credit and debit cards' multi-trip travel insurance found the cards only offer 31 days' cover, whereas standalone insurance policies cover you for up to 60 days. Charge cards can also offer better deals.

On average, people take four months planning their holiday and less than 30 minutes finding their travel insurance. And a quarter of people who buy travel insurance do not take their policy away on holiday with them, while the majority of people who buy travel insurance are unsure of how to make a claim if an incident should arise.

The Post Office's Travel Insurance Survey found that 20% of British holiday makers do not take out travel insurance. Of those who buy insurance, 42% admit they never read the small print.

There are various ways to reduce the cost of your insurance. Opting out of baggage and belongings cover can save you up to 30%. This is worth considering if you have an an all risks homes content insurance policy which covers your possessions outside the home.

Additionally, if you are travelling in Europe, you are entitled to free or cheaper emergency medical treatment if you carry an E111 form. However, they do not replace travel insurance and can be cumbersome to use.