Don't be caught out when booking last minute deals

Whether you've had your overseas vacation booked for months or are planning on getting a good deal at the last minute, Defaqto offers you some top tips to help make your trip run smoothly.

Top tip 1 - Travel insurance

Don't forget to buy travel insurance, even if you're going to Europe. Many people mistakenly believe that they will be fully covered with a European Health Insurance Card (EHIC). While this guarantees medical treatment it will not pay for costs of returning home or value of lost holiday if you are ill.

If you are booking at the last minute, look for a travel policy which doesn't include cancellation cover, as this will usually save you a little bit of the premium.

Whatever you do, make sure you read your travel insurance policy, particularly the bit about what to do if you need to make a claim, as often you will need reports from the local police or your travel representative.

Brian Brown, head of Insight at Defaqto says: "You should take your travel insurance policy with you so you know who to contact in an emergency. And always keep copies of receipts as you will need them if you need to make a claim."

Top tip 2 - EHIC cards

Although travel insurance pays for medical treatment abroad, an EHIC guarantees medical treatment in EU countries and may help you get faster treatment.

"However, they will take at least a week to get if you order on the Internet," warns Brown, "and 2-3 weeks if you order them from the Post Office.

"You should also remember that EHIC cards only apply in European Union countries, so destinations like Turkey are not covered."

Top tip 3 - Travel money

If you are taking holiday cash be aware that travel insurance policies will only pay out a maximum amount if your purse or wallet is lost or stolen. So only take as much cash as you need, up to the limit your travel insurance allows. And keep the receipt for the money conversion - you will need it if you ever need to claim for lost or stolen money.

Top tip 4 - Travellers cheques

Many people these days rely on cash and credit cards for holidays, and don't use travellers' cheques. But cash soon runs out, and credit cards can be lost or stop working. Consider taking some travellers cheques as a backup in case your cash and cards run out.

Top tip 5 - Using your card abroad

Using your credit or debit cards abroad can be an expensive way of spending. Most card companies charge 2.75% to 3% in credit handling fees every time you use your card.

David Black, Principal consultant - banking at Defaqto, suggests: "Consider taking out a card which doesn't charge extra for overseas use. Cards offered by Abbey, Nationwide, The Post Office and Thomas Cook do not have overseas use charges."

He adds: "If you are going on holiday for a long period, such as a gap-year or extended trip remember to make arrangements to pay the credit card bill while you are away."

Top tip 6 - Credit card fraud

Banks and credit card companies are tightening up on credit card fraud and you might find your card being stopped while you are away, especially if you use it to make small purchases. If you are going abroad and expect to rely on your credit card as the primary source of funds, phone your bank before you travel and tell them when and where you will be going.

For more useful information on travel insurance and credit cards visit defaqto.com