One of the reasons to always buy travel insurance is to cover emergencies. Most vacations and business trips will be trouble-free, but you should never assume that will be the case. Insurance might seem like a waste of money when you don't use it, but if you have an emergency and no insurance, you'll sure wish you had spent the money. It's not that much compared to what an emergency could cost you …

Consulates and embassies are there to help if you get in trouble while abroad, but their powers are limited. They can issue emergency travel documents and help in various other ways, but they do not provide financial assistance. They definitely will not cover the cost of repatriation, should you need to be transferred home by air ambulance. It's just not worth taking the risk, so get insurance.

In some countries, hospitals will insist on seeing proof of insurance or your credit card before they treat you. Medical bills can be huge, as many visitors to the US have discovered. If you're going to be skiing or doing other potentially dangerous sports, make sure that your policy covers this type of activity.

You also need coverage for your possessions. Lost baggage will be covered by the airline, but only to a certain point, and that may not cover the full cost of your belongings. Ensure that you buy an adequate policy for your needs; if you have an expensive camera, for example, you should choose a policy that covers its value.

Something might pop up to ruin your vacation before it's even started, and if you have to cancel closer to your departure date you won't get any money back. This is where insurance comes in. You might have a family crisis that needs your attention, or be unable to go because of illness.

Even if you have reciprocal medical coverage in other countries - for example, European Citizens are entitled to a European Health Insurance Card for travel in other EU countries - this won't cover everything. So it's important to have a comprehensive travel insurance policy that does cover all your potential needs.

Finally, having travel insurance means that you will have peace of mind. You'll know that you'll be covered whatever happens. Don't be one of those people who wishes too late that they hadn't tried to save money by not taking out insurance.

You might think, once you get back without any mishaps, that you wouldn't have needed travel insurance. But it's better to have a policy that you don't use than to not have one when you need it. If something does happen, you'll be glad that you had the sense to take out a policy. Have you ever had a vacation that went wrong?