The recent collapse of travel firms like XL has highlighted the need for holiday-makers to have travel insurance when going abroad.

Thousands of people were left stranded in foreign countries after the firm went bust because, contrary to popular advice, they did not have adequate travel insurance or ATOL protection. Travellers have been advised the same principle applies this Christmas, but for slightly different reasons.

For those sampling the shopping in New York, travelling to the German Christmas markets or jetting off to Paris, travel insurance is essential. Whether you are going for a week or a weekend, not being properly covered could leave you with problems if any gifts you buy are stolen, lost or damaged as you will not be able to recover any of the costs.

As well as purchasing insurance in the first place, consumers have been warned to check the level of protection their insurer provides to make sure their property is covered and, if their travel provider runs into difficulties, that they will be covered.