It is at times like these - when young John breaks his leg skiing, Mary gets sun stroke or your spouse's luggage goes missing - that most of us begin to wonder what our travel insurance actually covers. Of course, the best time to ask those questions is before you leave on holiday.

Several insurance companies have designed travel insurance policies to suit families travelling abroad several times a year. For an additional fee, they may cover those who enjoy "hazardous activities" like skiing, rock-climbing, and white-water rafting. Each policy differs in the activities covered and hazardous ones are usually limited to a shorter time period.

Multi-trip travel insurance policies allow families, or individuals, to go abroad for a set period per trip (usually a maximum of 30 or 60 days) and cover a total of 180 days or more abroad a year. Each policy differs, so it is necessary to examine the specifics in relation to your family's needs.

The level of cover you choose is important. As a guideline, seek a minimum of £1 million-£2 million (€1,269,738-€2,539,476) - for medical and personal liability cover; £15,000£25,000 personal accident; cancellation and curtailment cover of up to £3,000; legal expenses £5,000; and baggage loss £1,500£2,000. Most insurers will not cover the excess, or first part of a claim, so it is important to determine which items are subject to excess. The typical excess level for travel insurance is £25.

Coyle Hamilton independent insurance broker is the latest entrant to the multi-trip market with its Annual Family Travel Insurance Policy. This product allows a maximum of 60 days per trip and 180 days' coverage per year. Premiums are £80 for an individual and £100 for a family. Sons and daughters from 18-23 years are covered for an additional £25. Premium reductions, to £70/£90 respectively, are available if the insured has household insurance with "all-risks cover" from any provider. This price does not include baggage. Active holiday-seekers may opt to include 17 days' of winter-sports cover at £20 for an individual and £25 for a family.

Hibernian's Travelchoice Multi-trip policy covers trips abroad for up to 31 days including ski holiday cover for 14 days each year. Premiums for an individual are £100, £125 for individual and partner and £25 for each additional child. Optional extras include winter sports, golf and business cover for £10 each. Existing Hibernian household policy holders receive a 10 per cent discount on the premium. Excluding baggage from insurance cover can make a difference in premium prices with some policies. Royal & Sun Alliance offers this reduction in its Annual Travel Insurance for Individuals and Families. Premiums, including baggage, are £122.40 for an individual, £137.70 for a married couple and £153 for a married couple and family. Excluding baggage, the premiums decrease to £91.80, £103.28 and £114.75 respectively. The maximum stay per trip is 30 days, with 180 days abroad covered during each insurance period.

Accident & General's Fairsure Multi-trip policy allows coverage for an unlimited number of days abroad each year, but 30 days is the maximum per trip - 21 days of winter sports coverage is included in the premium of £145 for an individual and £250 for a couple or family. Families travelling abroad for longer than two months should look for an annual, rather than multi-trip, insurance policy that covers one trip rather than several. Accident & General offer this product for a £230 premium but the policy only covers medical and baggage.

USIT has the best choice of extended period travel insurance for those 35 and under. Age allowance exceptions are possible in some cases.

Although insurers tend to be cheapest because they sell the product directly, they are not the only ones offering travel policies in Ireland.

The choices have increased considerably since the Package Holiday and Travel Trade Act 1995 forbade compulsory purchase of travel insurance. Today, there are many travel service providers: insurance companies, financial institutions (credit cards); travel agents; credit unions; professional associations and health insurers. Competition means consumers who shop around are well rewarded.

Although the 1995 Act forced many travel agents to stop requiring customers to purchase their policies, many agents still need proof of insurance similar to or better than the policy they offer.

If you decide to purchase from a travel agent, ask them to waive the administration fee for processing the policy.

Do not assume that insurance offered by your credit card provides an adequate level of coverage. However, your home insurance policy may have an annual travel insurance provision or the provider may offer it for a small additional fee.

Employers may also offer reduced premium travel insurance to their employees. Check the coverage level for all of these potential providers before buying insurance elsewhere.

The travel insurance you choose depends on the needs of your family. If you only travel once a year, an annual or multi-trip package may be too expensive.