When it didn't arrive I had to drive to the consulate in Brisbane to sort it out

When it didn't arrive I had to drive to the consulate in Brisbane to sort it out. I spent the next three days trying to get a new passport and visa It was a real pain. The visa cost £60, the new passport cost £150, and petrol and accommodation came to £50 ­ which I am in the process of claiming back from the insurer."Travel insurance definitely wasn't a high priority for me before I set off, and I did leave it to the last minute. Sometimes it feels like the big companies try to scare you into thinking you have to have insurance. But I was grateful I'd arranged cover."Quick and easy online searches for all yourinsurance needs Gap-year students planning a once-in-a-lifetime adventure in distant places are unlikely to have insurance cover high on their list of priorities.

But for the 33,000 or so student backpackers expected to head overseas this year, failure to buy adequate insurance could turn the experience into the holiday from hell.Lost tickets, stolen passports, flight cancellations, accidents and illness are just some of the pitfalls awaiting the unwary traveller. A lack of insurance in any of these situations can cause a lot more than just sleepless nights.The good news is that getting fully covered, even for exotic travel destinations and oddball adventure sports, is not as hard as it once was. The increasing demand for holidays that take in extreme activities, such as bungee jumping and paragliding, means that insurers are beginning to offer policies that can be altered to suit the needs of even the most adventurous traveller.Direct Line, Direct Travel, Columbus and Primary Travel are just some of the companies offering gap-year-oriented cover for those bitten by the travel bug. Prices for one year's worldwide travel insurance range from as little as £188 to as much as £364, depending on the level of cover needed. But as Helen Dwyer, director of travel insurance specialists Primary Direct, explains, a greater range of policies does not always bring an increase in the quality of cover. Insurance still needs to be chosen with care."Insurance companies are beginning to cater for the backpacker," she says, "but there are still many travel insurance policies on the market that can do more harm than good if the backpacker is faced with an emergency. Having too little cover, or too much in all the wrong places, can be as disastrous as not having any protection, so it is important that the traveller knows what to look for in a policy."Ms Dwyer says the biggest priority is medical and repatriation insurance, with the Association of British Insurers recommending a minimum level of £2m-worth of cover."If the worst comes to the worst and you need to fly home after an accident or an illness, you could be facing a £10,000 air-ambulance bill," she points out."If you have to scrimp on any part of the policy, make sure it is not the medical cover."Another priority for the student traveller on a tight budget, Ms Dwyer says, is to avoid insurance policies that have high levels of baggage cover."As a backpacker you will want to keep weight down to a minimum, so you want cover that will reflect this.

Don't take anything too valuable with you, such as jewellery or expensive cameras."In any case, she warns, most policies limit the amount you can claim on a single item to between £300 and £400.One further pitfall when choosing a policy is failing to make sure you have insurance for all the activities you plan to do while on holiday. This is especially important for those with a penchant for dangerous sports and exotic locations.Mark Shaw, partner at Direct Travel Insurance, has seen the problem occur on many occasions. "It sounds like an obvious piece of advice," he says, "but you'd be staggered how few people check that their policy will properly cover them for all the activities they want to do." But if you come across something you want to try while you're on your travels, it's not too late to get insurance. "If people email or call us from abroad," Mr Shaw says, "we will put cover in place."The upside is that companies such as Direct Travel are now more likely to offer cover for extreme pastimes and out-of-the-way places. Even sports once considered to be insurance no-go areas have had their risk ratings lowered in recent years.

"Insurers tend to dislike activities such as skydiving, where you've only got one chance to get it wrong," Mr Shaw says. "But with bungee jumping, insurers are taking a more relaxed attitude as long as it's properly organised." Gap-year insurance guide * Read the small print – especially if you intend to take part in "extreme" sports such as bungee jumping or parachuting. Unless these are specifically mentioned in the contract, you may find yourself without cover if you take part in them.* Be aware that some policies have a limit on the amount you can claim back on individual items that are lost or stolen. It is advisable to leave behind anything worth more than that limit.* Contact your insurance company if you alter your travel plans. One in 10 student travellers ends up staying abroad longer than planned – and will often be left without insurance cover as a result.* It may be more cost-effective to do without expensive baggage cover if all you're taking with you are jeans and T-shirts. As a backpacker you should expect to travel with the minimum of valuables.* Try to get your parents to pay. Their concern for your safety is likely to be much greater than your own and they may be willing to shell out for a higher level of cover than you could afford.* Consider liability insurance, especially if you are heading for litigation hot spots such as the United States The ABI recommends a minimum of £1m..

As Friends Provident shares make their début on the stock market tomorrow, the flotation of the friendly society is the latest in a long line of demutualisations which have taken place in the past five years. Moneynetlife insurancesearchAs Friends Provident shares make their d?t on the stock market tomorrow, the flotation of the friendly society is the latest in a long line of demutualisations which have taken place in the past five years. This year has been particularly busy, with Scottish Life and Scottish Provident also deciding to demutualise after members of both insurers voted overwhelmingly in favour of a flotation. Scottish Life members will receive their windfalls towards the end of September; about 700,000 members with a with-profits policy will receive an average windfall of £4,000. Scottish Provident's 440,000 members will have to wait until January, when they will share about £1.6bn in windfalls. But as members of the three societies celebrate, they might want to temper their jollity – because when it comes to their premiums, they might find there is little to look forward to. According to research from European insurance trade body ACME, the financial benefits to customers of mutual and co-operative insurance companies far outweighs their shareholder-owned equivalents.