Travel Insurance Options

There are four main types of travel insurance:

1. Trip Cancellation Insurance - reimburses you if the operation you booked with goes out of business. It also provides coverage if you have to cancel due to illness, family death or some other calamity enumerated in the policy. Some of these policies also reimburse you if you have to cut a trip short for any of these reasons.

2. Baggage Insurance or Personal Effects Coverage - provides coverage if your belongings are stolen, lost or damaged during your trip. Before purchasing, check to see if your airline or trip operator provides this coverage for you. Also, if you have a homeowners or renters policy, it may provide coverage for off-premises theft. Meaning they will cover your luggage in case of incident, less any deductible. You can also inquire with your insurer about extending any existing policy to cover traveling with expensive items.

3. Emergency Medical Assistance - provides travelers with insurance and medical assistance. It comes in handy if you are airlifted off a mountain, you had a prolonged stay in a foreign hospital, or you got seriously ill or injured and needed to be flown home. Check with your health insurance carrier to see what type of coverage you have when traveling abroad and whether the limits are. Ask if the policy will pay to either fly you home or to a country with adequate medical care.

4. Accidental Death - includes a variety of coverages if you or a family member die during the trip. If you have a life insurance plan or other financial provisions, you may already be covered. Your credit card company may provide travel related coverage. You can also purchase travel insurance from a travel agent or directly from an insurer that specializes in this type of coverage.

You can buy travel insurance packages which include a combination of these options. It's best to check with any existing insurance providers to see if you are already covered and to what extent. Then, see if they offer the coverage you're looking for if you don't already have it.