Insurance

The cost of travel insurance varies widely, depending on the cost and length of your trip, your age and health, and the type of trip you're taking, but expect to pay between 5% and 8% of the vacation itself. You can get estimates from various providers through InsureMyTrip.com. Enter your trip cost and dates, your age, and other information, for prices from more than a dozen companies.

Check your existing insurance policies before you buy travel insurance to cover trip cancellation, lost luggage, medical expenses, or car rental insurance. You're likely to have partial or complete coverage. But if you need some, ask your travel agent about a comprehensive package. Insurance for extreme sports or adventure travel will cost more than coverage for a European cruise. Some insurers provide packages for specialty vacations, such as skiing or backpacking. More dangerous activities may be excluded from basic policies.

Trip-Cancellation Insurance

Trip-cancellation insurance will help retrieve your money if you have to back out of a trip or depart early, or if your travel supplier goes bankrupt. Permissible reasons for trip cancellation can range from sickness to natural disasters to the State Department declaring a destination unsafe for travel.

For more information, contact one of the following recommended insurers: Access America (tel. 866/807-3982; www.accessamerica.com); Travel Guard International (tel. 800/826-4919; www.travelguard.com); Travel Insured International (tel. 800/243-3174; www.travelinsured.com); and Travelex Insurance Services (tel. 888/457-4602; www.travelex-insurance.com).

Medical Insurance

For travel overseas, most U.S. health plans (including Medicare and Medicaid) do not provide coverage, and the ones that do often require you to pay for services upfront and reimburse you only after you return home. As a safety net, you may want to buy travel medical insurance, particularly if you're traveling to a remote or high-risk area where emergency evacuation might be necessary. If you require additional medical insurance, try MEDEX Assistance (tel. 410/453-6300; www.medexassist.com) or Travel Assistance International (tel. 800/821-2828; www.travelassistance.com; for general information on services, call the company's Worldwide Assistance Services, Inc., at tel. 800/777-8710).

Lost-Luggage Insurance

On flights within the U.S., checked baggage is covered up to $2,500 per ticketed passenger. On international flights (including U.S. portions of international trips), baggage coverage is limited to approximately $9.07 per pound, up to approximately $635 per checked bag. If you plan to check items more valuable than what's covered by the standard liability you may purchase "excess valuation" coverage from the airline, up to $5,000. Look to see if your homeowner's policy covers your valuables, get baggage insurance as part of your comprehensive travel-insurance package, or buy Travel Guard's "BagTrak" product.

Before you leave home, compile an inventory of all packed items and a rough estimate of the total value to ensure you're properly compensated if your luggage is lost. You will only be reimbursed for what you lost, no more. Be sure to take any valuables or irreplaceable items with you in your carry-on luggage. If your main luggage is lost, immediately file a lost-luggage claim at the airport, giving full details of all contents, as most airlines enforce a 21-day deadline. Most airlines require that you report delayed, damaged, or lost baggage within 4 hours of arrival.

Once you've filed a complaint, persist in securing your reimbursement; there are no laws governing the length of time it takes for a carrier to reimburse you.

If you arrive at a destination without your bags, ask the airline to forward them to your hotel; they are required to deliver luggage, once found, directly to your house or destination free of charge and will usually comply. The airline may reimburse you for reasonable expenses, such as a toothbrush or a set of clothes, but the airline is under no legal obligation to do so.

Lost luggage may also be covered by your homeowner's or renter's policy. Many platinum and gold credit cards cover you as well. If you choose to purchase additional lost-luggage insurance, be sure not to buy more than you need. Buy in advance from the insurer or a trusted agent (prices will be much higher at the airport).

Car-Rental Insurance

If you hold a private auto insurance policy, you probably are covered in the U.S., but not in Spain, for loss or damage to the car, and liability in case a passenger is injured. The credit card you used to rent the card also may provide some coverage.

Car-rental insurance probably does not cover liability if you caused the accident. Check your own auto insurance policy, the rental company policy, and your credit card coverage for the extent of coverage. Is your destination covered? Are other drivers covered? How much liability is covered if a passenger is injured? (If you rely on your credit card for coverage, you may want to bring a second credit card with you, as damages may be charged to your card, and you may find yourself stranded with no money.)

Travel in the Age of Bankruptcy

Airlines go bankrupt, so protect yourself by buying your tickets with a credit card. The Fair Credit Billing Act guarantees that you can get your money back from the credit card company if a travel supplier goes under (and if you request the refund within 60 days of the bankruptcy). Travel insurance can also help, but make sure it covers against "carrier default" for your specific travel provider. And be aware that if a U.S. airline goes bust mid-trip, a 2001 federal law requires other carriers to take you to your destination (albeit on a space-available basis) for a fee of no more than $25, provided you rebook within 60 days of the cancellation.