Check your existing insurance policies and credit card coverage before you buy travel insurance. You may already be covered for lost luggage, canceled tickets or medical expenses. The cost of travel insurance varies widely; you can get estimates from various providers through InsureMyTrip.com.
Trip Cancellation Insurance -- Trip-cancellation insurance helps you get your money back if you have to back out of a trip, if you have to go home early, or if your travel supplier goes bankrupt. Allowed reasons for cancellation can range from sickness to natural disasters to the State Department declaring your destination unsafe for travel. (Insurers usually won't cover vague fears, though, as many travelers discovered who tried to cancel their trips in Oct 2001 because they were wary of flying.) In this unstable world, trip-cancellation insurance is a good buy if you're getting tickets well in advance -- who knows what the state of the world, or of your airline, will be in 9 months? Insurance policy details vary, so read the fine print -- and especially make sure that your airline or cruise line is on the list of carriers covered in case of bankruptcy. 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).
Lost-Luggage Insurance -- On domestic flights, checked baggage is covered up to $2,500 per ticketed passenger. On international flights (including U.S. portions of international trips), baggage is limited to approximately $9.07 per pound, up to approximately $635 per checked bag. If you plan to check items more valuable than the standard liability, see if your valuables are covered by your homeowner's policy, get baggage insurance as part of your comprehensive travel-insurance package, or buy Travel Guard's "BagTrak" product. Don't buy insurance at the airport, as it's usually overpriced. Be sure to take any valuables or irreplaceable items with you in your carry-on luggage, as many valuables (including books, money, and electronics) aren't covered by airline policies.
If your luggage is lost, immediately file a lost-luggage claim at the airport, detailing the luggage contents. For most airlines, you must report delayed, damaged, or lost baggage within 4 hours of arrival. The airlines are required to deliver luggage, once found, directly to your house or destination free of charge.
Car-Rental Insurance -- If you hold a private auto insurance policy, you probably are covered in the United States, but not abroad, for loss or damage to the car, and liability in case a passenger is injured. The credit card you used to rent the car 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.)
