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While travel insurance was formerly looked upon as a luxury, consumers concerned about whether their vacations can be canceled by incidents outside their control, or worried about the quality of medical care in the area they are visiting, now view travel insurance as a good value. Generally, a comprehensive travel insurance policy costs 5 to 7 percent of the price of your trip.

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Travel insurance policy usually offers two coverages: trip cancellation/interruption and emergency medical evacuation. Reimbursements for lost baggage or trip delays are nice if they come bundled with trip cancellation/interruption or emergency medical evacuation, but they're usually not good buys on their own. If you have absolutely no health insurance, or if your health plan won't cover you at all while you're abroad, then you should look into medical or hospital coverage. Be sure to check your health insurance policy carefully.

 

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