Insurance for a Budget Trip

Last week, the airline joyfully booked your flight. This week, it declared bankruptcy.

Last month, you reserved space on a cruise to the Caribbean. A few weeks later, a close loved one became critically ill.

Travel insurance was made for such situations.

Still, relatively few travelers add the expense to their budgets, since they've never before had any problems.

In uncertain times, travel insurance can become a money-saver.

In many cases, travel insurance just isn't worth the added expense. Short trips with prices to match don't merit a policy.

But if you're booking a honeymoon cruise or some other "dream trip," travel insurance could save you a lot of money and aggravation.

Some varieties to consider:

Medical/Dental coverage

Does your health insurance cover you in another country or continent? Some offer only partial coverage that could leave you liable for a big portion of the bill. Many travelers also get coverage that will provide transportation home or at least to adequate medical facilities. In the rare event of a death overseas, there are policies that cover the expensive costs transporting the remains back home.

Terrorism/Civil Unrest

If a given airline decides to put its crew and equipment at risk and fly to a troubled destination, they are not usually obligated to provide a refund if you choose not to join them. Beyond the so-called hot spots, September 11th taught us that one terrorist attack can shut down thousands of airports far removed from the violence.

Trip Interruption/Cancellation

Factors beyond our knowledge and control can influence travel plans. If you lose your money on an interrupted or canceled trip, will you have enough to continue the journey at some other time? For many of us, the answer is "no."

Car Rental Insurance

Many travelers decline it because they're covered by their own auto insurance policies or their credit card. But it's worth checking to see if you are covered in your destination as well (especially if that destination is another country). Some coverage takes care of collision damage only, while other more extensive policies also cover your liability for your passengers and anyone else you might injure.

Luggage/Personal Possession Loss

You've heard it before, but it bears repeating: leave your valuables at home! But sometimes, an expensive camera or formal suit needed on the trip becomes lost or stolen. Your homeowner policy probably covers some of this, but perhaps only a portion of the total. Read up on what coverage you have in place, and supplement it if necessary.

Bankruptcy Protection

Let's say an airline ceases operations. A news release from the airline states "ticket holders should be able to fly on other carriers." But what happens if those other airlines can't meet your needs? Unless you have immediate fears about the financial health of your chosen company or very specific requirements for "other arrangements," it might be best to do without this coverage.

All-inclusive policies

The name can be confusing because these policies often do not include all possible problems in the coverage. They simply cross several boundaries to include a variety of issues. Read the fine print carefully before purchasing any policy.

This is not an exhaustive list of insurance available, but it covers what most travelers are likely to want. What are the best ways to go about buying these coverages? Click "next" and find out.