A vacation abroad can be a fantastic experience and a once in a lifetime adventure. However, it would be a great tragedy if something unexpected happens to you or to a member of your family on your trip, particularly so far from home. Going without travel insurance is a terrible idea, and travel agents have witnessed more than a few disasters experienced by uninsured travellers. For more information about why you need travel insurance, read the top ten reasons why you need travel insurance.

One nice thing about travel insurance is that it is essentially a one-time fee, and you can purchase it through a travel site, through a travel agent, or from a private carrier and pay when you buy your plane ticket. If you are a frequent traveller, you can purchase a more extensive, continuous insurance which covers all travelling during the period for which the insurance was obtained.

Before buying travel insurance however, it is important to understand what type of cover you should get because not all travel insurance policies are the same, and not everything is included merely by having travel insurance. You should shop around and get several quotations to find the best price for your travel insurance rather than opting to travel without cover or just opting to take the cheapest option. Cheaper policies will have less cover, and in most cases, what you’re covered for won’t be worth the initial saving. If certain things that you have taken for granted aren’t covered, the insurance company may not pay out on claims and you, or your family, will need to pay all expenses. So it is very important to shop around for a policy which suits your individual needs, budget and region of travel.

“There are no foreign lands. It is the traveller only who is foreign.”

–        Robert Louis Stevenson

Listed below are the different types of travel insurance that you can buy:

Medical Expenses – This is perhaps the most important type of travel insurance cover, particularly if you are travelling to developing countries or countries with exorbitantly expensive medical and hospital systems.

Personal Liability/Car Rental Protection – If someone is accidentally injured or their property – such as the rental car – is damaged by you or something belonging to you, they could make a legal claim against you. This type of travel insurance will cover you for personal liability.

Emergency Evacuation/Repatriation – This type of travel insurance covers the costs of medical evacuation and repatriation in the event of you or a loved one being taken critically ill or passing away during a vacation. It also covers you in case you need to be transported to a hospital by helicopter.

Trip Cancellation/Interruption – Trip Cancellation travel insurance gives you back the money you lose if you can’t travel or cut your trip short because of unforeseen events. For example if you, a close family member or a travelling companion gets hurt or sick before the travel date or for you can no longer travel for whatever reason, travel insurance reimburses you the money you would otherwise have lost.

Accidental Death, Injury or Disablement Benefit – This type of travel insurance protects your family in the event that a family member dies or incurs a serious injury during the vacation. It also covers you on your flight over and back. It acts like any life insurance policy, paying your beneficiary a set amount in the event of death.

Personal Luggage and Emergency Replacement of Essential Items- This generally covers your personal baggage and personal items in the event that they are lost, damaged or stolen.

Delayed Departure Coverage – This type of travel insurance handles transportation delays. If your hometown or airport is snowed in and there are no flights going out for several days, your prepaid hotel expenses are covered.

Loss, theft or damage to personal possessions and money (including travel documents) – This covers you for stolen, lost or damaged possessions. Generally there is an overall limit on claims and a limit on what you can claim per item. Check these limits in your policy are adequate and realistic and ask if you can cover specified items such as a laptop or camera of a higher value.

Legal Expenses – Taking out legal expenses cover will help you to pursue compensation or damages following personal injury while you’re abroad. This would be very important, particularly in countries without a legal aid system.

Backpacker - This type of insurance is ideal if you are you planning on doing a trip where you will include backpacking to different countries.

Make sure that you retain the receipt from the travel agent including the cost of the trip. In addition, keep all unused airline tickets and transportation receipts, medical bills, copies of theft or other official reports, and any other pertinent receipts relating to the specific claim. As always, you should read the small print. It’s agonising for travel insurance, to tell you the truth, but if you take your time it should be clear enough.