Many travel agencies and tour companies sell travel insurance directly, but it means you probably won't be able to collect if they go under. In general, it's best to buy travel insurance directly from an insurance company.

Various options for travel insurance.

Comprehensive Coverage
A travel insurance policy usually offers two types of coverage: trip cancellation and/or 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. Generally, a comprehensive travel insurance policy will cover every need you can anticipate and costs 5 to 7 percent of the price of your trip, so a vacation package valued at $US5,000 can be insured for $US250 to $US350, and is well worth the piece of mind.

Medical Insurance
If you do not want and/or need comprehensive coverage, you must consider medical or health insurance coverage as an integral part of your trip-planning budget. If you do not have any pre-existing medical conditions to consider, the cost of medical insurance can be purchased for under $US1.50 per day per person. Be sure to carry details of your insurance plan with you, and leave a copy with a relative or friend at home in case your copy is lost or destroyed.

Medigap is a supplemental insurance that will cover some costs not covered by Medicare, and only pays for emergency care and only the first 60 days you're outside the U.S. The U.S. Social Security Medicare Program does not provide for payment of hospital or medical services outside the United States.

American Based HMOs and PPOs
HMOs, while covering emergency room treatment anywhere, generally offer other coverage only through networks of doctors in your own state. Preferred Provider Organizations (PPOs) cover a greater portion of your medical costs only if you go to doctors in the network, and again, the networks are usually local.

Plans cancelled at the last minute
Trip cancellation and/or interruption insurance covers the "Murphy Factor" to reimburse you for any non-refundable deposits you put down on a trip if it turns out that you won't be able to travel as planned. Be sure to read the fine print on the policy BEFORE you buy it, as the events covered are directly proportional to the cost of the coverage. Be sure to discuss this with your insurance agent so you can get the coverage you want and need for your particular situation.