Travel is such a large industry that in most major cities, a travel agency is probably no more than a 15-minute drive away. And when it comes to insurance, most of us can get covered for about the price of a pair of shoes. But that doesn’t mean it’s safe to grab the first policy that comes along. True, you should compare the market travel insurance rates for the day, but it’s also worth asking what these rates get you. All it takes is a stroke of bad luck for a ho-hum policy to become an expensive, stressful nightmare. Here are some things you should never scrimp on in travel insurance.

Medical cover: Consumer groups suggest about $500,000 worth of coverage for trips within the continent, and up to $1 million elsewhere. This applies to U.S. and U.K. travelers, and will cover illnesses and accidents that occur during the trip. Pre-existing conditions may cost you more. You must also have access to emergency services 24/7, whether for medical or non-medical reasons. European residents travelling around Europe can fill out the European Health Insurance Card, which ensures free or discounted healthcare in the destination; however, this should only be taken as backup coverage.

Personal liability: You may be sued for damaging property or causing injury, whether intentionally or not. Some countries, like Singapore, have particularly stringent laws on this. Personal liability cover will ideally protect you for up to $2 million.

Lost and stolen possessions: This will depend largely on how much you are bringing. Ideally you’ll be travelling light—not only does it make for a more comfortable trip; it also makes it easier to keep track of your stuff. Make sure to check for lost luggage cover: airlines lost 42 million bags in 2010, so the risk isn’t that far-fetched.

Cancellations and interruptions: Trips can be disturbed or cut short for several reasons, ranging from a simple change of heart to natural disasters and family emergencies. For an average overseas trip, you’ll need at least $6,000 in cancellation cover.

Single vs. multiple trips: If you spend half the year or more out of town, you may benefit from the higher premiums of an annual cover, if only because you don’t have to do the paperwork every time you leave. Just don’t forget to look up the limitations of annual cover—there may be caps on the length of each trip, or you may have to pay fines if you stay out of the country longer than agreed.

In most ways, older travelers have it good: they get priority boarding on planes, senior-citizen discounts, and all sorts of special treatment on the road. But one thing that’s often overlooked—and usually hits them in the face come summertime—is the higher price of travel insurance.

Travel insurance over 65 is expensive, not to mention complicated. If they are covered at all (as some companies simply turn down anyone over that age), the premiums can double compared to travelers in their thirties. After that, the prices go up further in ten-year increments, sometimes five.

Insurers point to the higher risk entailed by older travelers, particularly medical claims, which cost them the most. In other words, older people are more prone to disease and accidents. The insurance industry is concerned with averages—even if you can outrun your twenty-something niece at 70, they simply count you among the thousands of frail 70-year-olds in your country.

But we’re only talking big-name companies, who tend to dictate market prices much like oil companies. If you look further, you can find smaller but equally comprehensive insurers willing to cover you for less. It may take a bit more research as small companies differ more widely in terms of conditions covered, but a few hundred dollars can go a long way.

Start by deciding how much cover you need. This can vary widely from one traveler to another; for instance, a hang-gliding enthusiast and a museum-hopper will need entirely different types of coverage. Prices also go up the further you go; generally, once you leave your continent, insurers put you on a higher risk bracket.

Senior travelers often have to choose between single-trip and multi-trip policies. The latter is usually handy only if you travel extensively, say more than five trips a year. It will cover all the trips you make in a given period, and doesn’t need to be renewed for new trips. The catch is that it’s hard to find this kind of travel insurance over 65; some companies cap their coverage at 75.

Existing conditions should be an older traveler’s biggest concern. When you take out insurance, make sure to note all medical conditions you are aware of. If you need treatment for an undeclared condition, you won’t get any compensation, even if the condition comes up while you’re under an annual policy. Declaring it will increase your premiums slightly, but it’s better to be safe than sorry!

Before you set out on your family holiday there are many things to prepare. Your checklist usually includes what you need to pack, things to keep the kids occupied and organising transport to the airport.

What you may not have considered is one of the most important items of all. For peace of mind you should make sure you organise travel insurance as for your holiday.

Making sure you have the proper travel insurance for  your trip is important so that your family are covered in the event of accidents and theft during your holiday.

Annual can be purchased for longer periods of time, should you be making multiple trips during a short period of time.

There are a number of different travel insurance policies depending on the length of your trip from annual cover to monthly.

Annual insurance is often a cheaper than per trip travel insurance so is worth investigating.

Just as when you shop for other items, make sure you shop around and research different policies. Make sure you check the details of each plan so you are covered for the most likely accidents.

The cost is affected by the length of your trip as well as the different countries you plan to visit. Also take into consideration the activities you will be doing including sports and adventure activities.

Coverage for theft is a must, this includes your personal belonging that you have on you as well as luggage that you may have in transit.

Once your insurance is finalised, you have less to worry about and can enjoy your holiday. Because that’s what holidays are for!

By: Peter Bennet

About the Author:

Peter is an experienced writer based in the Australia doing freelance articles for the travel industry. More helpful tips can be found at travel insurance 101