Insurance: What, When, How, Why

Mantini, who is still fighting the decision, sees the situation differently. "We bought the insurance because we didn't know what was going to happen," she said. "I thought that was what insurance was for. It's partly my fault because I didn't read the fine print. But I assumed insurance would cover us in this situation."

Short of sending a prospective travel insurance policy to a lawyer, travelers can protect themselves by matching the right policy to their situation. Here are a few answers to commonly asked questions.

Q Do I need to purchase travel insurance?

AIf you're traveling domestically by car and staying at your brother-in-law's house, probably not. But if you're investing thousands of dollars into a trip to a resort, traveling out of the country or going with a group of relatives or friends, it's a good idea. According to figures from the U.S. Travel Insurance Association, an umbrella group of seven of the nation's largest travel insurance companies, only 12 percent of travelers took out insurance before 9/11; that percentage has grown to 20 to 25 percent. Few travel providers offer easy refunds, so without trip insurance, you very well may be out of luck. Some medical insurance will cover you outside the country, but extras -- like paying for someone to escort you home -- will not be included. Also, if you have a costly, benefits-filled credit card, you may have some coverage, but check first.

Are there different kinds of travel insurance?

Perusing a list of travel insurance policies is like looking at a menu at a Greek diner -- there are pages of choices. Most travelers opt for a package deal, which includes medical coverage, trip protection, baggage loss and medical evacuation. But many new products cover specific situations. For example, Travel Guard recently launched Cruise Guard for cruise passengers. Access America developed QuickTrip for last-minute travelers who don't need trip-cancellation insurance but want medical and trip interruption coverage. Medjet International markets a product that's not actually insurance, but for a yearly fee, you can be airlifted to the hospital of your choice in case of a medical emergency. There are also special policies for students and yearly policies for business travelers.

Will I be covered if my travel provider ceases operation?

Maybe. Some insurance providers, such as Access America, list the tour companies and airlines they'll cover; United and other airlines in bankruptcy proceedings are not covered. Other policies, including some from CSA Travel Protection, will cover bankruptcy if the policy is purchased within a certain time period of the initial trip payment. And others, such as Travel Insured, will cover you only if no alternative transportation is available.

If a hurricane or another weather disaster hits, will my vacation be protected?

Many policies do not cover weather disasters, unless everything is shut down. So if planes are running and the resort is open, you'll have to take the trip or lose your money, regardless of the conditions. Some real estate agents in local resorts, such as Village Realty in Nags Head, N.C., offer a policy from CSA that will refund your trip cost for mandatory hurricane evacuations on a prorated basis. Travel Guard also has a product that covers hurricanes.