Travel insurance premiums are based on type of the coverage, age, and trip's cost, about 5% up to 7% of the cost. Destination, safety and weather (prone area) also affect the premium cost. Before deciding on buying travel insurance, it will better if you check out the reputation of the company you want to purchase from. This action is necessary to avoid overpriced policies. You can check on the U.S Travel Insurance Association to get advice on choosing travel insurance. There are three type of travel insurance:

1. Per-trip Coverage

This coverage providing protection for a single trip, thus suitable for people who travel occasionally. Per-trip coverage is the most common coverage.

2. Multi-trip Coverage

Multi-trip coverage gives protection for multiple trip in a year, but the trip itself can not exceed 30 days. 

3. Annual Coverage

Annual Coverage gives a full year protection and reserved for frequent travelers.

Consider your actual needs before buying travel package. It may offers good protection but sometimes several policies have duplicate coverage that you already have or providing coverage for refundable cost. In addition, you need to fully understand which reason for trip cancelation are covered and they match your needs and concern. Most policies may cover trip cancelation due to illness or injury. However, if you are concerned about the trip destination or any other reason like work, you may need "cancel for any reason" policy.

In trip cancelation case, figure out how much money is actually at risk to help you decide if you need coverage. For example, you pay $2,500 for tour package and in the tour's cancelation policy you will get reimbursement except for $200 if you cancel, you need to insure that $200. If you purchase a refundable airline ticket, you don't need to insure it. You have to make sure insuring the un-recoverable cost.

If you already have life insurance policy, buying accidental death may not be necessary. Consider a Hazardous Activity rider that provides additional coverage if your death caused by sport or un-covered activity. Most health insurance companies will pay customary and reasonable hospital costs if you become sick or injured during traveling, but only a very few will pay for medical evacuation. Medicare does not cover medical expenses outside the U.S. So purchasing emergency medical may or not waste. 

The most common problem for travelers is lost, stolen or damaged baggage and personal belongings. Keep in mind that you might not need some of the minor coverage. Airlines and cruise lines are responsible for loss and damage to your baggage. Your credit card may also provide automatic protection if you make deposit or charge other trip related expenses. 

In general, avoid buying travel insurance from travel agency or cruise line because they might sell policy for high commission. It's better to purchase travel insurance through online broker which offers insurance from various carriers. Make sure to read sample copy of the policy to check 

all the protections you need.