Check your existing insurance policies and credit-card coverage before you buy travel insurance. You may already be covered for lost luggage, canceled tickets, or medical expenses.

The cost of travel insurance varies widely, depending on the cost and length of your trip, your age and health, and the type of trip you're taking, but expect to pay between 5% and 8% of the vacation itself. Insurance that at least covers loss or theft of baggage and personal effects is particularly recommended when traveling to Spain.

Trip-Cancellation Insurance -- Trip-cancellation insurance helps you get your money back if you have to back out of a trip, if you have to go home early, or if your travel supplier goes bankrupt. Allowed reasons for cancellation can range from sickness to natural disasters to the State Department declaring your destination unsafe for travel. (Insurers usually won't cover vague fears, though, as many travelers discovered who tried to cancel their trips in Oct 2001 because they were wary of flying.) In this unstable world, trip-cancellation insurance is a good buy if you're getting tickets well in advance -- who knows what the state of the world, or of your airline, will be in 9 months? Insurance policy details vary, so read the fine print -- and especially make sure that your airline or cruise line is on the list of carriers covered in case of bankruptcy. For information, contact one of the following insurers: Access America (tel. 866/807-3982; www.accessamerica.com); Travel Guard International (tel. 800/826-4919; www.travelguard.com); Travel Insured International (tel. 800/243-3174; www.travelinsured.com); and Travelex Insurance Services (tel. 888/457-4602; www.travelex-insurance.com).

Lost-Luggage Insurance -- On international flights (including U.S. portions of international trips), coverage on baggage is limited to approximately $9.05 per pound, up to approximately $635 per checked bag. If you plan to check items more valuable than the standard liability, see if your valuables are covered by your homeowner's policy, get baggage insurance as part of your comprehensive travel-insurance package, or buy Travel Guard's "BagTrak" product. Don't buy insurance at the airport, as it's usually overpriced. Be sure to take any valuables or irreplaceable items with you in your carry-on luggage, as many valuables (including books, money, and electronics) aren't covered by airline policies.

If your luggage is lost, immediately file a lost-luggage claim at the airport, detailing the luggage contents. For most airlines, you must report delayed, damaged, or lost baggage within 4 hours of arrival. The airlines are required to deliver luggage, once found, directly to your house or destination free of charge.