Madrid Travel Guide

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. You can get estimates from various providers through InsureMyTrip.com. Enter your trip cost and dates, your age, and other information, for prices from more than a dozen companies.

Since Spain for most of us is far from home, and a number of things could go wrong -- lost luggage, trip cancellation, a medical emergency -- consider the following types of insurance.

Check your existing insurance policies before you buy travel insurance to cover trip cancellation, lost luggage, medical expenses, or car rental insurance. You're likely to have partial or complete coverage. But if you need some, ask your travel agent about a comprehensive package. The cost of travel insurance varies widely, depending on the cost and length of your trip, your age and overall health, and the type of trip you're taking. Insurance for extreme sports or adventure travel, for example, will cost more than coverage for a European cruise. Some insurers provide packages for specialty vacations, such as skiing or backpacking. More dangerous activities may be excluded from basic policies.

Access America (tel. 800/284-8300; www.accessamerica.com)

Travel Assistance International (tel. 800/821-2828; www.travelassistance.com)

Travel Guard International (tel. 800/826-1300; www.travelguard.com)

Travel Insured International (tel. 800/243-3174; www.travelinsured.com)

Travelex Insurance Services (tel. 800/228-9792; www.travelex-insurance.com)

Trip-Cancellation Insurance (TCI)

There are three major types of trip-cancellation insurance -- one, in the event that you prepay a European tour that gets cancelled, and you can't get your money back; a second when you or someone in your family gets sick or dies, and you can't travel (but beware that you may not be covered for a preexisting condition); and a third, when bad weather makes travel impossible. Some insurers provide coverage for events like jury duty; natural disasters close to home, like floods or fire; even the loss of a job. A few have added provisions for cancellations because of terror activities. Always check the fine print before signing on, and don't buy trip-cancellation insurance from the tour operator that may be responsible for the cancellation; buy it only from a reputable travel insurance agency. Don't overbuy. You won't be reimbursed for more than the cost of your trip.

Trip-cancellation insurance will help retrieve your money if you have to back out of a trip or depart early, or if your travel supplier goes bankrupt. Permissible reasons for trip cancellation can range from sickness to natural disasters to the State Department declaring a destination unsafe for travel.

For more information, contact one of the following recommended 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).

Medical Insurance

Most health insurance policies cover you if you get sick away from home -- but check, particularly if you're insured by an HMO. With the exception of certain HMOs and Medicare/Medicaid, your medical insurance should cover medical treatment -- even hospital care -- overseas. However, most out-of-country hospitals make you pay your bills up front and send you a refund after you've returned home and filed the necessary paperwork. Members of Blue Cross/Blue Shield can now use their cards at select hospitals in most major cities worldwide (contact tel. 800/810-BLUE or www.bluecares.com for a list of hospitals).

Some credit cards (American Express and certain gold and platinum Visas and MasterCards, for example) offer automatic flight insurance against death or dismemberment in case of an airplane crash if you charged the cost of your ticket to the card.

If you require additional medical insurance, try MEDEX International, 9515 Deereco Rd., Timonium, MD 21093-5375 (tel. 888/MEDEX-00 or 410/453-6300; fax 410/453-6301; www.medexassist.com) or Travel Assistance International (tel. 800/821-2828; www.travelassistance.com), 9200 Keystone Crossing, Suite 300, Indianapolis, IN 46240 (for general information on services, call the company's Worldwide Assistance Services, Inc., at tel. 800/777-8710).

The cost of travel medical insurance varies widely. Check your existing policies before you buy additional coverage. Also, check to see if your medical insurance covers you for emergency medical evacuation. If you have to buy a one-way same-day ticket home and forfeit your nonrefundable round-trip ticket, you may be out big money.

Lost-Luggage Insurance

On flights within the U.S., checked baggage is covered up to $2,500 per ticketed passenger. On international flights (including U.S. portions of international trips), baggage coverage is limited to approximately $9.07 per pound, up to approximately $635 per checked bag. If you plan to check items more valuable than what's covered by the standard liability you may purchase "excess valuation" coverage from the airline, up to $5,000. See if your homeowner's policy covers your valuables, get baggage insurance as part of your comprehensive travel-insurance package, or buy Travel Guard's "BagTrak" product.

Before you leave home, compile an inventory of all packed items and a rough estimate of the total value to ensure you're properly compensated if your luggage is lost. You will only be reimbursed for what you lost, no more. Be sure to take any valuables or irreplaceable items with you in your carry-on luggage. If your main luggage is lost, immediately file a lost-luggage claim at the airport, giving full details of all contents, as most airlines enforce a 21-day deadline. Most airlines require that you report delayed, damaged, or lost baggage within 4 hours of arrival.

Once you've filed a complaint, persist in securing your reimbursement; there are no laws governing the length of time it takes for a carrier to reimburse you.

If you arrive at a destination without your bags, ask the airline to forward them to your hotel; they are required to deliver luggage, once found, directly to your house or destination free of charge and will usually comply. The airline may reimburse you for reasonable expenses, such as a toothbrush or a set of clothes, but the airline is under no legal obligation to do so.

Lost luggage may also be covered by your homeowner's or renter's policy. Many platinum and gold credit cards cover you as well. If you choose to purchase additional lost-luggage insurance, be sure not to buy more than you need. Buy in advance from the insurer or a trusted agent (prices will be much higher at the airport).

Car Rental Insurance (Loss/Damage Waiver or Collision Damage Waiver)

If you hold a private auto insurance policy, you are probably not covered in Spain for loss or damage to the car, or liability in case a passenger is injured. The credit card you used to rent the car may provide some coverage.

Check your own auto insurance policy, the rental company policy, and your credit card coverage for the extent of coverage. Is your destination covered? Are other drivers covered? How much liability is covered if a passenger is injured? (If you rely on your credit card for coverage, you may want to bring a second credit card with you, as damages may be charged to your card, and you may find yourself stranded with no money.)