Insurance for the Overseas Traveler

Are you planning to travel to a foreign country? Keep in mind that forgetting to buy insurance isn't like forgetting your toothbrush or sunscreen. You should be able to find a pharmacy when you get to your destination, but be sure that you take care of your insurance needs before you leave. Here are some suggestions to get you started.

When you're too far away for mom's chicken soup

Although you don't plan on getting sick or into an accident, especially on vacation, you'll want to be prepared just in case. Many domestic health insurers won't cover losses suffered outside the United States. So while you may be fully covered at home in Glenview, Illinois, or Beulah, Wyoming, don't expect the Swiss medical provider to accept your HMO coverage as payment if you break your leg skiing the Alps. Many people believe that their health insurance will cover them if they need medical treatment in a foreign country. In most cases it won't, at least not 100 percent, so check with your insurer before you travel.

Driving on the other side of the yellow brick road?

If you plan to drive while in a foreign country, you'll want to learn the rules of the road for the country you're in. You'll also need to find out that country's policies on foreign drivers. You should consider getting an international driver's license, which identifies you as a licensed driver in your country of residence. In some countries, you can't rent a car without one. Make sure you have adequate auto insurance, since it's likely that your personal auto policy won't cover you outside of the United States. Check with your insurer to be sure.

If it ain't broke, don't fix it!But what if it's lost or stolen?

What if you arrive in Paris only to learn that your luggage is on its way to Paraguay? Often, homeowners policies provide coverage for theft or destruction of personal property. However, both your home insurance policy and your personal umbrella policy will cover you only for "named perils"--those circumstances listed in your policy. As a result, you'll want to make sure that your personal property is protected, especially when you're far away from home. Ask your insurance agent for information on lost luggage insurance.

When the friendly skies aren't so friendly

Planning a cruise to Puerto Vallarta? Flying to Mazatl? You may want to consider trip interruption insurance. If the cruise line goes out of business before departure, or your trip is canceled due to weather conditions, trip interruption insurance may help you recover all or part of your expenses. It may also cover airfare and hotel costs if you must cancel your trip because of illness or a death in the family.

What's out there?

Many companies offer overseas insurance packages that include all of the insurance you could ever need and then some. Prices are based on age, length of stay, and the number of people covered. If you shop around, you may find a one-week coverage package for under $50 per person. Packages often include:

• Emergency medical and dental
• Emergency medical evacuation
• Repatriation of remains
• Accidental death and dismemberment
• Trip cancellation/interruption/delay/default
• Baggage loss/damage
• Rental car protection
• Visitor to bedside and return of dependent children
• Pre-existing condition waiver

Check with your insurer or visit one of the numerous insurance company websites for more information.

Smart travel tips

• Carry your cash, traveler's checks, travel documents, jewelry, and other valuables in a carry-on bag or on your person.
• Tie a colored ribbon or elastic band to the handle of your suitcase as an identifier.
• If you rent a car, choose one with a trunk--hatchbacks allow thieves to go window-shopping.
• Pick up a phrase book specific to your destination. It may come in handy when the clerk doesn't understand, "Where is the bathroom?"
• Avoid drinking tap water. It may be safe for the locals, but it could make you sick and ruin your vacation.
• For the best deals, travel in the off-season and plan ahead.