Before going on a holiday or an extended backpacking trip, the last thing you want to think about is the potential for an emergency to occur. If you're like me, you're too busy thinking about all the amazing things you will see, do, and eat in your destination of choice to spend any time worrying about potential problems. But it is important to be prepared, and if you have done everything you reasonably can to minimize your risks, you can then kick back and enjoy your trip without stress.

Therein lies the main benefit of travel insurence: peace of mind. You will probably not need to make use of your insurence, but knowing you have it just in case will make your trip more enjoyable. So what does travel insurence generally cover? Of course you'll need to look at the specifics of your insurence plan, but it generally involves accident coverage that includes injury and illness; repatriation to your home country in very extreme situations;  theft and loss; and flight cancellation and missed departures, etc.

Travel insurence can be purchased on a trip-by-trip basis, or if you are a frequent traveler on a yearly basis for multiple trips. If you buy single trip coverage, it may become invalid the moment you first return to your home country, even if it is a transit point. So be careful of what is considered a single trip.

Does everybody need travel insurance? Well, it depends on your needs, your flexibility, and the medical insurance you already have. I personally have a private medical plan that covers me all around the world, except for the USA. So I do not need the medical coverage that travel insurance provides. When I lived at home in Canada and was enrolled in the Canadian national health insurance system, overseas travel was not covered so in those days I always bought travel insurance.

I could possibly benefit from the other parts of coverage, such as cancellation coverage and theft coverage, but the way I travel is so flexible that I personally don't feel the need for these. What could be stolen? My dirty underwear? Be my guest, thieves! My ipod? That would be an annoyance, but let's be real - I don't really care that much. My money? I carry multiple bank debit cards stashed in different places and with low daily withdrawal caps. I don't carry much cash. How about trip cancellation coverage? Well, it would take a huge disaster to make me cancel a trip, such as a death of a close loved one. In that case, I think the several hundred dollars for my airplane ticket would be the least of my worries, so the insurance is not worth the cost for me personally.

Does that mean travel insurance is useless for everybody? Absolutely not. For one, somebody on an expensive family trip with a tight schedule, an all-inclusive deal paid for in advance, should probably buy insurance, because they stand to lose not only their airfare, but the cost of the entire trip upfront. And on a family trip you may have a lot of gadgets and goodies in tow, junior's Nintendo DS, his big sister's $500 camera, your wife's jewelry. Amidst all the distracting fun you're having, somebody could easily lose something. And families are thought by thieves to be easy targets and are often targeted for thefts. I am confident that I can take care of my own belongings, but I'm not so confident in my family's ability to do so.

So travel insurence can be an important part of a trip, and can put your mind at ease so you don't have to be quite so on guard. I personally don't use travel insurence, because my traveling style is independent, very impulsive, and done with minimum belongings in tow, and I have global medical insurance already. Take a look at your needs and decide whether travel insurence is important for you.