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Travel insurance: why you rarely need it.
Since the horrors of 9/11, the travel insurance industry has grown rapidly.Americans now spend more than $1 billion annually on its products, with about 30 percent of travelers purchasing one type of coverage or another, up from just 10 percent before 9/11.
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In most cases, however, buyers would do better saving their money for souvenirs, because the insurance merely duplicates coverage that they already have.
Travel insurance encompasses many different products. The Insurance Information Institute, an industry group, divides them into four categories:
* Trip cancellation/interruption insurance. This coverage is meant to help you get your money back if you need to call off your plans or if your cruise or tour operator, for example, files for bankruptcy.
* Personal effects or baggage coverage. Lost, stolen, or damaged belongings are paid for under such policies.
* Emergency medical assistance. This covers the cost of overseas health care and/or emergency evacuations.
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