Really depends on the country you’re from.  In Canada and the USA, good policies are offered through student travel agencies (ie Travel Cuts and STA Travel), as well as through AAA/CAA automobile associations.  One tip – check your homeowners (or renter) insurance policy (or that of family if you live at home).  Often, home policies cover theft/loss of goods while travelling.  This might save you a bit, as you wouldn’t need to buy this particular form of coverage.

ok then will do thanks alot

I totally agree with nomad — check the coverage you’ve already got, then compare that what seems the best price and coverage for your trip. Personally, I have never had an additional travel policy, nor have I ever needed one.

Medical: Checksee if your current medical coverage extends to Europe. Get the procedures—phone numbers, forms, process, etc.—just in case you were to break your arm, or come down with some death-flu while abroad. Beware those “emergency evacuation” coverages; why? I mean if you’re on deaths door, the last thing you want is a 9 hour airplane ride—if they’d even fly you in that condition. Medical facilities in Europe are some of the world’s best. Would coverage extend to mum and dad to come and be at your bedside? Maybe, maybe not.

Baggage: Simple—anything that puts your baggage values over $1600 either should be in your carry-on, or left at home. Cheapest insurance: Mark clearly the lodging address you will be staying at when you arrive. Most misdirected baggage is delivered to you within 24 hours. If you’re super-worried about this, then put your next address(es) with a timetable for arrivals at those places—both on the outside bag tag, and in an easily-accessed outside pocket on each checked bag.

Flights: $200 to change. I don’t know of any insurance that will cover you completely if you simply change your mind.

Lodging deposits and payments: Reserve but don’t pay. Places that require payment up-front are usually places that are inexpensive to start with, so you’re not risking a lot.

Prepaid travel /passes: Rail passes are usually good for the travel year they are purchased. It’s not active or validated until the first day that you validate it before hopping on the first train. If you have pre-paid tickets, like ferry tickets or point-to-point train tickets, then this might be a risk.

There are definite advantages to NOT booking every aspect of a trip down to the ‘t’; ie, if plans change, you’ve not lost much. If you are a “planner/organizer” that must have things set, and the type that falls apart when something unexpected comes up, then maybe well-priced, good value travel insurance is for you. If you’re flexible and price-conscious, then those qualities probably save you a lot more than just the cost of a travel insurance policy.

Sometimes the potential loss is so significant that insurance almost seems necessary. For example, I’ve had some airline tickets which had absolutely no possibility for changes. If I had to suddenly buy a ticket home at walk-up prices, the cost would have been extreme (as much as several thousand dollars). If you are traveling with a family, you can imagine the possible risk then. If the cost is only $200 to make a change, then I would consider it differently. If I have an itinerary with totally nonrefundable intercontinental tickets, budget flights within Europe, and prepaid nonrefundable accommodation, then I consider that enough of a risk to buy trip interruption insurance. 

thank you for all the advice guys

somebody recommended insuremytrip.com to me but it seems too expensive.  I’m just looking to cover lost/stolen baggage.  My ipod and camcorder are probably worth about $600 together, then my backpack plus clothes makes by baggage probably about $1000.  All i’d want is a baggage protection plan for about that much.  Any advice….is it worth to get and were could i get a plan this simple?

It depends on what you are looking for.  I always fear the worse and was concerned about my trip being cancelled for reasons not typically covered by regular insurance (i.e. I suddenly lose my job or something). 

www.travelinsure.com offers “Change of Mind” protection which will refund 75% of your non-refundable travel costs (think airfare here).  This is in addition to the typical medical insurance and lost luggage coverage.  Oh, they also give you $200 if you are your luggage is delayed for more than 24 hours.  It costs a little more than normal insurance, but I think it is worth it.