Scenario No. 1

You're backing your vehicle out of a crowded restaurant parking lot and you hit a car parked next to you.

What is covered: Your auto liability insurance covers you in all accidents, regardless of what state you are in. Most insurers recommend that you buy at least $100,000 for injury liability for one person in an accident, $300,000 for all injuries in an accident, and $100,000 for property damage in an accident (otherwise known as 100/300/100). This should protect you in the majority of accidents.

But even if you buy the minimum requirements in your home state and get into an accident in another state, your liability limits will automatically increase to the minimum limits in that state.

For example, let's say you live in Connecticut and you're vacationing in Rhode Island. If you carry Connecticut's minimum liability limits of 20/40/10 and you are found at fault in an accident, your coverage in Rhode Island will automatically go up to that state's minimums of 25/50/25. So if it costs $12,000 to fix the other person's vehicle, you would have enough coverage to pay for the accident even though you bought only the minimum Connecticut coverage of $10,000.

Scenario No. 2
You and your family are traveling out-of-state and are stopped at a traffic light in a busy intersection. Suddenly you are rear-ended by another driver. The damage to your vehicle is significant, and your spouse and two children have minor injuries.

What is covered: Who picks up the tab for your medical expenses depends on the state in which the accident occurred. If the accident does not occur in a no-fault state, the other driver's liability insurance would pay for your family's medical expenses and car damage.

If you live in a no-fault state — Florida, Hawaii, Kansas, Kentucky, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota, Pennsylvania, and Utah — and the accident occurs in a no-fault state, your personal injury protection (PIP) or medical payments coverage (MedPay) will cover the medical expenses of you or your family members. If your injuries exceed a certain amount, you may sue the other driver for pain and suffering.

If the accident occurs in a no-fault state and you do not live in a no-fault state, and thus you do not have PIP or MedPay, you will still get the minimum amount of PIP or MedPay protection based on what state you are in. Most auto insurance policies contain a section called "out of state coverage" or "financial responsibility and no-fault laws," under which you would automatically receive the required minimum PIP coverage if you were to get into an accident in a no-fault state. For example, if someone from Connecticut (not no-fault) were driving through New York (no-fault state) and got into an accident there, that driver would automatically get the minimum New York PIP coverage.

The question of who pays for property damage is more cut-and-dried, regardless of whether the crash occurs in a no-fault state. The damage to your car should be paid for by the other driver's liability insurance because he is at fault. If that person is uninsured, or is negligent in reporting the claim, you can file a claim on your own collision insurance (if you have it) and pay the deductible, or make a claim on your uninsured motorist property damage coverage (more on this below).

Scenario No. 3

While on vacation on Cape Cod, Mass., you are hit by a New Hampshire driver who does not have auto liability insurance because it is not required in New Hampshire. He is found at fault in the crash.

What is covered: You can make a claim on your uninsured motorist coverage to pay for any medical expenses you incurred as a result of the crash. Since the accident took place in Massachusetts, you are subject to the no-fault laws in that state, which restrict pain-and-suffering lawsuits. According to Massachusetts law, you have the right to sue the New Hampshire driver if you sustain more than $2,000 in medical expenses.

If the New Hampshire driver refuses to pay for your property damage, you can make a claim on your collision coverage (if you have it). You would have to pay your deductible, but your insurance company could subrogate — or seek payment from — the other driver, and you may get your deductible back. Or if you have uninsured motorist property damage (UMPD) insurance, you could make a claim on that coverage. If you don't have collision or UMPD, you can sue the other driver to get your car fixed.

As for the New Hampshire driver, he is going to have to pay you out of his pocket to get your car fixed. While New Hampshire does not require its motorists to buy liability insurance, it does require that they show "financial responsibility," meaning they must show they have the financial means to pay for an accident they cause. This often entails posting a bond with the state Department of Motor Vehicles after you get into an accident that was your fault. If you fail to show financial responsibility, your license is subject to suspension.

One other wrinkle: The New Hampshire driver can be cited by a police officer for driving without car insurance in Massachusetts. If you don't have auto insurance and drive in a state where it's required, you'll have to pay a fine.

Scenario No. 4

Your 10-year-old son is running on the beach and slips and falls on some rocks. His leg is badly cut and needs stitches. A visit to the emergency room is in order.

What is covered: Most health insurance plans cover visits to the emergency room, no matter where the accident happens. That means if you live in Florida and are vacationing in California, you can go to a hospital in California and your emergency room visit will be covered.

However, you might not be covered if you have a managed care plan and require extensive medical attention. For example, if your son had a serious head injury when he fell on the rocks and needed to stay for several days at an out-of-network hospital, your health plan may not pay for that extended stay. It's possible that your HMO might send you to an in-network hospital and pay for the expenses if you stay there.

You can check with your benefits administrator at work or contact their HMO directly prior to leaving for vacation, so you know what's "in-network." Also, have the phone number for your HMO and your insurance card handy in case a medical question arises and you need to contact them.

Scenario No. 5

You come back from the beach and find that your hotel room has been broken into and ransacked. Everything you brought on vacation with you has been stolen.

What is covered: Most of your losses may be covered under your homeowners insurance. Jeanne Salvatore, a spokesperson for the Insurance Information Institute, says that most homeowners policies will cover all of your belongings if they are stolen "off site," meaning stolen while they are away from your home.

However, some policies will cover only up to 10 percent of your coverage. For example, if you have $60,000 worth of belongings covered under your homeowners insurance, only $6,000 would be recoverable under your policy if they were stolen on vacation.

On your existing home insurance policy, you may also buy special endorsements for such items as camera equipment or expensive jewelry. Some policies will also reimburse you for cash stolen up to a particular amount. For example, if $500 is stolen from your room, some policies may reimburse you $200.

A final note before you depart

Vacation packing, phone calls and car preparations don't allow much time for insurance policy reviews. But knowing your insurance options before an accident occurs will go a long way in relieving stress if the unexpected happens.