There are different types of travel insurance simply because there are different types of travel and some carry a higher risk than others.
Although the vast majority of travellers never experience problems it's not hard to see that someone going skiing is statistically more likely to have an accident than someone who is sitting by a pool. However, there are other considerations that come into play for the insurers such as cost of treatment in the country that you are visiting. For instance the U.S.A. is known to be an expensive place to have medical care.
It's important to be honest about the purpose of your trip as you may find a standard policy won't pay out if you are injured taking part in extreme sports.
Choosing a travel policy that is designed for the type of holiday that you are taking means that you can get the best and most cost effective cover. By comparing the many providers online you may be able to save money over the insurance that a high street travel agent may offer.
It's also important to consider the equipment and expensive items or clothing that you may be taking with you as some travel policies will have a limit on value if they are lost or stolen.