A comprehensive travel insurance plan can do a lot of things, like paying for your trip’s medical costs and reimbursing you for lost deposits if you have to cancel. However, you don’t want the cost of the travel insurance to be prohibitive.
The total cost of your trip, your age, the number of travelers, and the duration of your vacation are the main determinants of travel insurance costs. A Forbes Advisor survey of travel insurance premiums found that the average cost of travel insurance is between 5% and 6% of the cost of your trip.
Here are some suggestions for locating inexpensive travel insurance with enough coverage.
Be an Astute Comparison Shopper for Travel Insurance
Like with any insurance, you may possibly save hundreds of dollars by comparing coverage from several providers. According to Steven Benna, a spokesperson for Squaremouth, a travel insurance comparison website, travel insurance policies frequently offer the majority of the same advantages, but the cost and coverage quantities might differ significantly between policies.
Check out Forbes Advisor’s list of the top travel insurance providers as an excellent place to start.
An insurance broker for travel can also be beneficial. They can assist you in choosing the coverage you need and in comparing prices for the various options.
Be aware of the specific things that travel insurance can cover
Understanding exactly what you need to be covered will help you save money on travel insurance, according to Benna. It’s crucial to realize, for instance, that trip cancellation insurance will only pay for paid-for, non-refundable travel expenses. Benna thus advises against purchasing coverage for the travel expenses that are refundable.
For instance, if the cancellation fee on a hotel reservation for five nights totaling $5,000 is $1,000, you would insure the $1,000. Money that is refundable cannot be claimed under travel insurance.
Avoid obtaining unnecessary travel insurance
Avoid acquiring coverage or enhancements that you are unlikely to require.
For instance, in addition to basic trip cancellation insurance, many passengers purchase a “cancel for any reason” upgrade. Your travel insurance coverage will cost you an average of 50% more. If you cancel for a reason not covered by the base policy, such as a disagreement with your traveling companion, the upgrade allows you to receive a partial refund of your trip expenses.
Benna explains that you can be covered without spending extra money to include “cancel for any reason” if your main fear is trip cancellation, such as canceling due to illness or the illness of a family member.
Another illustration: If you’re only bringing $200 worth of T-shirts, shorts, and a swimsuit, you don’t need $2,500 worth of baggage insurance.
Additionally, if you aren’t leaving the nation while on your trip, you might not need travel medical insurance. This may be especially true if you plan to spend most of your time touring, dining out, and shopping rather than engaging in many outdoor activities like bicycling and hiking. You will typically be covered by your U.S. health insurance if you get sick or hurt while traveling within the country.
Additionally, trip cancellation might not be as significant if you make a last-minute booking.
For this reason, it’s a good idea to consider why you need travel insurance. Avoid choosing the insurance plan with the most features you won’t use. Investigate which type of coverage will work best for you instead.
Think about purchasing a yearly travel insurance policy
Purchasing travel insurance for each trip makes sense if you only take one or two per year. However, purchasing an insurance for every trip you intend to take becomes cumbersome and expensive.
Annual travel insurance plans are primarily created to offer multi-trip travel medical insurance at a lower total cost.
These annual policies can make it simpler to purchase a single policy rather than several, and they may be a good option for travelers who want to take a lot of domestic flights. However, if you frequently take road trips, annual travel policies might not make sense.
Basic yearly policies also provide limited travel interruption and trip cancellation insurance.
Examine the benefits of your credit card’s travel insurance
The built-in benefit of your credit card may include travel insurance. The important thing to remember is that you must use that credit card for the entire trip.
In addition to coverage for luggage, this perk may also provide some cancellation protection for travel expenses made with that card, according to Benna. He makes the point that using a credit card’s cancellation advantages can help you save money compared to purchasing travel insurance.
You can purchase travel insurance for the balance if your vacation costs are higher than the credit card’s coverage cap, advises Benna. As opposed to covering the full cost of the trip, this will make the policy less expensive.
Value of Travel Insurance Should Take Priority Over Price
When purchasing travel insurance, price shouldn’t be your only consideration. A cheap travel insurance plan with poor coverage won’t be worthwhile in the long run.
Shop around, advises Lisa Cheng, a representative for the travel insurance provider World Nomads. Some plans may have large deductibles and modest benefit caps, which is why they are priced so affordably.
Cheng gives the example of purchasing inexpensive travel insurance and discovering that there is only $5,000 available for medical costs when you had a $8,000 hospital bill from your trip. When comparing coverage, don’t cut corners on aspects that are crucial to you, such trip cancellation or travel health insurance.
According to Cheng, some customers prioritize medical coverage over baggage insurance, especially if they don’t intend to bring any pricey items. Medical insurance is crucial if you’re traveling abroad because Medicare is not recognized outside of the United States and American health insurers may not offer coverage elsewhere.
The maximum benefits covered by travel medical insurance vary per policy. GoReady, for instance, offers $50,000 in travel-related medical insurance per person, while Cat 70, HTH Worldwide, Seven Corners, Tin Leg, and USI Affinity Travel Insurance Services, depending on the policy, give up to $500,000 in medical protection.
Make sure you purchase a coverage that is appropriate for you because travel insurance covers a lot more than just medical expenses.