How to Be a Smart Travel Insurance Shopper
When it comes to travel insurance, comparing policies from different companies can potentially save you a significant amount of money. According to Steven Benna, a spokesperson for Squaremouth, a travel insurance comparison provider, while most travel insurance policies offer similar benefits, the price and coverage amounts can vary greatly.
If you’re looking for a good starting point, Forbes Advisor provides rankings of the best travel insurance companies that you can check out.
Another helpful resource is a travel insurance agent who can assist you in identifying the coverage you need and comparing prices.
Understanding What to Insure with Travel Insurance
To avoid overspending on your travel insurance plan, it’s important to have a clear understanding of what should be insured, advises Benna. For instance, trip cancellation insurance only covers prepaid and non-refundable trip expenses. Therefore, there’s no need to buy coverage for parts of your trip that are refundable.
Let’s say you’ve booked a hotel for $5,000, but the cancellation penalty is $1,000. In this case, you would only insure the $1,000 since you can’t make a claim for refundable amounts.
Avoid Unnecessary Coverage
Be cautious about purchasing coverage or upgrades that you don’t actually need. For example, many travelers opt for a “cancel for any reason” upgrade in addition to standard trip cancellation insurance. However, this upgrade can significantly increase the cost of your travel insurance plan.
Benna suggests considering whether your primary concerns are already covered by trip cancellation insurance. If they are, there’s no need to spend extra money on the “cancel for any reason” upgrade.
Similarly, evaluate whether you truly need baggage insurance or travel medical insurance based on the nature of your trip. If you’re not leaving the country and won’t be participating in outdoor activities, your domestic health plan may already provide sufficient coverage.
Lastly, if you’re booking a last-minute trip, trip cancellation insurance may be less important.
Instead of going for the policy with the most features, take the time to determine which coverage would be most beneficial for your specific needs.
Consider an Annual Travel Insurance Policy
If you’re planning multiple trips in a year, buying travel insurance for each one can become inconvenient and expensive. In such cases, an annual travel insurance policy may be a more practical and cost-effective solution.
These policies are primarily designed to provide travel medical insurance for multiple trips at a better overall price. They eliminate the hassle of purchasing separate policies for each trip. However, annual travel policies may not be necessary for road trips.
Basic annual policies also offer limited trip cancellation and trip interruption coverage.
Check Your Credit Card’s Travel Insurance Benefits
Some credit cards offer built-in travel insurance benefits, but it’s important to note that you must charge the entire trip to that credit card to be eligible for these perks.
According to Benna, these benefits can include cancellation coverage for expenses paid with the card, as well as coverage for luggage. By relying on your credit card’s cancellation benefits, you can save money on a separate travel insurance policy.
If your trip expenses exceed the coverage limit provided by your credit card, you can still purchase travel insurance for the remaining amount. This will make the policy more affordable compared to insuring the entire trip cost.
Value Should Trump Cost When Choosing Travel Insurance
While cost is an important factor, it shouldn’t be the sole consideration when purchasing travel insurance. Opting for a cheap policy with limited benefits may not be worth it in the long run.
According to Lisa Cheng, a spokesperson for World Nomads, it’s crucial to shop for value. Some low-priced plans may come with high deductibles and low benefit limits. For example, you might find yourself with a $8,000 hospital bill but only $5,000 in medical expense coverage.
Consider what coverage is most important to you, such as trip cancellation or travel medical insurance. Medical coverage is especially crucial when traveling overseas, as U.S. health plans often don’t provide coverage outside the country.
Travel medical insurance limits vary by policy, so it’s important to compare different options. Some policies offer $50,000 in coverage per person, while others provide $500,000, depending on the specific plan.
Quote from the Website Author: “Comparing travel insurance policies can save you hundreds of dollars while still providing the necessary coverage for your trip.” – Forbes Advisor
Conclusion from the Website Author: Choose travel insurance based on your specific needs and prioritize value over cost. Understand what should be insured and avoid unnecessary coverage. Consider an annual policy for multiple trips and check your credit card’s travel insurance benefits. Remember that the value of travel insurance is more important than its cost.
George Barham, an accomplished journalist and avid gambling enthusiast, serves as the esteemed Editor-in-Chief at fly-to-australia.com, Australia’s leading source for comprehensive gambling news and insights. With an unwavering passion for both the written word and the ever-evolving world of betting and gaming, George brings a wealth of knowledge and expertise to the helm of our editorial team.
