The first step toward saving money when investing in trip insurance is to know the ins and outs of your policy and how costs are determined. You may need one type of policy for a domestic trip, but another policy for international travel.
Not all policies cost the same, which means not all policies offer the same types of coverage. Not to mention, travel insurance policies tend to cost more when they provide more coverage.
Generally, travel insurance prices vary depending on the following factors.
- The cost and length of the trip
- How much health care at your destination costs
- The medical conditions you want included in your policy
- The amount of coverage your policy provides
- How old you are and your potential risk
- Optional coverage, such as travel insurance cancellation for any reason
Once you know the type of trip insurance you want and your coverage amounts, you can begin comparing insurers and using these tips to save money while investing in an insurance plan.
Exercise Caution When Choosing Trip Insurance Through Booking Sites
Travel booking sites typically offer their own travel insurance to their customers. But while it may seem convenient to bundle your insurance with your airline tickets, hotel reservations, and so on, it may not be the right option for your needs.
Travel booking sites can be limited on the types of policies and insurers they offer. That means you could be missing out on a better deal, coverage options you need, or better coverage amounts for less. Instead, you may want to work directly with travel insurance companies to explore all your options upfront.
Don’t Over-Insure Your Trip
Don’t over-insure your trip when building a travel insurance policy. For example, if your reservations are refundable, there’s no need to invest in coverage for trip cancellation, delays, or interruptions. If you wouldn’t be charged for cancellations and delays, you’re not going to be reimbursed by the travel agency, which means you’re just throwing money away on a policy you don’t need.
Additionally, check the fees you might face for cancellations so you can appropriately determine the amount of insurance you’ll need.
Another example of over-insuring is travel medical insurance. If you’re traveling in the U.S., your regular health insurance may provide coverage in your destination area. Be sure to check with your own insurer before investing in medical insurance options.
Avoid Excessive Coverage Amounts
Like any form of insurance, you should take the time to determine the coverage amounts you’ll need. It’s not uncommon for insurance agencies to offer excessively large coverage amounts. For example, if your belongings are only worth $1,000, you probably don’t need $10,000 in coverage.
Another example is travel medical insurance. Unless you’re traveling somewhere remote and you need travel insurance international, or you have high risk-factors for illness and injury, you may not need excessively high coverage amounts. Keep these factors in mind when you’re building your policy.
Compare Travel Insurance Policies and Providers
You should always compare travel insurance policies and providers. No two policies are exactly the same, and insurers can provide widely different options, coverage amounts, and prices. Do your research ahead of time rather than going with the first agency you look into, and you could save yourself a lot of money on your policy.
Invest in Travel Insurance Early
Like any other type of reservation, travel insurance policies are commonly more expensive the closer to your trip you get. It’s common practice to choose a trip insurance policy early after you know your trip details and are making your other reservation, such as lodging and airline tickets.