Home Business Insights & Advice How to save money on travel insurance

How to save money on travel insurance

by John Saunders
20th May 22 11:57 am

Most of us have health insurance, house insurance, and even life insurance. However, not many people are insured for their travels. While insurance is something that we buy and hope we never use, it is essential as it can save you money and offer peace of mind.

Although having a travel insurance cover is optional in most places, some countries don’t allow you to enter or clear the migration process if you don’t have it. But, travel insurance can sometimes be expensive, and many people spend more than required when buying a travel insurance plan.

It’s why planning is recommended when shopping for travel insurance plans. Here are some tips on saving on travel insurance while ensuring that you get the best possible risk cover.

1. Decide on which travel cover type to buy

Travel insurance companies offer three types of cover to their clients. You can buy the annual/multi-trip cover, recommended for short trips duration throughout the year. You can also get a single trip cover for a short duration trip or a backpacker/extended trip cover that offers coverage for a single trip that lasts more than a month.

Also, note that these insurance policies can be broken down depending on the destination. For instance, individuals travelling within their country of residence will pay differently than those travelling outside. You can take a European-only cover, for example, if you live in Europe and don’t have trips planned outside Europe. If you’re heading to far places, expect to pay more.

2. Compare different plans

Before purchasing a travel insurance plan, determine the number of days you will travel and the destinations you plan to cover. These factors and the number of people you’ll travel with will influence the right premium for you,

Although you shouldn’t pick a plan based on price alone, it’s usually advisable to compare different premiums before buying a policy. Look at the coverage offers and ensure that the price is worth the benefits. Also, check the hospitals accepting cashless payments worldwide before purchasing an insurance plan. Sometimes it’s better to buy a higher premium and enjoy more coverage than buying a small premium that may leave you uncovered when the need arises.

3. Get medical coverage on your credit card

Most credit cards offer travel insurance coverage for the credit owner. Some even offer protection to your family members as well. So before buying a plan, ensure that you are aware of the benefits covered under your plan and avoid purchasing them again from your insurer.

Additionally, check the perks that you have on your credit card. Sometimes the provider may cater to the cost of a flight delay, baggage loss, or trip interruption in your travel insurance.

4. Ask about discounts for bundled products

Most providers usually offer discounts when you combine auto and home insurance. The same principle also applies to travel insurance. If you already have a policy with insurance, there is a high chance that you’ll get a discount when you purchase a second one. So if this is the case, consider buying a travel insurance plan from your current provider.

Additionally, you can also save hugely by combining covers. Instead of buying a policy for one person, buy as a couple, family, or group. Family or group travel insurance policies are cheaper than individual insurance. However, if any person in the group has a pre-existing medical condition, it’s better to get separate policies.

5. Don’t buy insurance from travel sites

Hotels and airlines offer you travel insurance when you book their services. But, while this may seem convenient, you could be buying more than you need. These sites offer a fixed insurance plan for all their customers. But in the real sense, insurance needs to be customised as per individual’s needs. Therefore, work with your insurance of choice to get a plan that is right for your needs and budget.

Additionally, opt for refundable bookings. Note that some air tickets and hotel bookings are refundable. So please evaluate your bookings to ensure that you get a good deal. If you have refundable bookings, buy insurance only for the non-refundable ones. This will lower your coverage and reduce the amount you spend on your travel insurance premium.

6. Choose the right level of coverage for you

Providers offer three levels of travel insurance; basic, medium, and comprehensive. Each of these covers has different benefits and charges different premiums. The more the benefits, the higher the amount will be. So think long and hard about the cover that is right for you. to help you decide, ask yourself these questions;

Why do you need the cover for? Are you taking it to cover medical expenses or trip cancellation costs? Decide the benefits you need as they vary from person to person.

Do you feel comfortable with the level of cover protection? Some people will only be comfortable travelling if they have a cover that provides comprehensive protection. Others only want a basic cover that offers protection for a few worst-case situations and take chances for the rest of the holiday. In short, think of the risk level you can tolerate before buying a policy.

How much is your budget? Cost is an essential factor when buying an insurance plan. Determine the amount you can afford to pay for travel insurance without straining your finances.

Final thoughts

Choosing the right travel insurance plans narrows down to you as an individual. Your situation isn’t the same as another person’s. Therefore, you need to consider your needs when shopping for this insurance. The above tips can help you save on travel insurance. Please remember that it is never a good idea to travel without insurance.

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