Travel insurance is a vital part of any enjoyable vacation or business trip. True, nobody likes to pay more to have a good time, but comparing different options lets you select a policy that meets your budget constraints and satisfies your love of adventure.
Of course, it also helps to arm yourself with knowledge about what you should expect. Here are a few simple tips to get you started.
What Decides Travel Insurance Pricing?
While some sites and providers give ballpark estimates concerning how much of your total trip budget you’ll devote to travel insurance, the real costs vary widely based on your circumstances. For instance, a budget plan may run you about 3-4 percent of your trip cost, yet fail to provide satisfactory coverage. High-end options with all the necessary perks, on the other hand, could account for around 10-15 percent of your travel budget.
Determining Trip-Specific Costs
Most insiders agree that certain factors have a clear influence on pricing. For vacation and medical packages, these may include:
- How long the trip is and where you’re headed,
- Optional coverages,
- The ages and number of people needing trip insurance, and
- The overall cost of the trip.
Some travelers pay more for insurance due to their higher risk. For example, even if you’re not planning on enjoying a skydiving trip in the remote Amazon, the fact that you have a unique medical condition that requires special attention could force you to purchase extra protection options.
More often than not, additional policy features are associated with higher costs. If you’re diligent about comparing, however, you may be able to offset the added financial burden by combining terms or seeking out special discounts.
Planning Your Ideal Coverage
Travel insurance benefits and terms are highly customizable. For instance, say you think you may have to suddenly return to deal with a potential emergency back home. In such a case, you’d probably be better served by a higher-cost plan with builtin cancellation coverage. If you feel the default health insurance coverage is insufficient or the medical deductibles are too high, you could upgrade for more protection.
These seemingly minor changes make a difference. Reading the terms and conditions each policy includes before choosing is a great way to perform a price-aware comparison and enjoy a successful trip.