4 Travel Insurance Mistakes to Avoid This Summer

4 Travel Insurance Mistakes to Avoid This Summer

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ST. PETERSBURG, Fla., May 23, 2024 –  Even the most seasoned travelers can make mistakes booking and protecting their vacations. Leading travel insurance comparison site, Squaremouth, reveals 4 mistakes travelers make when selecting a travel insurance policy, and explains what they can do to find the best coverage for their summer trips.

Mistake 1: Skipping Trip Cancellation Coverage

Canceled trips are the most commonly paid out travel insurance claim, with an average payout of $5,000. With travel more expensive than ever this summer, it’s even more important for travelers with prepaid expenses to protect their financial investment in their trip.

Foregoing Trip Cancellation coverage could lead to hefty losses should you encounter travel disruptions that prevent you from taking your trip, such as an illness, extreme weather, or delay of a travel carrier.

Expert Tip:  While it may feel like you are saving up front money by skimping on coverage, if your travel plans include high non-refundable trip costs, consider investing in a comprehensive travel insurance policy that includes Trip Cancellation benefits.

Mistake 2: Over-Calculating Non-Refundable Trip Costs

Trip cost is one of the main factors that can drive up the price of a policy. You have the choice of insuring all, some, or none of your trip costs, but you can only be covered for prepaid and non-refundable expenses.

Expert Tip: Insure only the trip cost you would lose if you cancel. For example, if you just pay a 50% penalty to cancel a hotel reservation, insure that amount rather than the full cost of the hotel to get a less expensive policy.

Mistake 3: Overlooking the Least Expensive Policies

When comparing travel insurance, more expensive does not mean better. Many travelers will rule out a policy just because it’s the cheapest, but in many cases, the cheapest policy may have the same amount of coverage as a more expensive plan.

Expert Tip: Pick the least expensive policy that meets your coverage needs. When shopping for a policy, first decide how much coverage you need for your trip, and then compare plans to select the least expensive policy with the best coverage for your needs.

Mistake 4: Waiting Too Long to Buy a Policy 

While many travel insurance companies allow you to purchase coverage up to a day before your trip, buying late in the game may lead you to miss out on coverage. Travel insurance only covers the unforeseen, so as a general rule of thumb, buying earlier means a longer coverage period should something happen before your trip.

Expert Tip: If you are buying a comprehensive policy, consider purchasing it as soon as possible after making your first trip reservation.