Travel insurance is meant to protect you from financial distress, not send you into it. Here are four tips on how to save money on travel insurance the next time you buy a policy.
DON’T: Insure More Than Necessary
Travel insurance is intended to cover the money you will lose if you cancel your trip. You only need to insure your prepaid and non-refundable expenses. If that amount increases after you buy a policy, you can call your provider and increase your insured trip cost.
If you can cancel your hotels for just a small penalty, insure that penalty cost rather than the full amount of the hotels. A lower trip cost generally means a lower premium, and you’re still covered for the amount you would lose if you canceled.
DO: Compare Your Options
Travel insurance policies are not one size fits all. Take a few minutes to research your choices using a travel insurance comparison site like Squaremouth. Determine what coverage you need, or call and speak to an agent if you aren’t sure.
DON’T: Upgrade to Cancel For Any Reason
While this upgrade offers greater flexibility to cancel your trip, it can increase the cost of a policy by as much as 40%, and it only reimburses a portion of your trip cost. There’s no reason to pay more if your concerns are covered by standard travel insurance.
The most common concerns we see are generally covered by standard cancellation policies, such as canceling due to an illness or a family member passing away. We only recommend Cancel For Any Reason if someone has a unique concern that they know isn’t covered by a standard Trip Cancellation policy.
DO: Buy the Least Expensive Policy
A higher price tag doesn’t necessarily mean better service or better benefits. Once you decide what coverage you need, go with the least expensive policy that meets your needs. There’s no need to spend more for a policy with $1 million in Medical Evacuation coverage. In most cases, $100,000 is more than sufficient for your destination.