Travelling is exhilarating but not getting atravel insurance policy for your trip dampens your spirit or contort your pocket. Travel insurance protects your pocket in the event that bad things happen which costs you a lot of money, especially if you cancel the trip. The good news is that there are various simple procedures to reduce the cost of your international travel insurance without compromising on the extent of the policy.
Things to keep in mind to reduce premium cost
Having international travel insurance is a must when travelling on any trip. But for many, this seems an additional burden in terms of expenses along with flights, hotels and sightseeing. But the fact is that if some things are kept in mind and implemented, you can keep the travel insurance cost low and enjoy a stress-free trip. Let us see what can be done to save money:
Study the quote
While checking the quote from an insurance company, pay attention to the following:
Inclusions and exclusions that have to do with cancellation or interruption of travel.
The benefit limits for emergency health, lost baggage, and other related issues.
Any exclusion is based on certain health conditions or any adventurous activities that might not be possible once the policy has been purchased.
You can save money by ensuring you have coverage for what you need and not extra things.
Adjust your trip dates
The cost of travelling may change depending on the time you prefer to travel. Pricing rises during the holiday seasons since demand for such products or services is high during those periods. If feasible, it is advisable to book your trip several days ahead or at a different date of the week to enjoy a lower price.
When requesting a quote, most travel insurance companies provide a very transparent price table. This tool is specifically helpful in identifying cheaper travel dates. However, the question may be asked: Why not move the trip forward by a week or two if this does not interfere with other plans?
Take advantage of discounts:
Before finalising a policy, browse for any available discounts that allow you to lower premium costs:
1. Loyalty Discounts
There are occasions when some of the providers will offer special pricing to clients who have previously used their services.
2. Group Discounts
If you are travelling with a group of people, especially those close to you, like friends or family, it could be cheaper per person to opt for a group international travel insurance policy.
3. Promotional Discounts
Check for early bird and last-minute discounts that coincide with the times of the year that people might travel, such as holidays.
It is also wise to note that cell phone discounts can be stacked, thereby allowing for higher overall savings.
4. Increase Your Deductible
The easiest way to acquire cheaper premiums is to increase the deductible. The deductible refers to the amount of money that the policyholder must spend on medical bills before insurance starts to cover the costs. This effectively means that by covering more of the initial costs in an emergency, you can drastically cut down your monthly premiums for your insurance package.
The only thing you should avoid is to set your deductible to an unreasonably high level. Some people get travel insurance, but if the deductible is too high, then it basically means that you have no insurance at all and that is a problem. The goal is to have a healthy balance of how much you cut the insurance premium and how little of the actual amount you want to pay for the deductible.
Buy it online
Most of the time, when you buy travel insurance online, you will save some costs like an agent's and get a better rate. Also, buying insurance directly from the insurer will help more than buying from travel websites. These websites might offer a standard policy where you might end up paying for coverage you do not need. Thus, check which policy you are buying and from where to save money on travel insurance.
6. Drop unnecessary coverages
It should also be noted that you should read through the included coverages in order to ensure that you are not receiving any unwanted features. For instance, a standard international travel insurance policy might have coverage that you do not need due to the nature of the trip. If your hotels and flights are completely refundable, taking coverage for the same might not be needed. Your travel insurance policy coverage must be logical, and you must ensure that you are neither underinsured nor overinsured.
7. Secure insurance early
However, it has been observed that the rates vary from time to time, where, in most cases, the earlier you secure your travel insurance, the higher the chances of acquiring a lower rate. In the end, it is centralised to show that as travellers near their travel date, the rates rise, and the probability of cancellations also rises.
The highest premium reduction is achievable when the policy is bought within 1-2 weeks of the initial trip deposits. This contributes to keeping the rates as low as possible for given levels.
8. Manage trip costs
Premiums are partially calculated on total non-refundable trip-related expenses; therefore, minimising these expenses will lower your premium. It is recommended to book your flights and hotel accommodations with refund capability as it minimises your insurance-covered spending. If on the other hand cost is a factor, also consider reducing the duration of the trips in order to reduce the total costs incurred.
Select more expensive yet reasonable deductibles if you wish to pay less for your health insurance premium.
9. Safeguard the long-haul
Obviously, for heavy travellers, purchasing either annual or long-stay-specific travel insurance can provide more value than purchasing a number of single-trip policies. These plans cover you globally for a year or a specific duration chosen; they average costs across various trips. Thus, despite the fact that single trips might not necessarily need to be insured, you are getting the overall value of the insurance.
10. Go short and sweet
For those who travel once or twice a year, and for trips that are not extremely adventurous, then travel insurance may not make much sense in all circumstances. It is crucial to determine the cost of premiums for short and business trips, which have less risk in international travel. Choosing a plan as per the destination is always the ideal thing to do as for some trips a basic insurance plan with limited coverage might be beneficial.
Conclusion
Obtaining favourable travel insurance prevents the loss of vacation investments and relieves travellers’ anxiety. If you follow these money-wise tips, it will be easy to acquire an appropriate policy without much of a hassle while catering to the needs of the trip.
Disclaimer: The above information is for illustrative purposes only. For more details, please refer to policy wordings and prospectus before concluding the sales.
Disclaimer: This content is part of a marketing initiative. No TNIE Group journalists were involved in the creation of this content.