A robust travel insurance plan can help pay trip medical expenses, reimburse you for deposits lost if you have to cancel the trip and much more. But you don\u2019t want the travel insurance purchase to break the bank.<\/p>\n
The biggest price factors in travel insurance are the total trip cost, your age, number of travelers and the length of your trip. The\u00a0average travel insurance cost<\/a>\u00a0is between 5% to 6% of your trip cost, according to a Forbes Advisor analysis of travel insurance rates.<\/p>\n Here\u2019s some advice about finding cheap travel insurance that still has good coverage.<\/p>\n As with most insurance, comparing policies from multiple companies can potentially save you hundreds of dollars. Travel insurance policies often include most of the same benefits, but the price and coverage amounts can vary considerably by policy, says Steven Benna, a spokesperson for Squaremouth, a travel insurance comparison provider.<\/p>\n A good place to start is to check out Forbes Advisor\u2019s rankings of the\u00a0best travel insurance companies<\/a>.<\/p>\n A travel insurance agent can also be helpful. That person can help identify the coverage you want and then price-shop the options.<\/p>\n You can avoid overspending on a travel insurance plan by understanding exactly what you should insure, says Benna. For example, it\u2019s important to understand that\u00a0trip cancellation insurance<\/a>\u00a0will only reimburse you for prepaid and non-refundable trip expenses. So don\u2019t buy coverage for the refundable parts of your trip, advises Benna.<\/p>\n For example, if you\u2019ve booked a hotel for five nights for a total of $5,000, but the cancellation penalty is $1,000, you would insure the $1,000. You can\u2019t make a travel insurance claim for amounts that are refundable.<\/p>\n Be cautious about buying coverage or upgrades that you likely don\u2019t need.<\/p>\n For example, many travelers buy a\u00a0\u201ccancel for any reason\u201d upgrade<\/a>\u00a0in addition to standard trip cancellation insurance. It adds an average of 50% to the cost of your travel insurance plan. The upgrade gives you partial reimbursement for trip costs if you cancel for a reason not listed in the base policy\u2014for example, canceling because you\u2019ve had a falling out with your traveling companion.<\/p>\n \u201cHowever, if your primary concern is covered by trip cancellation, such as canceling due to an illness or a family member\u2019s illness, you can be covered without spending the additional money to add \u2018cancel for any reason,\u2019\u201d says Benna.<\/p>\n Another example: you don\u2019t need\u00a0baggage insurance<\/a>\u00a0of $2,500 if you\u2019re packing $200 worth of T-shirts, shorts and a swimsuit.<\/p>\n You also may not need\u00a0travel medical insurance<\/a>\u00a0if you\u2019re not leaving the country during your trip. This may be especially true if\u00a0 you\u2019ll primarily be shopping, dining out and sightseeing and not participating in a lot of outdoor activities like hiking and biking. Your U.S. health plan will usually cover you if you become ill or injured during a\u00a0domestic vacation.<\/a><\/p>\n And if you\u2019re\u00a0booking a trip last-minute<\/a>, trip cancellation may be less important.<\/p>\n That\u2019s why it\u2019s a good idea to think about why you want travel insurance. Don\u2019t go with the policy with the most bells and whistles that you won\u2019t need. Instead, explore which coverage would benefit you the most.<\/p>\n If you\u2019re taking one or two trips a year, buying travel insurance for each one makes sense. But if you\u2019re planning multiple trips, buying a policy for each one gets inconvenient and expensive.<\/p>\n Annual travel insurance<\/a>\u00a0policies are primarily designed to provide travel medical insurance for multiple trips, and at a better overall price.<\/p>\n These types of annual policies can make it easier to buy just one policy instead of multiple ones and could be a travel insurance solution for people who plan to take multiple domestic flights. However, annual travel policies may not make sense if you\u2019re taking road trips.<\/p>\n Basic annual policies also offer limited\u00a0trip cancellation insurance<\/a>\u00a0and\u00a0trip interruption<\/a>\u00a0coverage.<\/p>\n Your credit card may offer travel insurance as a built-in perk. The key here is that you must charge the entire trip on that credit card.<\/p>\n \u201cThis benefit can include some cancellation coverage for trip expenses paid for with that card, in addition to coverage for luggage,\u201d says Benna. He points out that instead of paying for a travel insurance policy, you can save money by relying on a credit card\u2019s cancellation benefits.<\/p>\n If your trip expenses exceed the credit card\u2019s coverage limit, you can buy travel insurance for the remaining amount, notes Benna. This will make the policy less expensive than insuring the entire trip cost.<\/p>\n Related:\u00a0<\/strong>Best credit cards for travel insurance benefits<\/a><\/p>\n Cost should not be the only factor when you\u2019re buying travel insurance. A cheap travel insurance policy that lacks good benefits won\u2019t pay off in the end.<\/p>\n \u201cShop for value,\u201d says Lisa Cheng, a spokesperson for\u00a0World Nomads<\/a>, a travel insurance company. \u201cSome plans are priced low for a reason\u2014they could come with high deductibles and low benefit limits.\u201d<\/p>\n For example, Cheng says, you could buy cheap travel insurance and find there\u2019s only $5,000 for medical expenses when you have an $8,000 hospital bill from your trip. Comparison shop but don\u2019t skimp on coverage that is important to you, such as trip cancellation or travel medical insurance.<\/p>\n For some people, medical coverage matters most, and baggage insurance is less important, especially if they\u2019re not planning to pack anything valuable, Cheng says. Medical coverage is especially important if you\u2019re traveling overseas, because U.S. health plans may provide no coverage outside the U.S., and Medicare is not accepted outside the U.S.<\/p>\n Travel medical insurance limits vary by travel insurance policy. For instance,\u00a0GoReady<\/a>\u00a0offers $50,000 in medical coverage for travel per person, while\u00a0Cat 70<\/a>,\u00a0HTH Worldwide<\/a>,\u00a0Seven Corners<\/a>,\u00a0Tin Leg<\/a>\u00a0and\u00a0USI Affinity Travel Insurance Services<\/a>\u00a0provide $500,000 in medical coverage, depending on the policy.<\/p>\n Of course, there\u2019s a lot more that goes into travel insurance than medical protection, so make sure you get a policy that\u2019s right for you.<\/p>\n","protected":false},"excerpt":{"rendered":" A robust travel insurance plan can help pay trip medical expenses, reimburse you for deposits lost if you have to cancel the trip and much more. But you don\u2019t want the travel insurance purchase to break the bank. The biggest price factors in travel insurance are the total trip cost, your age, number of travelers … <\/p>\nBe a Savvy Travel Insurance Comparison Shopper<\/h2>\n
Understand Exactly What Can be Insured Under Travel Insurance<\/h2>\n
Avoid Unnecessary Travel Insurance Coverage<\/h2>\n
Consider Buying an Annual Travel Insurance Policy<\/h2>\n
Check Your Credit Card\u2019s Travel Insurance Benefits<\/h2>\n
Value of Travel Insurance Should be More Important than Cost<\/h2>\n