Traveling whether locally or oversea involves a lot of risks. Travelers are more vulnerable to accidents. Besides, you may fall sick during your stay overseas. The above highlights the importance of purchasing a traveling insurance.
If you really want to get the best deal on your travel insurance, it is advisable that you know exactly what you want and shop around for it. Finding a great deal on travel insurance may not be easy for a first-time shopper. Here are some tips to help you get started.
Buy directly from a travel insurance company
Some people plan their travel with a travel agent. They buy everything from the agent including their travel insurance. Buying a travel insurance from a travel agent, airline or tour operator may seem to be very easy but it is more expensive.
The truth is that travel agent, tour operators, and airlines are not insurance companies and thus do not provide any insurance cover. They only work for the insurance companies. In other words, they purchase the travel insurance for you from the insurance company they work with and then charge you higher in order to make their gain after paying for the cover.
So, if you want to cut cost on your travel insurance, then it is advisable that you buy directly from the insurance company.
Choose a travel insurance that will meet your need
It is important that you purchase travel insurance that will be enough to pay for all the items you travel with should any accident occur during the travel.
For example, if you are traveling with an iPad of about $200 and you purchase a travel insurance that pays for a single item limit of $150 and has an excess of $250. Such a travel insurance policy is as good as nothing should anything happens.
A good travel insurance policy should cover at least $5m medical expenses across the globe, at least $2000 for baggage and belongings and at least $4000 for cancellation.
Be realistic about the excess
The excess refers to the amount the policyholder should pay for claims. For example, if you have an excess of $2000 and you have a claim of $5000, the insurer will pay $3000 and you will pay $2000. You should be sensible and realistic when agreeing on the excess.
The higher the excess, the cheaper the policy. But a travel insurance with a very high excess may not make any sense in event of loss even though the insurance will be cheaper. For example, if you buy the insurance at a cheap price for an excess of $5000, the insurance will not make any sense if you make a claim of $4900.
Another important point to take into consideration when shopping for your travel insurance is how the excess is charged. Some insurance companies charged per claim while some charged per benefit section. Being charged excess per claim looks better than excess per benefit.
Don’t include what is covered by your home insurance or other insurance
Before you agree on any travel insurance policy, you should make sure that it does not cover what your home insurance or any insurance is covering. The more items a travel insurance covers, the more expensive it becomes.
So, if you remove some items covered by your home insurance or any other insurance policy you have, you will much likely going to pay less. For example, personal possessions such as home appliances are covered by some home policies when the policyholder travels.
Some current accounts may also provide travel insurance coverage. So, if you have such a credit card or current account, there is no need purchasing another travel insurance.
Purchase annual travel insurance if you travel severally in a year
If you travel severally in a year, it will be better for you to purchase an annual insurance rather than buying a separate insurance for each travel you make. Buying an annual travel insurance in this regard is not just cost-effective but also time-saving.
You will be saved from the stress of going through the process of purchasing a travel insurance severally. However, annual travel insurance covers for travel of a maximum of a 31 day stay and not extended trip and backpackers.
Don’t pay for comprehensive sport cover if you don’t play risky activities
Comprehensive sport covers are suitable for travelers that engage in risky sports such as jet skiing, scuba diving, mountain climbing, horse riding and others. These risky activities are normally not covered by many insurance policies. So, you can only purchase comprehensive sports cover if you indulge in such games.
Include airline failure cover
It is advisable that you include airline failure cover in your insurance cover if you are an independent traveler, that is if you arrange accommodation and flight by yourself instead of purchasing a package. But before you purchase airline failure, check if airline failures are covered by your hotel policies especially if you are staying in a five-star hotel.
Check if there are exclusions in the policy
It is advisable that you check if there are exclusions in the policy you want to buy before accepting it. This is because some policies exclude pre-existing health conditions such as asthma, pregnancy, hypertension, diabetes, and others.
There are also policies that exclude elderly people who are 65 years and above. If you have any pre-existing health conditions, it is advisable to let your insurer know about it and find out if a suitable policy will be provided for you.