Balancing Your Vacation Budget: Travel Insurance vs. Excursions
If you had an extra $200 to spend on your trip, a fun excursion would probably win over travel insurance. That’s completely understandable.
Still, travel insurance plays an important role in protecting your trip. Most travelers want coverage that fits their needs without cutting into the rest of their vacation budget. The goal is simple: get the protection you need at a price that makes sense.
3 Ways to Save Money on Travel Insurance Without Sacrificing Coverage
You don’t have to overpay to get solid travel insurance coverage. A few smart choices can help lower your premium while still protecting your trip.
1. Only Insure What You Really Need
Start by calculating your prepaid, non-refundable trip costs. This is the amount you could lose if you had to cancel your trip.
Avoid over-insuring. For example, if your airline offers a voucher for cancellations and you’re comfortable using it, you may not need to include that cost in your insured total. On the other hand, if you prefer a cash refund, you can insure that expense and file a claim if needed.
Lowering your insured trip cost is one of the easiest ways to reduce your premium.
2. Adjust Emergency Medical Coverage to Fit Your Risk
Emergency evacuation coverage can range from $25,000 to $250,000 per occurrence. This benefit is important, but not every traveler needs the highest limit.
Consider your destination, planned activities, and overall health when choosing a coverage amount. Selecting a reasonable limit can help lower your premium while still providing strong protection.
3. Look for Family-Friendly Plan Inclusions
Traveling with kids? Some travel insurance providers include free coverage for children when they’re listed on a parent’s policy.
These plans can significantly reduce your total cost while still offering comprehensive coverage for the entire family. Always review plan details to confirm eligibility and limits.
When You Shouldn’t Cut Corners
Cutting costs can be helpful, but some benefits are worth keeping.
Cancel for Any Reason (CFAR) coverage offers added flexibility beyond standard trip cancellation. It allows you to cancel your trip for reasons not listed in your policy.
For example, trips during hurricane season or times of uncertainty may benefit from CFAR. This coverage typically reimburses up to 50% – 75% of your trip cost if you cancel at least two days before departure.
CFAR does increase your premium, but it can be a valuable option if flexibility is a priority.
Frequently Asked Questions
How can I lower the cost of travel insurance?
You can lower your premium by insuring only nonrefundable costs, choosing appropriate coverage limits, and comparing multiple plans to find the best value.
What factors affect travel insurance cost?
The main factors include your age, trip cost, trip length, destination, and the coverage limits you select.
Is it cheaper to buy travel insurance early?
Buying early doesn’t always lower the price, but it can give you access to time-sensitive benefits like Cancel for Any Reason and pre-existing condition waivers.
Can I exclude certain costs to save money?
Yes. You can choose not to insure refundable expenses or costs you’re willing to accept as a credit or voucher.
Do I need high emergency medical coverage?
Not always. The right amount depends on your destination, health, and planned activities. Many travelers can choose moderate limits and still be well protected.
Are there travel insurance plans that cover kids for free?
Yes. Some providers offer plans where children are included at no additional cost when traveling with insured adults.
Is Cancel for Any Reason worth the extra cost?
It depends on your needs. CFAR offers flexibility and allows you to cancel for reasons not otherwise covered, but it does increase your premium.
What happens if I over-insure my trip cost?
Over-insuring won’t increase your reimbursement. Claims are limited to your actual losses, so it’s best to insure only what you truly need.
Does travel insurance cover refundable bookings?
No. Travel insurance is designed to cover nonrefundable expenses. Refundable bookings typically don’t need to be insured.
What is the best way to compare travel insurance plans?
Use a comparison tool like InsureMyTrip to review multiple plans side by side, focusing on coverage, limits, and price to find the best fit.
Disclaimer: The information contained in this article serves as a general overview of benefits and should only be used for informational purposes. Refer to your individual certificate of insurance for specific coverages, exclusions and benefits. When in doubt, please contact one of our licensed agents for additional assistance.
Question
Does trip insurance usually get more expensive the closer to the trip you purchase?
By GeralynR - June 12, 2018
Answer
Unfortunately, there really is no way of determining this as each companies price their policies differently, and the rate is only guaranteed until 11:59 PM the date the quote is generated. The price may increase or decrease closer to departure.
By MattG - June 13, 2018