Selecting and buying a travel insurance policy might seem like an easy task. Type it into Google, select the cheapest plan and you’re good to go! Right? Well, not exactly. It’s important to research and understand the different types of travel insurance that are out there before you go with a policy, because if something unexpected does happen on your trip, you want to be covered. Here are 6 factors to consider:
If you need travel insurance for multiple people in your family, you can save some money. It’s cheaper to buy insurance for a family or a couple under the same policy. It’s harder to find plans that cover multiple people traveling separately, but it’s possible.
If you travel often during the calendar year, it could be cheaper for you to buy a multi-trip plan. This costs more than an individual trip plan, but covers you for the entire year. A great advantage of this is that you’re covered continuously and only have to shop for one plan.
Depending on your personal needs, you might want to buy extra coverage in certain areas not covered by your plan. You might want extra coverage if you plan on bringing valuables in your luggage, for example. Or if you’re traveling somewhere with a higher chance of the hotel being closed due to inclement weather, you can get extra coverage in that area.
Sports and Activities
This is a major factor in selecting a travel insurance policy. What kinds of sports and activities will you be doing on your trip? What is the risk factor for those activities? If you’ll be scuba diving or motorbiking in Thailand, you might want to pick an insurance plan with more coverage in case of an accident. But if you’ll be relaxing in a spa for your holiday, it’s probably not necessary.
Most plans have rather standard limits of coverage, and are priced accordingly. So don’t fall for plans that have super high limits, just because it sounds great- because it’s rarely necessary, and you’ll pay highly for it. For example, trip cancellation has a standard limit of around $3,000; it shouldn’t cost much more than that if this happens to you. You probably won’t need a plan with a trip cancellation limit of $5,000 or more so make sure you only pay for what you need.