Many people believe that buying travel insurance is not a condition, but when unforeseen events happen, there is nothing that can help you cover the additional costs involved other than investing in it. Ensuring a trip is the only method in which people can enjoy their vacations without worrying about every single thing that could happen along the way, from natural disasters to delayed or even cancelled flights.

Considering that travel insurance is quite affordable, there is no reason why you shouldn’t invest in it before your departure. Depending on how long your trip is, where are you going, your age and some other relevant factors, the rate you pay for your travel insurance may differ, but it remains a better option than paying thousands of pounds on medical bills or other plane tickets. Researching and comparing different travel insurance policies is a must, and this article will give you more details on how to do it properly.

Answer these questions first

As you may already know, the insurance industry is worth billions of dollars, so there is no wonder why there are so many options to choose from. This wide array of options can be confusing for people who want to invest in travel insurance for the very first time. Many insurance plans cost more than a person would need for a short trip. Answering these questions should help you determine what kind of coverage you should opt for during your holiday:

  • What is your destination?
  • What means of transport will you use to get there?
  • What activities did you include in your holiday plan?
  • How long will you stay?
  • Who are you travelling with?
  • What is the total value of the goods you carry?

Each of the questions mentioned above will contribute to making a final decision regarding what travel insurance company to choose. The questions are meant to determine the risks you will be facing in your trip. The destination you will visit can be statistically more dangerous than another, thus making the insurance rate more expensive. The means of transport that you use to get to the destination, as well as the ones you use to travel during your holidays, can also increase the insurance rate.

If you are doing activities that are more adventurous and involve a higher risk of getting hurt, the insurance rate increases even more. By the same token, the more days you spend away from home, the more expensive the travel insurance is going to be. The number of members who will travel with you can also influence the final rate.

Annual policies versus single-trip policies

diary, pencil, glasses and camera at map

There are two different types of travel insurance policies you should know about: the annual one and the single-trip one. The annual policy covers each trip you have in one year. Compared to the normal process used for single-trip policies where you enter your destination and the start/end date of your trip to find out how much the insurance rate will cost, for annual policy covers you will enter what continent you will be visiting during that year. Some annual policies cover domestic trips only, while others cover non-domestic trips as well. Of course, there is a limit for each trip, which varies from one provider to another.

If comparing the annual and single-trip policies, one fact is clear – the price per trip insurance is much lower in the case of annual policies, but the overall cost can be too high to afford as an upfront payment. Annual policies usually don’t apply for more than one person, as in the case of family or group travel insurance policies. These are more suitable for people who are constantly travelling for leisure or business purposes. Single-trip policies are great for families that travel one or two times per year. Even though the overall cost for one trip is higher, the upfront payment is not as high, which makes this insurance policy more affordable.

Read the terms and conditions carefully

tourists in the snow with backpacks

The terms and conditions of your insurance policy can be very tricky. This is why you should always read them before paying your travel insurance rate. Comparing offers from multiple companies will let you see the differences regarding how much the travel insurance costs, what the insurance covers, whether there are any additional costs you should know about and so on.

Take your time to research all the potential options you have before finally deciding what insurance policy you are going to select. Keep in mind that the travel insurance’s high coverage limit differs from one company to another, especially for medical expenses. For instance, the average coverage rate is $100,000, but some companies offer a $20,000 coverage limit instead. Even though the insurance rate might be higher, the coverage limit will make a difference in the eventuality of an unfortunate event.

Supplemental insurance for gear

Man sitting on the mountain with backpack and headphone

In some cases, gear insurance is included in the travel insurance policy, but this is a happy case. Again, comparing multiple offers will be decisive when choosing the appropriate travel insurance company. If your travel insurance doesn’t cover the gear you carry in your trip, there is a high chance that you might want to pay for supplemental insurance. The value of your gear should be covered entirely by the insurance plan.

Otherwise, you will pay a considerable rate to protect the electronics or other equipment you may take with you. Again, you need to make sure that the maximum coverage is enough to pay for the entire value of your gear. If it is lower, you should reconsider your options. The same goes for other valuables that you will carry with you during the trip.

Final considerations

Taking into account all of the tips mentioned above, you are ready to make a good decision regarding travel insurance policies. The secret to choosing wisely is to invest time and attention in researching the potential options you have. Each insurance company comes with different offers that may or may not be convenient for your needs. Take your time to explore these offers until you find the perfect one.