How to keep the cost of travel insurance as low as possible (2024)

FAQs

How to keep the cost of travel insurance as low as possible? ›

Travel insurance cost depends directly on the trip cost. Knowing how to calculate the trip cost for travel insurance accurately will help you save money. For example, don't include expenses that you would incur on the trip when calculating the total trip cost for travel insurance .

Avoid travelling with expensive valuables

You're hopefully going abroad to relax and get away from the office. So consider leaving expensive valuables such as laptops, watches and jewellery at home. Travelling without these items can help to lower the cost of your travel insurance policy.

Unlike other aspects of your travel experience like airfares or hotel-room rates, the price of travel insurance doesn't increase the closer you get to your travel date. There's no financial penalty if you wait to buy travel insurance (except for those bonus coverages, of course).

According to NerdWallet analysis, the short answer to “How much does travel insurance cost?” is that it's typically 7% of your overall trip cost. For example, travel insurance will cost you an additional $70 (roughly) for a $1,000 trip.

Every plan is different, but the coverage amounts and benefits may vary. Determine how much you really need. For example, SquareMouth recommends international travelers get around $50,000 in Emergency Medical coverage and $100,000 for cruises or travel to remote areas.

Candace Baker, Car Insurance Writer

Travelers is so expensive because car insurance is expensive in general, due to rising costs for insurers. But at $639 per year, the average Travelers car insurance policy is actually cheaper than coverage from most competitors.

If you're wondering when you should buy travel insurance, the simple answer is as soon as possible. Ideally, you'll buy coverage no later than 15 days prior to your trip.

The golden rule is to buy your insurance as soon as you book your trip. This move will make you a savvy traveller because it means you're immediately protected against any pre-departure mishaps, like cancellations or health issues that prevent you from travelling.

This will depend on your situation, but if you are certain you will only travel once in the next 12 months, you should get a single trip policy for that holiday. If you are unsure of how many trips you will take, an annual policy may be more expensive, but it will give you the peace of mind of knowing you are covered.

The good news is that you can buy travel insurance at any point–even if you already started your trip. However, you might not get all the coverage you were hoping for. Your coverage options become more and more limited the longer you wait. The price typically stays the same no matter when you buy travel protection.

What is the best travel insurance company? ›

It can also help cover medical care and evacuation costs in an emergency. One way to predict your travel insurance cost is to look at your trip cost — most insurance policies cost between 3% and 5% of your total trip cost. Your Estimate Estimates are based on your trip cost.

We at the MarketWatch Guides team awarded Allianz Travel Insurance 4.1 out of 5 stars based on our provider review methodology. Named our pick for concierge services, Allianz offers 24/7 travel assistance through a multilingual team, which can help policyholders with travel and coverage issues while abroad.

While there are no AARP travel insurance products or discounts available for seniors, members can use the AARP website for trips and tricks on how to plan for international travel and information regarding how to choose the right insurance plan for older travelers.

Travelling against medical advice or to get medical treatment. If your doctor says it's not safe for you to travel, then you won't be covered. Similarly, if you go abroad to get planned treatment, sometimes called 'medical tourism', a standard policy will not cover this – you'll need specialist insurance instead.

How much travel medical insurance do you need? Squaremouth, a travel insurance comparison site, recommends buying at least $50,000 in emergency medical coverage for international travel. For travelers going on a cruise or to a remote destination, the site recommends at least $100,000 in coverage.

Most insurance providers offer flexibility with their plans and will allow you to make most changes. You just may have to pay a higher premium or fee. If you're trying to keep your policy costs down, it's best to compare prices and plans from multiple vendors, which you can do on TravelInsurance.com.

Travel insurance can give you extra protection if your holiday doesn't go as planned. This is very important if you are travelling independently because you may find yourself stranded with no way to get home and no rep to help sort out your holiday problem.

Watch for exclusions

All policies should include a list of sports and activities that you will automatically be covered for and those you will have to pay more for if you want them to be included. Be sure to check through these carefully as sometimes surprisingly ordinary activities such as 'trekking' may be excluded.

Travel insurance can be useful, but it's not always necessary. The key to knowing if you need travel insurance is figuring out your specific risks for any given vacation, then deciding if you can buy coverage that adequately protects you from any financial losses and pitfalls that might occur.