5 Factors to Consider Before Buying Travel Insurance

What to Look for in Travel Insurance?

Travel insurance is one of those topics that understandably gets minimum consideration and is often relegated to the ‘may be’ item list of their vacation planning. However, medical emergencies, thefts, accidents and legal threats on foreign & domestic trips are enough to wreck your personal finances. In this case, nothing works better than trip insurance.

So, it makes sense to buy travel insurance which offers coverage against all unforeseen events including but not limited to loss of passport, baggage delay, trip cancellation and personal accident.

However, picking an appropriate plan is a daunting task owing to the dizzying variety of options available in the market. If you are struggling to find the perfect travel insurance for your trip, here are some tips about how to choose travel insurance:

1. Are You a Frequent Flyer?

   Frequent fliers are people who travel abroad more than 2-3 times a year. Whereas people who only travel once or twice in a year at most have different requirements.

   There are various plans to meet divergent needs- A single plan for a short trip, a multi-annual trip plan for frequent fliers and specially designed plans for students & senior citizens going abroad for a longer duration. The premium will also depend on the type of plan chosen. It’s obvious that a longer plan will cost more.

2. How Long is Your Trip?

   Longer stays abroad mean higher premiums. For instance, anyone travelling for a short 1-week trip to the UK will cost way less than someone who’s going for a month. The travel insurance company will need to provide an extended coverage for a longer trip which has a higher risk of raising a claim due to various concerns.

3. How Does Your Medical Report Look?

   Your age and health play a vital role in underwriting your international travel insurance plans. Someone in their 20s with no health issues will find better coverage and lower premiums as compared to a senior traveller. People with pre-existing ailments and illnesses often need to pay more premiums. Similarly, those facing problems related to alcoholism and drugs are covered with caveats and conditions.

4. Where Are You Heading To?

   Decide the cover size on the basis of the country or city where you are intending to travel. Most insurers offer different plans based on the geographic location you’re headed to. There are country-specific trip insurance plans such as Europe travel insurance, USA travel insurance etc. For instance, medical cost is significantly higher in European countries than in South Asian nations and this factor becomes critical for premium calculation. Choose your cover wisely keeping in mind the required sum insured.

5. What's Your Itinerary?

   Is it only sleep and sightseeing or do you have adventurous plans for the trip? If your itinerary includes sporting activities like skiing, water sports, trekking, etc., you better fill the gap in travel cover by getting special coverage by paying extra. Most insurance plans don’t cover any medical expenses caused due to adventure sports. Thankfully, you can always buy an adventure sports cover along with your comprehensive travel insurance plan to have a safe and adventurous time there.

Tips for Travel Insurance Purchase

While some of the basic factors are already clear by now, it’s good to know what to consider when buying travel insurance:

• Always compare different plans; look for different insurers as well as the plan variants available
• If wondering how to choose travel insurance for your trip, check-up public forums for reviews and the company’s overall reputation
• Always check the company’s claim settlement ratio before finalising your purchase
• Watch out for deductibles- especially if you’re trying to go for a plan that costs you very less travel insurance premium
• Always declare any pre-existing conditions that you have, this will help you find a plan that covers your health condition and won’t reject your claim related to this underlying condition.

Over to You,

Hopefully, these tips throw some light on how to shop for travel insurance. Don’t treat travel insurance as ‘just paperwork’. Conduct a systematic analysis of companies and their offerings like payment options, claim settlement ratio, the network of hospitals, discounts and freebies offered, before deciding on the plan. Evaluate risks you are likely to face on an upcoming trip and choose plan to avoid glitches during the trip.

After all, your dream of celebrating your birthday in London or experiencing the Australian Outback should not be derailed by events which are out of your control!