Why Is Travel Insurance So Expensive? Can I Cheat It Cheaper?
Why is travel insurance so expensive for some people and not for others? Why are some destinations more expensive than others when it comes to travel Insurance? How come people say it is more expensive to get travel insurance if you are traveling to Canada or the USA? Sadly, the travel insurance industry isn’t as easy or transparent as the car and home insurance industry, and this is due to there being an over-saturation of travel insurance companies in the global market, and because travel insurance has more factors involved in terms of risk.
Do Not Buy Trip Cancellation Or Trip Interruption For Elements Where You Are Eligible For Refunds
Let us say you have bought transport to London, you bought a few nights in a hotel, you bought public transport pass, and you have bought your trip home. Let us assume these facts:
Trip/transport to London – You buy a cheap non-refundable flight
Nights in a hotel – Has a very generous refund policy
Public transport pass – Is not refundable because you are past the refund deadline
Trip/transport home – You buy a flight that partially refunds people who cancel
You may buy a full policy for your trip that includes trip cancellation insurance and/or trip interruption insurance, or you could have insured the non refundable parts and saved a bit of money. You may buy medical coverage for the entirety of your trip, but do you really need to cover your stays in the hotel? Plus, your travel insurance will not pay you if your hotel refunds you because travel insurance only covers your losses, and you do not make any losses when you get a refund.
If your hotel gives you a refund, then you will not be able to claim on your travel insurance. If your hotel has a fantastic refund policy, then why pay travel insurance to cover your hotel?
Consider Using Your Credit Card Rather That Paying For Certain Types Of Travel Cover
Credit cards are big business, which is why they are wrapped and strapped with laws and rules that may help you as a consumer. For example, some forms of travel insurance will help you get your money back if your travel supplier/travel company goes bust before your vacation. And yet, there are many occasions where paying with a credit card gets you the same protection. You may be able to save money on travel insurance by simply paying with your credit card.
Another example is where your credit card offers deals that may save you from buying travel insurance add-ons. For example, credit cards have great fraud protection, so you may be better off paying with a credit card rather than buying fraud protection add-on. We have also reviewed many credit cards that offer free car insurance overseas if you are renting a car.
In summary, there are times when you may save money by paying with a credit card instead of covering yourself with your travel insurance. I am not saying that you can pay with a credit card and avoid travel insurance completely. I am simply saying that you may lower your travel insurance costs by exploiting the protection offered by credit card companies.
Avoid This Crappy Advice About Cheaper Travel Insurance
I have read quite a few articles about how to lower the cost of travel insurance in case we missed something, and I saw a lot of crappy advice. Here is some of the crappiest advice that I present to you as a demonstration of the type of crap you need to avoid when you are looking for ways to lower your travel insurance costs.
Consider the likelihood that you will require medical treatment while on vacation
This advice is bull crap. You have no idea what injuries or illnesses you will get during your trip…that is why you buy travel insurance. People who have never been ill or injured in their lives may go overseas and be mauled by rabies-carrying bats.
Consider the potential cost of medical care in the country you are visiting
All overseas medical treatment is expensive. Even in Poland, Slovakia and Turkey where elective surgery is cheap, it still costs a bundle to have medical treatment and to stay in a hospital. Medical treatment is expensive, it is not like negotiating for the cost of cheaply made shirts. There is no country on the planet where medical care is so cheap that you shouldn’t get travel insurance. Either get travel insurance, or take the risk, but forget weighing up the cost potential cost of treatment because it is pointless.
The duration of your stay
Less time equals less money. This sort of thing grinds my gears. Who says, “Well, I wanted to go for 14 days, but I save $30 on my travel insurance if I go for 10 days instead.” If you are shortening the length of your vacation/trip to save a few bucks on travel insurance, then your priorities are askew.
Choose your destination wisely
What? What? What? I have read this piece of “Advice” on more than one online article. How is choosing your travel insurance going to affect your choice of destination? Are there people out there who say, “Well, I was going to visit the Maldives for a week, but travel insurance is cheaper if I go to a polluted Indonesian, so we are going there.”
I am not denying that your destination affects the cost of your travel insurance, but nobody is so nutty that they decide to take a trip one place, but then go another place because the travel insurance is cheaper.
Limit the amount of time you spend on your trip
I have read these snippet of golden advice is too many places. Who limits the time spent on their trip to save on insurance? Everybody knows that if they cannot afford longer, then they do not stay longer. People are not limiting the length of their trip to save money, they are already limited by their vacation/trip budget.
Here is a perfect example of what I mean when I say there is lots of dumb advice online:
“Don’t be surprised that travel insurance for a 2 week holiday is likely to cost double what it costs for a 1 week holiday.”
Isn’t that the dumbest and most condescending thing you have read this week? When I buy two apples, it costs me twice as much as buying one apple. Yes, if you stay two weeks, your travel insurance will cost you twice as much as if you stay one week.
Don’t pay for cover that you don’t need
How is this advice? Who genuinely goes out to pay for cover they don’t need? If it happens, then it usually happens by accident. Nobody goes out to buy moldy bread, and nobody buys cover they don’t need on purpose. This is another perfect example of the type of thing you read on these types of articles that some people think passes as advice, when it isn’t even information.