Our existing insurance policies (such as life insurance and medical insurance) cover us for areas similar to those covered by travel insurance. So, purchasing travel insurance without considering existing policies may result in money spent on duplicate coverage.
Besides studying the details of existing insurance policies, here are some other ways of lowering the cost of travel insurance:
Compare the cost of travel insurance from various insurers and agents. Commissions and other hidden charges may make a policy expensive without you even realizing it.
Ask your existing insurers for travel insurance. They often give you discounts by the virtue of volume.
Form a group of people traveling to the same destination. Group travel insurance is cheaper than individual travel insurance.
Increase your deductibles.
Purchase a customized travel insurance policy. Purchase a policy from an insurer that will tailor the policy to suit your individual requirements and circumstances. A one-size-fits-all policy may have covers that you might not need.
Most insurers that offer economical travel insurance exclude some crucial coverage from the policy. These may be:
· Default of carrier: Excluding this means that losses arising out of the tour operator or the airline going out of business will not be covered.
· Pre-existing medical conditions: Leaving this out might prove costly, as the probability of a pre-existing medical condition being aggravated by travel is higher than the probability of suffering from a new ailment.
Consider the excesses or deductibles before purchasing a travel insurance policy. Some policies charge you multiple excesses for the same claim event, making the policy expensive.