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MoneyWatch: Managing Your Money
By Jennifer Earl
Edited By Matt Richardson
/ CBS News
If you're a routine traveler then you probably already know the benefits of travel insurance — from the potential savings from cancellations and delays to essential medical coverage, the list of covered reasons is numerous.
With travel insurance, you can get up to 100% reimbursem*nt for any travel-related expenses covered by your plan. It's essential for pricey vacations, especially international trips, and busy travel periods like holidays when costs are higher and there's a greater chance of potential issues.
There are some simple ways to save on travel insurance policies. One of the most important steps you can take to shave some money off your plan is to determine how much coverage you really need. Most of the time, a comprehensive travel insurance policy is the best route to take.
Insert your trip and traveler information into SquareMouth's site to view dozens of travel insurance policies that may fit your needs. Don't wait — start viewing your options now!
Determining how much travel insurance you need
When determining how much travel insurance you need, you should consider these factors:
- Cost
- Coverage
Cost
The cost of travel insurance hovers between 5% to 10% of your total trip costs, according to travel insurance marketplace SquareMouth. In 2019, before the COVID-19 pandemic hit, the average cost of a comprehensive policy with trip cancellation cost around $354, the site reports. Meanwhile, a policy without cancellation coverage hovered around $80.
When you're searching for policies, try to stay within that recommended range. If your total reaches above that, then you're probably paying too much.
"It's a common misconception that a more expensive travel insurance policy will provide better or more reliable coverage. However, the rating and reputation of a travel insurance policy does not factor into the policy's premium," SquareMouth explains, adding that it will "always recommend the least expensive policy that matches your coverage needs."
When you search for travel insurance policies, you can sort the listings from least to most expensive, ensuring you see the cheapest available options. Check it out.
Coverage
Coverage and cost go hand in hand. The more coverage you get, the more expensive your plan may be. Again, the majority of travel experts recommend getting the least expensive plan that still contains the coverage you need.
Typically, a basic comprehensive plan — which includes perks like trip interruption, delays and cancellations, medical emergencies and more — is more than enough for travelers.
Here's what you need to ask yourself before buying travel insurance:
- How much does my trip cost?
- What activities do I have planned?
- Who am I traveling with, and do they need coverage, too?
- Does my destination have any insurance requirements?
- Do I need medical coverage, and if so, how much?
- Do I need any travel insurance add-ons?
The answers to these questions can help you eliminate unnecessary coverage. 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.
Carefully review the full details of your travel insurance policy. To find a basic plan that's affordable, search SquareMouth now.
Shopping for travel insurance plans
One of the most effective ways to get competitive prices is to compare different providers and policies. SquareMouth says it has more than 100 policies available for travelers to compare at any given time.
To see what kind of prices and plans you qualify for, insert the following information:
- Trip information: Departure and return dates, destination
- Traveler information: Residence, citizenship, number of travelers and ages
- Total trip cost: Trip cost amount, deposit date, outstanding payments and more
Once you fill out SquareMouth's easy form, you can view the results and view dozens of different policies and prices. Remember to click "full policy detail" to get a full picture of the provider's offer. As SquareMouth suggests, buy the plan that is both affordable and covers all of your needs.
