2008's top travel insurance tips

Too many people overpay for the travel insurance they need when they vacation, typically because they are unaware of the following money-saving tips:

Don’t bundle buying your travel insurance with buying your vacation package

Not only is the travel insurance coverage through your vacation provider often priced higher than if you were to get it elsewhere, but when you buy coverage at the same time as your vacation package you are generally not offered coverage or deductible options which can save you money. You’ll be offered instead, a one-size fits all policy often with an unlimited coverage amount. As a result, you’ll end up buying far more coverage than you’ll likely ever need and spending far more on a policy than you have to.

Just because you pay less by no means suggests you’re sacrificing coverage. Consider how, for example, through kanetix.ca you can opt to buy $2 million, $5 million or even $10 million in emergency medical coverage. Realistically $2 million is likely all you would ever need, but many people fear not having enough and opt for $5 or $10 million. An unlimited amount of coverage is simply excessive.

Buy one policy that covers the whole family

Look at getting one policy that covers the whole family, rather than buying one policy per person. Family rates are often available and are usually cheaper. As well, if you are travelling with children, keep an eye out for those insurers who will insure kids for free when a parent is insured along with them.

Buy an annual, multi-trip policy

If you travel two or more times a year, an annual, multi-trip policy will likely save you money over buying a single trip policy each time you vacation. Multiple-trip policies mean that for one annual rate, you will have emergency medical travel insurance coverage for every trip you take within the year after the policy is issued. Quotes for a variety of trip lengths are available too.

Know when an all-inclusive policy will save you money

If you need more than just emergency medical coverage, like trip cancellation & interruption coverage and loss of luggage coverage, consider buying one all-inclusive policy that typically includes these popular travel insurance options instead of buying a standalone policy for each. If you want all three, this is usually the way to go to save money.

…and when it doesn’t

If for example you only want emergency medical coverage and trip cancellation (because maybe you’ve packed everything you need into your carry-on so you’ve decided that ‘loss of luggage’ coverage isn’t necessary) then buying an all-inclusive means you will have bought and paid for coverage you don’t actually want. Watch what you’re buying and compare it to the cost of the standalone policies to see if in your personal situation buying individually will actually save you money.

Watch for loyalty incentives

Under certain circumstances, some travel insurers will offer you a discount, up to 5 per cent off your premium price, if you have purchased from them in the past.

Watch for ‘early bird’ specials

In late summer, typically August and September, some travel insurers may offer you a discount, up to 5 per cent off your premium price, if you buy your policy for travel you have booked within the next year. This is especially attractive for snowbirds, but typically applies to everyone.

Compare travel insurance rate quotes from competing insurers