With increasing globalization; travel in both domestic and international niches has increased considerably for business as well as leisure purposes. Simultaneously, people have become far more aware of the benefits and security offered by a travel insurance plan. Hence, it has become an integral part of the checklist of any traveler.
Given that, it is understandable that most insurance companies have launched a myriad of travel insurance plans to lure you. Selecting the best fit from them can be overwhelming for just about anyone. We make the task easier by sharing a few smart tips that would help you choose the best travel insurance policy for your needs.
- Decide on your requirements
Before you even begin hunting any travel insurance plans; it is imperative to clearly define your needs and requirements. It could be a family trip or you might need an insurance plan for your frequent business trips. The destination and nature of your trip are the two most important factors deciding on the type of travel insurance you would need. Other important factors are the number of people traveling, various modes of traveling to be used while on the trip, intended activities on the trip like adventure sports, skiing, mountaineering, etc., the length of the trip, the value of goods taken on travel, etc. Getting your requirements clearly defined not only helps you in searching the right policy but also prevents you from paying for something that you don’t need.
- Decide on the extent of coverage required
Understand the first tip will help you get a clear idea of the extent of coverage you would be seeking in your Travel Insurance. For instance, any pre-existing medical condition is likely to attract a higher premium and even some conditions attached. Likewise, you might need to buy a separate add-on if you plan to indulge in any risky sports activities like skiing, water sports, etc.
You also need to decide if you need a single trip cover or an annual policy. These will help you hunt the right policy. You must also check what is already covered by your other policies like a home insurance policy. If it covers personal possessions; then you can exclude baggage insurance from your travel policy.
- Understand pre-defined limits for coverage
Many people are under the myth that the sum insured is the sole limiting factor to claim settlements. But it is not so. There are limits to the baggage cover, pre-existing medical conditions, expensive items taken on travel, risk factors of the area where you are traveling, etc. Depending on your needs, you can buy a few add-ons and ensure that you are covered for all situations. For instance, if you intend indulging in risky sports, you will need to buy an add-on cover.
- Understand inclusions and exclusions
Travel insurance plans can be highly deceptive. Thus, you must check out the details, especially the inclusions and exclusions of the travel insurance plan that you are seeking. Most of the time, you can talk to an insurance agent and get the policy tailored to your needs. Understanding inclusions and exclusions also prevent any kind of rude shocks and disappointments at the time of making any kind of claim.
- Purpose of the trip
The purpose of the trip is an important deciding factor on the type of travel insurance plan that you must choose. For instance, a family vacation trip would need a travel insurance plan vastly different from a student going to study abroad or a person intending to work abroad. Similarly, a business trip would have a separate cover than a leisure trip. Even if you are traveling for pleasure; more than three trips annually are best covered by an annual travel insurance plan.
- Get sensible about your excess
Popularly called as deductible, it is the amount that you must pay before the insurance plan covers the rest of the claim. A higher deductible might mean a lower premium but you must always ensure that the deductible amount is affordable to you at all times.
- Always compare various travel insurance plans
It is a must that you compare various travel insurance policies. The task is made easier by various online sites. The comparison helps you understand the benefits and required premium amount with any travel insurance plan and then select a policy with the right balance between premium amount and extent of coverage. You end up saving money while getting maximum benefits this way.
- Always buy from the right place
Most people make the mistake of buying a travel insurance policy from a tour operator, airline or even a travel agent. You are bound to end up paying more to them. It is always preferable to buy directly from the insurance company online so that you get the cheapest and reliable deal.
Wrapping up
The significance of travel insurance has risen considerably in recent times. Making a smart choice will keep you stress-free and travel feeling secure and protected.