3 travel insurance tips to save you money

Woman preparing to travel during Covid-19 pandemic.
Woman packing face masks and summer clothes into holiday suitcase in readiness of a covid outbreak. Woman preparing to travel during Covid-19 pandemic.

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When planning a nice vacation, consider factoring travel insurance into the total cost. That way, you won’t be tempted to skip it. While it may not seem like a necessity, it often can help you in the event of an emergency — especially if you’re traveling abroad.

Many travelers opt for comprehensive travel insurance, which has an array of benefits, covering everything from trip cancellations to lost luggage and beyond. With travel insurance, you’re able to request up to 100% reimbursement for unforeseen events or emergencies, depending on the coverage.

Fortunately, it’s easier than ever to shop for travel insurance. With Squaremouth, you simply insert your trip and traveler information and it crunches the numbers for you. Choose from a variety of travel insurance plans and packages to find the right one for you.

Travel insurance tips

If you’re looking to save money but still stay protected, then you’re going to want to find ways to find cheaper coverage and cut out any unnecessary costs. Here are three travel insurance tips that can help you achieve this:

  1. Compare travel insurance companies and plans
  2. Don’t overinsure your trip
  3. Don’t get Cancel for Any Reason coverage unless necessary

Compare travel insurance companies and plans

This tip may sound obvious, but it’s something travelers often forget. When purchasing travel insurance, you’re not just checking a box that says “add” when you book a flight, tour or hotel. It’s something that requires outside research.

Americans are spending around 35% more this fall than they were last year — with many experts placing blame on inflation for rising costs, according to a report from Squaremouth. That means, if you’re reading this and planning a trip, you should expect to pay a bit more. And if you’re paying more for trips, you’re going to want to insure them to prevent any extra costs.

If you’re in the market for travel insurance, you should head to an online marketplace like Squaremouth, where you can insert your specific information (trip and traveler details) and get dozens of travel insurance options unique to you. Just remember: Cheaper doesn’t necessarily mean less or worse coverage. Carefully review the full policy details and compare them to others. 

(Tip: Arrange the results from low to high price so you can find the cheapest deals first).

Squaremouth allows you to get quotes and compare more than 100 policies from 22 providers. They have also received nearly 115,000 reviews from customers, so you can view tips and get feedback from fellow travelers on how the service worked. 

Don’t overinsure your trip

There are four things that typically affect the cost of your insurance: Total trip cost, age, length of travel and coverage amounts. Out of all of these factors, there’s a clear one that you can control: coverage. 

The cost of travel insurance typically adds up to around 5 to 10% of your trip costs, according to travel insurance marketplace Squaremouth. If you’re spending more than that, chances are you’re overinsuring your trip and getting coverage you likely don’t need.

When viewing travel insurance policies, take a look at what type of coverage is included and determine if you really need it. 

For example, do you really need medical evacuation coverage if you’re traveling domestically — or does your current health insurance plan cover you? Do you need annual travel insurance if you’re only planning one or two trips? 

Take a look at the long list of benefits offered by travel insurance companies and see what’s included in a basic comprehensive plan and only get what you truly need to stay protected. Take your health, destination and itinerary into account. View your travel insurance benefits on Squaremouth now to see which you’d like included in your policy. 

Don’t get Cancel for Any Reason coverage unless necessary

When it comes to Cancel for Any Reason, proceed with caution. This may sound like something you’ll want — but it comes with a hefty price tag. In fact, this coverage can increase your premium by around 40-50%, according to Squaremouth

“Cancel For Any Reason is separate from Trip Cancellation. Travelers who upgrade their policy still have all of their policy’s Trip Cancellation benefits. If they cancel under Cancel For Any Reason, they can be reimbursed 75% of their prepaid and non-refundable trip costs. However, if they cancel for a reason that is listed as covered under their policy, they can be covered for 100% of their prepaid and non-refundable trip costs,” SquareMouth explains.

This type of upgrade requires preparation: You need to purchase it within 14 to 21 days of your first trip deposit.

Before you commit to buying this type of coverage, take a close look at the reasons that qualify for reimbursement under an average travel insurance plan that includes trip cancellation. Often those reasons are good enough to qualify for some money back.

The bottom line

Many people need travel insurance. It’s often well worth the price if you consider the amount of money you could potentially lose from a canceled trip, excursion or incident with your belongings. 

“Trip insurance is designed to cover the most common concerns that may impact a trip, including cancellations, medical emergencies, travel delays, and lost luggage. Common covered scenarios include an illness or injury preventing a traveler from departing, severe weather impacting their plans, or a medical emergency during their vacation, among others,” Squaremouth explains on its homepage.

If you are planning to buy travel insurance, just make sure you’re making the best financial decision for yourself and other potential travel companions.

When choosing a travel insurance provider be sure to evaluate the cost, coverage and the company’s status and reputation based on the thousands of available reviews. You can get started by comparing a multitude of insurance policies all at once with this simple marketplace.