7 important travel insurance hacks for the holidays
Travelling is an expensive hobby. Even beyond the major costs of flight and accommodation the little things can really add up. Proper luggage and attire, food and entertainment and transit costs are often overlooked when we plan for a vacation.
Perhaps no travel expense is so forgettable as travel insurance. It’s something a lot of people (maybe willfully) neglect until the last minute. Then they go online or to their bank and select the first option they see.
This financial misstep is obvious, but it’s human nature to make. We not only focus on big costs first; we also focus on the parts of the trip we anticipate enjoying. It’s easy to justify a trip to a Caribbean resort when it’s -20 degrees every forsaken January morning, but the idea of signing an insurance form doesn’t warm the soul in quite the same way.
Even though travel insurance is not glamorous or enjoyable, it is an area of travel expense that can be cut backif you are willing to put in a small amount of time. Here are some tips on how to reduce the cost of travel insurance.
Shop around
This one is obvious, but not everyone follows through. When your flight costs $600 it’s hard to care about saving $20 by looking for a better insurance rate. Sometimes the savings are a little better than that, and even when not, it’s still worth glancing at. Just use a tool that doesn’t waste too much of your time.
Consider your travel frequency
Most of the time we buy travel insurance, we pay by the day. It stands to reason then that having coverage on days we are home is a waste of money. While this is mostly true, frequent fliers may benefit from purchasing annual protection. The per-day cost of annual travel insurance is minute, so if you jet-set enough you will actually find savings by paying a yearly fee.
Go domestic
You probably don’t choose a destination based on travel insurance, but Canadians that travel within Canada can forego the added expense. If you aren't committed to a particular destination then staying within the country is a great way to save money.
Use a travel rewards card
Many travel rewards cards offer some travel coverage when you use that card to book your trip. The type and extent of the coverage varies from card to card, so check out the various options. Anything is a bonus though, whether your entire insurance costs are covered or just the insurance of renting a vehicle when you arrive at your destination.
Get a group fare
Packaging travel insurance for multiple people can reduce the overall cost of the coverage. Pairs (it doesn’t have to be partners, just someone you travel on the same dates with) can buy tandem policies, while families and larger groups can even further reduce their rates. Not all providers offer all types of group discounts, but a little investigation can be quite beneficial, especially for groups of travellers greater than five.
Book before your birthday
Depending on your age, purchasing insurance before your birthday might save you a little money. In general, it is good to plan ahead and buy travel insurance before the last minute, but this is especially true of older travellers. Insurance costs increase with age, so booking before you blow out those candles can be a birthday gift you give yourself.
Go all-inclusive
OK, so going all-inclusive with insurance isn’t as great as going to an all-inclusive resort. Both make you want to drink, but only one satiates your desire for free. The other is…insurance.
Bundling medical, cancellation, damaged luggage insurance, etc., can be a great way to reduce the overall cost of your coverage. Not all these types of insurance are mandatory so avoiding certain ones is even thriftier, but if you want maximum coverage at a reduced rate, packing is the way to go.