Monday, November 5, 2007

How to Get a Cheap Travel Insurance?

Insurance is getting costlier by the day. In case you do not buy an insurance you may end up paying a lot more and may even end up bankrupt. This is a catch-22 situation, either way you have to pay. However the smart individual can reduce the amount he pays on insurance to a great extent by keeping in mind few things.

Buy travel insurance online-Buying travel insurance online can save up to 20% of the cost as you do not have to pay to an agent. Most travel insurance companies encourage buying online as it reduces their overhead costs also.

Group travel insurance-If you are traveling to a place in a group, it is smarter to buy group travel insurance or a cheap family travel insurance as the premium will be marginally higher than for an individual. However if all individuals buy separately they will end up paying lot more than if they had bought a group cover.

Existing insurance covers-Most health insurance covers in the United States provide for health insurance in foreign countries also. Hence check up whether your existing health insurance provides cover and to what extent and then buy a travel insurance policy. Also check up whether your home insurance covers and auto insurance covers. Most auto insurance covers do not cover for driving in foreign countries. The idea is if you are already covered partly, then buy the travel insurance to cover the remaining items you wish to, rather than paying for the entire cover.

Deductible-Deductible is the amount of the bill you pay and the rest of the bill is paid by the travel insurance company. The higher the deductible, the lesser the premium.

Co-insurance-Co-insurance is the percentage of bill that you will have to pay when claiming costs under an insurance cover. The higher the co-insurance the lesser is the premium. It is a matter of striking the balance between deductible, co-insurance and premium to suit your pocket.

2 comments:

Ernesto said...

Is it necessary to have a travel insurance policy ? What is the need and benefit of having this policy. Its really difficult to afford insurance policy because of the higher rate, even a person can't afford the most important insurance policies like life and health. And this will be hard to have. Using the tips one can think of making it as it will cost lesser.
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John George said...

Wow... Great information and insurance policies you have shared with us.

Travel Insurance