There are a lot of options when it comes to choosing a travel insurance plan. Luckily, online marketplaces like Squaremouth make it easy to find a policy that offers the right coverage at a great price.
You’ll want to start by narrowing down your choices and determining what kind of coverage you need. Then, you’ll need to read the fine print.
1. Look at the coverages
A travel insurance plan can cover a range of things that could ruin your vacation and drain your savings account. The best plans have extensive coverages that can protect you against flight cancellations, lost baggage and medical expenses while traveling abroad.
Many travel insurers have different plan options depending on your needs and budget. Some offer add-ons like Cancel for Any Reason or pre-existing condition waiver for a premium. Some companies also have specialized policies for cruises or specific groups of travelers.
The cost of a policy is typically determined by four primary factors: trip cost, traveler age, length of coverage and coverage amounts. Be sure to compare all of these factors before making a final decision. Moreover, make sure that the policy you choose covers the type of activities you plan on participating in during your trip. Usually, standard policies exclude adventure sports or competitive sports, so you may need to look for a separate plan if this is your intention.
2. Check the company’s reputation
A travel insurance company’s reputation and reputational standing can give you an idea of how they treat their customers. For example, the best travel insurance companies typically have a zero-complaint guarantee, and they provide easy ways to submit claims.
Many travel insurance companies offer a variety of plans with different coverage levels and price points. Some offer annual travel insurance plans, which can be more cost-effective for travelers who plan to travel multiple times per year. Allianz Travel, for instance, has four different annual plans with varying benefits and limits.
Other companies, like Travelex, offer individual policies that allow you to cherry-pick certain benefits. For example, its Travel Select plan lets you upgrade to a higher limit for adventure sports or emergency medical, while also providing basic trip cancellation and interruption coverage. You can also get a good sense of a provider’s reputation by looking at its customer reviews. For example, Squaremouth (a NerdWallet partner) collects consumer feedback from its insurance review community to help consumers make decisions about the insurer they choose to purchase travel insurance through.
3. Read the fine print
When selecting a travel insurance plan, it is important to read the fine print. Doing so will help you understand the policy and avoid any claims surprises. In addition, reading the fine print will help you identify important details such as coverage limits, deductibles and pre-existing condition exclusions.
Insurance policies are often written as PDF documents that can be difficult to read on a small screen. However, there is a simple technique that lawyers and government experts use to make these documents easier to read. It involves skimming the document, looking at headings and then focusing on areas where there are questions.
It is also crucial to understand if the policy offers primary or secondary coverage. Primary coverage means that the travel insurance company will pay for your claims before your homeowners or renters insurance, while secondary coverage will require you to file a claim with your own insurer before seeking reimbursement from your travel insurance provider.
4. Get a quote
When comparing plans, keep in mind that the cost is not the only factor. Look at the coverage limits and what’s covered, as well. It may be worth paying a bit more to get better protection.
Getting quotes online can be an efficient way to compare options. Some travel insurance companies offer a comparison tool that makes it easy to see how each plan stacks up against competitors. You can also enter your travel dates and the types of coverage you want to see a list of options.
Some policies include benefits like trip cancellation, which reimburses unused non-refundable pre-paid expenses in the event that you have to cancel or cut your trip short. Others, such as those offered by Travelex and Seven Corners, offer trip interruption coverage that pays up to 150% of your trip costs in the case of an unavoidable or unforeseen reason. Other policies, such as those offered by World Nomads and Generali Global Assistance, provide medical evacuation coverage that can be very important for travelers in remote areas.
