How to Compare Travel Insurance Plans Effectively
To effectively compare potential travel insurance plans that may be suitable for you, compare the financial stability of the insurance provider, different coverage levels, the cost, and the actual coverage benefits of each plan.
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Are you planning a trip and are wondering how to find the best travel insurance for your needs and budget?
In this guide, we will cover 10 things to consider when comparing travel insurance, the difference between short- and long-term travel insurance, how to determine which type of travel insurance will benefit you the most, and what are some of the best travel insurance plans available.
10 Things to Consider When Comparing Travel Insurance
When comparing travel insurance plans, it is important to consider the financial stability of the insurer, the differences between coverage levels (both offered by the same provider and by different providers), how much each plan costs, the types of coverage included in each plan, and more.
The following sections cover the top 10 key elements worth comparing between travel plans to find the right policy for you.
1. Compare the Financial Stability of the Travel Insurance Carrier
A.M. Best ratings are one tool you can use to compare the financial stability of the travel insurance carriers you are considering. You can also ask a broker’s professional opinion on which carriers have strong balance sheets, performance ratings, and financial reliability.
Brokers are intermediaries between insurance carriers and insured individuals, so a broker’s opinion will be objective and honest.
You’ll want to make sure you purchase a plan from a travel insurance company that would be able to deliver you monetary protection if you were to need coverage for your travels.
2. Compare The Difference Between Coverage Levels
Be sure to compare the coverage levels between travel insurance plans by the same insurer. Many providers offer basic, intermediate, or comprehensive plans. The benefits and prices will vary significantly between each coverage level within the same company.
You’ll want to figure out how much coverage you want and can afford and pick a coverage level accordingly.
Make sure when you compare plans across insurers that you’re comparing similar policies. If you know you want a basic coverage plan for just the essential travel benefits, then make sure you compare the basic coverage plans between carriers and not basic plans against the most comprehensive ones.
3. Compare What Affects Travel Insurance Costs
The average cost of travel insurance is about 5–6% of your trip cost. This varies depending on the coverage level of your chosen plan and how comprehensive your benefits are. When comparing travel insurance plans, don’t only compare the costs side by side, but compare what changes those costs.
For example, the length of your trip will affect your travel insurance premium. Longer trips often cost more than shorter trips. You can adjust your trip length so your travel insurance premium fits in the range you’re looking for.
Other factors that affect the cost of your travel insurance are:
- Cancellation Benefits: As the reasons for canceling your plan become more flexible, your plan will become more expensive. Some examples include basic cancellation benefits, cancel for work reasons, and cancel for any reason.
- Length of Your Trip: The longer your trip, the more expensive coverage will be.
- Medical Benefits: Often the more medical benefits that come with a plan, the more expensive the plan will cost.
- The Age of the Insured: The older the insured person is, the more the plan will likely cost.
- Number of Travelers: The more people who need to be insured, the more the insurance premium goes up.
- Cost of the Trip: The cost of the trip has one of the greatest impacts on travel insurance: the more expensive the trip, the more expensive the coverage.
- Destination: Where you are going for your trip also affects your travel insurance cost. This will be unique to your chosen destination.
4. Compare Types of Travel Insurance Coverage Benefits
Comparing the types of coverage offered in each plan is essential when comparing travel insurance policies. Not every plan has every benefit or for the same quantity; this is why you should closely compare each benefit before purchasing. Benefits you should compare include:
- Travel medical insurance
- Trip cancellation
- Baggage and personal belongings
- Emergency medical, evacuation, and repatriation
- Accidental death and dismemberment
- Rental car coverage
- 24-hour assistance
- Worldwide travel insurance
As you compare the types of coverage benefits offered by several travel insurance plans, you’ll want to think about which interruptions are likely to happen in your situation.
For example, if you have a loved one who is terminally ill, and you may need to cancel your upcoming trip in the event of their sickness or death, it’ll be important for you to have trip cancellation coverage.
Keep your life situation in mind as you determine which benefits you need. That mindset will inform how you compare plans against one another and ultimately pick the one that best suits your trip. Make sure it has the benefits you want.
Travel Medical Insurance for Recreational Activities
Some travel insurance plans provide medical coverage for recreational activities like skiing and horseback riding. Some plans offer optional coverage for adventure sports like skydiving, parasailing, and competitive sports.
Trip Cancellation, Interruption, and Delay
Travel insurance plans often offer trip cancellation, interruption, and delay benefits that can reimburse your lost money for unexpected traveling interruptions. These can include benefits covering for sickness; injury; or death of the insured, their family member, or a traveling companion.
Baggage and Personal Belongings
Travel insurance often offers coverage for lost, stolen, or damaged luggage. The monetary benefit limit for baggage and personal belongings varies for every plan; often the insurer will reimburse you for lost belongings up to a certain value.
Emergency Medical, Evacuation, and Repatriation
Emergency medical care includes emergency transportation, treatments, medications administered, and other similar services. Emergency evacuation is when you need to be evacuated to the nearest hospital or clinic with sufficient medical equipment and services for your urgent condition.
Emergency repatriation is coverage for being transported back to your country of origin for an urgent reason.
Accidental Death and Dismemberment Insurance
Accidental death and dismemberment travel insurance coverage pays a lump sum to a beneficiary in the event the insured individual dies while traveling.
Rental Car Coverage
Rental car coverage on travel insurance plans is to assist in rental car damage, vandals, or natural disasters while you are responsible for the vehicle.
24-Hour Assistance
Some travel insurance packages include 24-hour assistance. This is a 24-hour hotline you can call when you need help due to flight delays or complications, lost or stolen luggage, or if you need a doctor or lawyer.
Worldwide Travel Assistance
Some travel insurance plans offer worldwide travel assistance which can include legal referrals, translation services, and services for ID theft.
5. Compare Short vs. Long-Term Travel Insurance Policies
Some travel insurance policies are designed for shorter trips, some for longer trips. After you’ve determined the length of your traveling, make sure that you compare plans that are designed either for a short or long trip since their benefit packages and prices will differ.
6. Compare Benefits for Traveling With Children
If you’ll be traveling with children, it can save you money to intentionally pick a plan that lumps in coverage for your children at no additional cost. Allianz Travel is one such company that covers children under the age of 17 for free if they travel with a parent or grandparent who is insured.
7. Compare Coverage for Overseas vs. in the United States
Do you need travel insurance overseas, or will you only be traveling in the United States? Your trip destination can affect the benefits offered to you and the price of the plan, so you’ll want to make sure you compare plans that meet the criteria of your itinerary and avoid plans that don’t.
8. Compare Coverage for Multiple Trips in the Same Year
Travelers who plan to have three or more trips within 12 months can save money if they get an annual/multi-trip travel insurance plan. It is worth comparing the benefits and costs of an annual plan against purchasing multiple single-trip plans to see what will get you the best deal.
9. Weigh What’s Important to You: Saving Money or Peace of Mind?
When comparing travel insurance plans, you must consider what will ease your mind. Some travelers have a tight budget and need to stick to it; some travelers are prone to anxiously worrying over all possible trip complications and are best served with peace of mind from robust protection.
Know yourself and what is important to you and keep that in mind as you compare plans. Don’t compromise what is most important to you, or you’ll regret your decision.
10. Weigh Whether You are a Planner or a Spontaneous Traveler
To compare travel insurance plans effectively, you need to decide if you’re a planner or a spontaneous traveler, because each has different needs.
- Planners may prefer a policy with trip cancellation and interruption benefits because they’ve likely extended many prepaid expenses in advance. With trip delay/ cancellation/ interruption benefits, you can get your previously invested money back.
- Spontaneous travelers may have fewer prepaid expenses and are more likely to make changes to their plans. You may want to look for more flexible plans that allow for extended coverage. You may also want to look into activity coverage if you’re likely to engage in extreme recreational sports.
Travel Insurance Comparison Tools
A great tool travelers can use to compare travel insurance is Pacific Prime’s travel insurance quote generator page. This page introduces the best travel insurance providers, and it includes links to get a free quote online for each provider.
By clicking on buy online now, you can get a free quote without needing to check out and pay.
Another comparison tool is the wealth of knowledge and experience of our travel insurance experts. Ask them your questions, and they can help you compare travel insurance policies from several providers until you find the right fit for your trip.
Purchasing insurance through a broker is in your interest and comes with many benefits that you can’t get by going directly to the provider.
The Best Travel Insurance Providers
The 5 best travel insurance providers are April International, VUMI, IMG, GeoBlue, and MSH International. You can read the linked blog article that introduces each of them and their insurance plans. Below are links directly to articles about each provider:
Frequently Asked Questions
Who is the best travel insurance provider?
April International is one of the best travel insurance providers. They offer both short-term international health plans and travel insurance plans. They have inpatient, outpatient, evacuation, and repatriation coverage available for 1–12 months with an option to extend one time for 1–6 months.
What are the two types of travel insurance plans?
Most travel insurance plans are geared toward one of two types of benefits: trip protection and traveling health insurance. A protection plan package focuses on benefits like trip cancellation, interruption, and delay, and baggage protection. Travel medical plans focus on emergency medical services.
What is the best travel insurance plan out there?
The best travel insurance plan is the plan most closely catered to your individual trip needs. To find this plan, you need to effectively compare travel insurance plans from multiple providers and between plans offered by the same provider.
Conclusion
This article has introduced over 10 different characteristics of an insurance plan that you should review when comparing travel insurance. Now you should know all about how to compare plans effectively!
If you’re looking to secure travel insurance for your next trip, Pacific Prime can help you. With over 25 years of experience, our insurance experts can help you filter through different insurance plans from our extensive list of insurance partners to help you find a plan that suits your needs.
Get in touch with our expert advisors today! Alternatively, you can get an online travel insurance quote go here.
Serena earned her Bachelor’s Degree in Psychology from the University of British Columbia, Canada. As such, she is an avid advocate of mental health and is fascinated by all things psychology (especially if it’s cognitive psychology!).
Her previous work experience includes teaching toddlers to read, writing for a travel/wellness online magazine, and then a business news blog. These combined experiences give her the skills and insights she needs to explain complex ideas in a succinct way. Being the daughter of an immigrant and a traveler herself, she is passionate about educating expats and digital nomads on travel and international health insurance.
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