YOU ASK:

How much can I expect to pay for travel insurance?

WE ANSWER:

Travel insurance is well worth the expense. This is what you'll realize when you meet an unfavorable circumstance during your travels. However, you should also balance the premiums that you pay for the travel insurance with the benefits that it will provide.

A travel insurance plan usually costs around 5% to 7% of the total cost of your trip. A travel insurance plan that costs over 10% of your total trip cost may be too expensive, especially if the coverage provided are benefits that are standard. So that means, if the total cost of your trip (including plane fare, hotel accommodation and food) is $1,000, you should expect to pay from $50 to $75.

Of course, how much you can expect to pay for the travel insurance depends on the package of benefits you want. The premiums may either be lower (if you choose to do without some of the coverages - such as trip cancellation coverage) or higher (if you want additional cover for pre-existing medical conditions). If you also want extra travel medical insurance (as well as other non-emergency services), this can increase the premiums you have to pay for your policy.

How Much for a Specialized Travel Insurance?

If you are also looking to have specialized travel insurance, this may cost you more. Specialized insurance provides additional coverage for eventualities that are not usually covered by standard policies. For instance, if you plan to go skiing and snowboarding (sporting events that are excluded in a standard travel insurance policy), you may have to pay more. The same goes for those who are over 65 years old and still want travel insurance.

How to Save on Travel Insurance?

One way to save up on the cost of travel insurance is to look at the existing coverage you have by way of your health insurance, as well as the travel insurance that may come with your ticket. Some credit cards such as American Express offer free travel insurance when you use the card to buy your ticket. If you are also doing a lot of traveling, it may be more cost-effective to buy annual travel insurance instead of single-trip insurance.

Along with the premiums you will be paying, you should also take into account excess, deductibles or co-payments you will have to pay when you make a claim. These are amounts that the travel insurance company will require you to pay - the portion of the claim that you will have to share in the payment.

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