YOU ASK:

What factors do I have to consider when looking at the premium cost for single trip holiday insurance?

WE ANSWER:

A Single Trip Holiday Insurance is a travel insurance product that you can buy to protect you from expenses due to unforeseen (but possible) events. Single trip holiday insurance works best for the budget conscious and for those who seldom travel within a year.

With single trip holiday insurance, you only pay for the number of days you are covered. Then, when you are not traveling, you can have your local insurance cover for you.

Here are some things that are being considered when you buy single trip holiday insurance.

  1. Age: Single trip insurance usually has a maximum age limit, which is usually set at 65 years old. Sometimes, though, it can be as low as 45 years of age. If you don't fall within the age limit specified, you can buy travel insurance designed for senior travelers, which may be a bit expensive compared to the standard single trip holiday insurance. There are also some age-based products which provide lower premiums for those who are younger.
  2. Benefits and maximum limits: the level of cover provided will also affect the premium cost. Of course, when you want more benefits and higher maximum benefits, you should also be prepared to pay for a higher premium. If you're also willing to do away with some benefits. For example, if you don't think you'll need lost luggage insurance (since you're only carrying a backpack), then you can opt to exclude this from your travel insurance coverage. You can also add other coverage that is not provided in the standard travel insurance coverage. This may include wedding cover, skiing cover or golf cover.
  3. Excess levels: the deductible (or the amount that is considered your share of the claim) is applied usually on medical-related benefits. When you want to have a lower deductible or to waive it altogether, your premiums will increase. If however, you agree to a higher deductible or excess level, then this will lower your premiums costs.
  4. Activities: Single trip holiday insurance will only cover activities that are deemed "safe". If you want to indulge in more risky adventures, you should also consider buying cover for this.

However, if you are lucky enough to be able to have a holiday for at least thrice in a year, it will be more cost-effective to buy an annual multi-trip travel insurance.

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