Big Money-Saving Benefits of Travel Insurance

Before your trip, don't forget to buy travel insurance. This often-overlooked coverage is a bargain for the big benefits. Money Girl interviews Stan Sandberg, co-founder of TravelInsurance.com, about the many protections you can choose, how it fills gaps in your medical coverage, the typical cost, and how to save money when shopping for a travel plan.

Laura Adams, MBA
3-minute read
Episode #586
Don’t Miss Big Money-Saving Benefits of Travel Insurance

Travel insurance is often overlooked. Most of us consider it an unnecessary expense. But when you understand the big benefits you get for a relatively low cost, you might never skip buying a policy again.

A travel policy covers you for a variety of situations that range from an inconvenience, such as losing your luggage, to bumping-up against a hurricane, or having a life-threatening medical emergency that requires an airlift to the nearest hospital.

Don’t forget that most health insurance plans, including Medicare, offer little to no coverage when you’re outside of the U.S. So, check your plan, or speak to an insurance representative to make sure you understand what costs you’d be responsible for outside of the country.

See also: How to Ease Travel Anxiety

To go deeper into the world of travel insurance, I interviewed Stan Sandberg, co-founder of TravelInsurance.com. He helps explain what travel insurance is and why it’s a smart purchase. Stan shares many surprising, money-saving tips that every savvy traveler should know.

Here are some of the topics we cover:

  • The variety of protections you can choose with travel insurance
  • How a plan fills the gaps in your medical coverage while traveling
  • What a typical travel policy costs
  • Who is a good candidate for travel insurance
  • How to insure your next adventure trip
  • Whether you should get an annual or single travel plan
  • How to save money when shopping for a travel insurance policy

[Listen to the interview using the embedded audio player or on Apple PodcastsStitcher, and Spotify]

Use these tips from TravelInsurance.com to enjoy your travels:

Tip #1: Buy Flights and Travel Insurance Early

Research shows that it's best to book airfares between 21 and 175 days in advance. Travelers are always looking for the best deal, but most discount airfares usually require a 21-day advance purchase.

Even if you're feeling lucky, it's unlikely you'll be able to score a last-minute deal. You'll end up having to pay a lot more, and that increases the cost of other things, like travel insurance.

In addition, if you wait more than 21 days from your initial trip purchase, you may lose out on certain travel insurance options, including Cancel For Any Reason, and Pre-Existing Condition Waivers.

Tip #2: Comparison Shop

Travel insurance comparison sites offer consumers a way to search, compare, and purchase from the most recognizable insurance providers in the industry. They also give you a better chance to find the right plan at the right price. For example, TravelInsurance.com allows you to save by taking advantage of price differences between carriers that have comparable benefits and coverage limits.

Tip #3: Consider an Annual Travel Insurance Plan

There are three key things to ask yourself when determining if an annual policy is right for you:

  • How many trips do you have planned for the year?
  • What amount of coverage will you need for these trips?
  • What type of activities do you have planned during the journey?

The cost of a single-trip insurance package, in most cases, is less than one-half the cost of an annual package. That makes single-trip insurance the logical choice for those limited in vacation time.

If you plan to take more than two major trips during the year then annual travel insurance is likely your best option. Both annual and single trip policies cover the same occurrences such as medical emergency, dental, trip cancellation, and lost or damaged baggage.

Tip #4.:Consider Group Travel Insurance

Group travel insurance can help save money for a group of 10 or more travelers on the same trip itinerary. The benefits and coverage in a group travel insurance plan are very similar to individual plans, with a few important differences.

First, the cost of group travel insurance is not dependent on the traveler’s age. So, an 80-year-old will pay the same price as a 20-year-old. This can be very cost-effective for groups of seniors. 

Second, group travel insurance is designed for easy enrollment and administration by a group leader. But each traveler receives his or her own insurance policy number and plan documents.

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Vintage Suitcase image courtesy of Shutterstock

About the Author

Laura Adams, MBA

Laura Adams received an MBA from the University of Florida. She's an award-winning personal finance author, speaker, and consumer advocate who is a trusted and frequent source for the national media. Her book, Debt-Free Blueprint: How to Get Out of Debt and Build a Financial Life You Love was an Amazon #1 New Release. Do you have a money question? Call the Money Girl listener line at 302-364-0308. Your question could be featured on the show. 

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