To understand what determines the Premium
in travel insurance, you need to understand ‘what is travel insurance’. Travel Insurance
is meant to protect you and others who travel with you from the risks associated with your travel. It could be the uncertainty of a delayed trip, it could be your falling sick as you venture out on a holiday, or it could even be a missing baggage or cancelled flight. Find out what determines the premium in travel insurance and how you could get the most out of your investment.
Never hide: It is important that you be open with the kind of preconditions that you may come with – which should be perfectly acceptable to most providers of travel insurance. The mistake that most people make is when they try to hide information from their TPA (third party administrator) in the hope that their insurance premium may come down a bit in the bargain. However, more than determining the premium in travel insurance, you may end up ruining your chances of landing the best travel insurance, with companies even refusing to provide you with coverage.
Buy in Bulk: Determine your travel needs for the year ahead before you decide about travel insurance. It’s quite possible that you may have a few trips lined up for the year, making use of your investment in insurance premium to the hilt. One option would be to go for annual, multi-trip travel Policy
that would work out well in providing Coverage
all through the year and reduce your expenses considerably in the process.
Buy what you need: One thing about travel insurance is that you would need only as much of it as you plan to travel. Thus, if you know that you would be travelling to Europe or to East Asia, you would certainly not need a global cover that would protect you in places that you would never be going to.
Get the right coverage for you: Whether it is online travel insurance or the regular ones, you can be sure that the kind of coverage that you get from your TPA depends on what you need. There is no such thing as standardized ‘one-size-fits-all’ service that suits everyone. One good thing about travel insurance
is that the industry has evolved to cater to individual needs and requirements, and you would get to choose just what you want in terms of what is covered in your insurance policy. Hence, if you are not going for adventure sports or scuba diving, make sure that you do not get a policy that has them covered. The kind of options that you choose and the kind of activities that you would want covered determines the premium in travel insurance.
Exclude what is covered: You do not need anything and everything that the TPA offers you. You may check if you are already covered for with your credit card company. There is a good possibility that your credit card might be providing coverage for your luggage and personal belongings anyway; check what you are already covered for and eliminate them from your travel insurance to have a degree of control over travel insurance premium.
Check your deductibles: Deductibles are the amounts that you may have to shell out of your own pocket when you are stuck with a bill. Your travel insurance premium depends on the amount of deductibles that you have taken – the higher the deductibles that you have opted for, the lower would be the insurance premium that you would have to pay on online travel insurance.