How Much Does Travel insurance Cost?

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A comprehensive travel insurance package will provide coverage for trip cancellation or interruption, medical expenses, loss of baggage and belongings and emergency evacuation. Some people who suffer from pre-existing medical conditions will have to purchase specific insurance plans and they will pay more, because the chances of filing a claim increases. Travelers who choose only a health plan will eliminate other benefits such as cancellation coverage, but the travel insurance cost will be as low a a few dollars per day.

How Much Does Travel insurance Cost? How Much Does Travel insurance Cost? Picture

If you want to purchase trip cancellation insurance, you will have to pay approximately 7-10 percent of the total trip cost. However, the price varies according to the number of travelers, their age and the travel itinerary. Those who only need medical and emergency evacuation coverage can find a reasonable policy starting at $95 for a duration of 3 months. However, the travel insurance cost will be influenced by age and health condition. Some medical plans have additional options that can be added to the package, such as coverage for high-risk activities.

If you want a more comprehensive insurance policy, each optional coverage will affect the price. Some of these options are: golf course closure coverage, cancel for any reason, identity theft protection, rental car coverage, athlete/student coverage, sports coverage and non-medical evacuation coverage. Many policies apply deductibles to benefits such as baggage coverage. The deductible is an out-of-pocket amount you are responsible for. If you choose a higher deductible amount, for example $100 versus $50, the insurance will cost less.

Moreover, coverage limits such as the maximum amount reimbursed in case of medical evacuation will influence the travel insurance cost. If you select $50,000 for life insurance instead of $25,000, your premium will also be higher. The premiums are based on the total trip of the cost and are usually about $5 to $8 for each $100 of coverage, or 5 to 8 percent of the cost. Trip cancellation insurance and medical evacuation can cost more, although many policies don’t limit the evacuation coverage to the value of the trip.

Usually the travel insurance cost varies only slightly from one provider to the next, but there are major differences in policy terms and exclusions, so make sure you read the small print before you purchase a plan. Travelers can buy a policy from a tour operator, a travel agent or an insurance company. Because of the upscale tours and cruises costs, many operators encourage clients to acquire trip cancellation and interruption coverage and even sell them as an add-on to the plan. This is very risky, because the tour operator can go out of business. Your travel insurance can cover such situations, but not if they are caused by the insurance supplier.