Comprehensive travel plans cost more than basic travel insurance since they come with broader protection.
But if you don’t know how travel plans work, you may end up overpaying for coverage you don’t need or opting for inadequate plans to save money.
Here’s how to protect yourself and get the most bang for your buck before your next trip.
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What Factors Determine Travel Insurance Premiums?
Insurers consider a few factors when determining how high a premium to charge.
Some of these factors are in your control, but others aren’t. Understanding how premiums work can make it easier to find the right policy for your trip and budget.
Coverage scope and type
When you seek out truly comprehensive travel plans that include protections like medical evacuation, trip interruption, and baggage protection, you can expect to run into higher premiums.
The type and scope of coverage you choose depend entirely on your preferences, but your risk tolerance plays the largest role in what coverage you will buy.
It’s also worth noting that the term “comprehensive” is a bit overused in the travel insurance world. Travelers often have to buy add-ons to round out their policy, which comes at a cost.
For example, if you choose to purchase a CFAR (cancel for any reason) add-on, your premium price will increase — but so will your peace of mind.
Like many things in life, with travel insurance, you get what you pay for. Policies with fewer exclusions and higher payout limits have higher premiums.
Trip cost and duration
A month-long international trip costs more to insure than a weekend getaway. Greater trip costs and longer durations lead to higher premiums since you need more protection.
Most comprehensive travel plans charge you about 7% of the total cost of the trip. So keep that in mind when you’re calculating insurance for a trip worth thousands of dollars.
Traveler demographics and risks
Planning an exotic hiking trip through the Amazon will come with a lot more risks (and expensive ones at that!) than sightseeing for a few days in London.
Some other insurance risk factors aren’t in your control — for example, age and pre-existing conditions also impact premiums.
This is why older travelers or adventure travelers typically pay more.
Balancing Comprehensive Coverage With Affordability
Paying for travel insurance can sting after booking an already expensive trip, but it is the best way to protect that investment.
As you’re shopping around, you’ll need to balance enough coverage to safeguard yourself without going overboard on protections.
Prioritize essential benefits
If you can’t afford fully comprehensive coverage (aka buying add-ons), focus on must-haves like trip cancellation and medical coverage.
Think critically about which risks you face on your upcoming trip and what you’ll need if a disaster strikes.
Consider your travel risks
Don’t overbuy travel protection coverage you likely won’t utilize. Choose coverage based on your destination, activities, and personal circumstances.
For example, skip extreme sports coverage if your trip doesn’t involve risky activities. The same goes for add-ons about pre-existing conditions or evacuations if you truly don’t believe you are at risk.
Compare providers and plans
Don’t settle for the first travel insurance plan you come across. Slow down and research a few different providers to compare cost and coverage.
You can use a platform like VisitorsCoverage to find affordable options with sufficient protection.
It’s good practice to compare at least three different insurance providers. Make sure the coverage type and amounts line up to get an accurate idea of which provider offers the best deal.
READ MORE: What To Look for in a Comprehensive Travel Protection Plan
FAQs About Comprehensive Coverage and Premiums
Does adding family members to a policy significantly increase premiums?
Adding family members tends to increase the premium, but to what extent can vary.
Insurers take on additional risk with each person added, but the increase more specifically depends on factors like the number of family members and their ages. For example, older individuals often pay higher premiums due to increased health risks.
The type of coverage matters too. Broader benefits — such as medical coverage or trip cancellation — can lead to larger increases.
Many insurers offer bundled or family plans that can help reduce costs compared to purchasing separate policies for each individual.
How much more does CFAR add to a standard premium?
A typical travel insurance policy usually costs around 4% to 10% of your nonrefundable, prepaid trip expenses.
Adding cancel for any reason (CFAR) coverage increases that amount by approximately 40% to 50%.
It’s worth shopping around with a few different travel insurance providers to see who can offer the most coverage for the best price — including add-ons like CFAR.
Do travel credit card protections lower the need for comprehensive coverage?
Credit cards often include coverage for trip cancellation/interruption, delays, rental cars, and lost/delayed luggage, but usually lack emergency medical coverage, medical evacuation, or protection for pre-existing conditions.
One exception is the Chase Sapphire Reserve®, which includes emergency medical and dental, medical evacuation, and accidental death or dismemberment coverage on top of trip cancellation/interruption, trip delay, lost/delayed baggage, and car rental coverage.
Otherwise, on trips with high medical risks or significant nonrefundable costs, a comprehensive policy is often still necessary to fill these gaps.
TL;DR: Premium Costs on Comprehensive Travel Coverage
Traveling can be stressful, but there are ways you can lighten that burden. Having a reliable comprehensive travel plan by your side can make it easier to set off on your next adventure without a worry in the world.
Comprehensive travel coverage offers valuable protection but comes at a higher cost. To find the right fit, assess your trip’s risks, focus on essential benefits, and compare providers to find a plan that fits your budget and needs.
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Disclosure: Opinions expressed here are the author's alone, not those of any bank, credit card issuer, hotel, airline, or other entity. This content has not been reviewed, approved or otherwise endorsed by any of the entities included within the post.
