A travel insurance policy is a wise investment in a tourist`s peace of mind and safety. There are effective ways to save on it, as reported by Vitaly Kalinin, Development Director for Travel at the `Luchi` insurance company.
Significant savings can be achieved by purchasing the policy in advance: the closer the departure date, the higher the insurance cost may be. For those planning multiple trips throughout the year, an annual multi-policy is a cost-effective solution, potentially saving up to half the cost compared to buying individual policies.
The expert also advises carefully selecting options, including only truly essential services in the policy. For instance, if no sports activities are planned, the corresponding coverage can be excluded from the agreement.
Another way to reduce expenses is to opt for a policy with a deductible (franchise). This will make the insurance cheaper, but it`s important to remember that for minor expenses, part of the amount will have to be paid out-of-pocket.
However, Kalinin does not recommend completely foregoing insurance to save money. The average cost of insurance, which is only 4-8% of the total trip cost, is a reasonable investment in safety. A single insured event, especially in countries with expensive medical care, can cost tens of thousands of dollars.
How Insurance Costs Are Determined
According to the expert, the primary factor influencing the cost of travel insurance is the destination country. Countries with high medical service costs, such as the USA, Canada, Japan, or Switzerland, automatically increase the policy price. In these nations, even basic medical assistance can cost thousands of dollars, and serious treatment can amount to tens of thousands.
The policy price is also affected by the risk level in a specific country. Unstable political situations, frequent natural disasters, or a high risk of tropical diseases can increase the policy cost by 20-50% compared to insurance for travel to safer countries.
The second significant factor is the traveler`s age. Generally, the older the traveler, the higher the probability of an insured event related to health. Many elderly travelers also face the necessity of declaring chronic illnesses, which can further impact the policy cost.
Insurance prices also depend on the coverage amount – the maximum sum the insurance company will pay in case of an insured event – and the program`s scope. Basic programs typically cover only emergency medical assistance, while extended options can include numerous additional benefits. These might include, for example, trip cancellation insurance (increasing the policy cost by 30-40%), civil liability insurance (by 15-20%), or sports risks coverage (from +30% to +300% depending on the sport category).
