The Best-Kept Secrets To Post-Pandemic Travel Insurance

TLTR:  This article explains the various types of travel insurance coverage and helps you calculate the cost. Learn how to find the best travel insurance cost for your specific coverage needs.  

If you’re planning to travel out of your hometown into distant places then congratulations,
you’re an active part of the 8 trillion-dollar global tourism industry, giving employment to 9% of the world population (Research Nester).

But even the most relaxing vacation abroad comes with risks and unforeseen adverse circumstances attached. The best way to protect yourself is by obtaining a foolproof travel insurance policy.

A Traditional Travel Insurance Policy

Travel insurance covers the cost of a number of issues that may arise in your travels. This can be for any number of reasons and unforeseeable circumstances. Reasons include illnesses, weather, political or national turmoil, and anything mentioned in your travel insurance policy.

Regardless of where you are going, there are common features in all travel insurance policies. At the least, ensure that these basic features are part of your policy. If not, ask your agent the possibility of extending your coverage plan.

Even if you are looking for cheap travel insurance, try to ensure your policy covers at least four of the listed points. The following list applies to long travel journeys, including trips to multiple locations:

• Trip cancellation
• Trip delay
• Missed flight connection
• Baggage claim disruption
• Emergency medical service
• Accidental death and dismemberment

This is for a conventional flight journey; the policy differs for cruises. Again, build an open communication with your agent, so they can know your plans better. Your insurance agent will effectively help you choose the best travel insurance policy.

Types of Travel Insurance Policies

Whether you travel for a short trip you don’t plan to take again, or a long-term travel plan that covers several countries and includes frequent stops, the trick is to know what to ask for. Your travel insurance policy depends on your specific plans and the circumstances under which you’ll be travelling. Have a look at the typical types of travel insurance policies:

• One-way travel insurance: You are only travelling one way without a return ticket.
• Annual insurance for multiple trips: Insurance that covers several confirmed trips a year.

How Much Does Travel Insurance Cost?

Different agencies specialize in different kinds of travel insurance coverage. A person planning to go on a mountaineering trip in the Himalayas, for example, will need different coverage from a traveler who is island-hopping in Bali.

You can look for coverage on a day-to-day basis, which can range from $10-$20 per day, or a long-term plan of weekly, monthly, or annual payments. Going by this rule, a single trip will cost anywhere from $50 to hundreds. A high level, regular coverage, the annual policy will cost $500.

It’s not difficult to find cheap travel insurance if you look around enough. And keep in mind that high prices should never be an excuse to avoid travel insurance. If price is indeed a major area of concern, you can always shop around for better quotes.

For example, sometimes your credit card might offer free travel insurance as a perk. The cost of paying for any mishaps on your trip uninsured, out of your own pocket, in a territory you are not familiar with, is never going to be worth it.

Factors Influencing Travel Insurance Cost

A lot of things can have a bearing on how much you’ll end up spending on your policy. Some of the most notable are:

• Age: The older you are, the higher the prices for travel insurance.
• Total trip expenditure: Expensive trips cost more to insure than less expensive trips.
• Amount of coverage you decide on: You will be given the option to have add-on coverage, which means additional policies.
• Number of people your policy covers: A family policy will cost more than an individual one.
• Your destination: High-risk zones, areas experiencing significant political and social turmoil, will be costly to insure.
• Travel duration: Your travel insurance cost will rise the longer you are away on the trip.

The Travel Insurance Cost Calculator

A travel insurance plan will make up about 4%-5% of the total cost of your trip. For instance, if you are going on a cruise that costs $4,000, a travel insurance cruise plan will cost you about $160-$200 dollars.

Seven Corners offers a travel insurance calculator that effectively determines your total travel insurance cost by factoring in your destination, age, and traveling dates.

Travel Insurance Exclusions

There are certain policies that typical travel insurance does not tend to include:

Most types of cancellations due to a wide range of occurrences (weather, pandemic, terrorist act)
Injury from extreme sports or adventure sports

And there have been additional exclusions in reaction to the pandemic:

• Fear of travel
• Second covid surge
• Ignoring government travel warnings

Note: You can consider getting comprehensive risk insurance or personal liability insurance for coverage in the above-mentioned instances.  

The Right Time to Get Your Travel Insurance

As soon as you have booked and planned your trip, it’s time to either get a new travel insurance policy or to look into modifying or renewing your multiple travel policy. A sound travel insurance policy covers your cancellation as well, but you have to ask to include it.

The Element of Risk

Make sure your coverage amounts to full-fledged travel accident insurance. When trying to figure out your travel insurance cost, remember that the price relies on the overall cost of your trip. The abovementioned factors that influence cost are calculated to determine risk.

Don’t make the mistake of going for a plan that’s lower-priced but does not suit your needs completely. And certainly, don’t end up with high-priced coverage that over-insures your trip. The type of coverage you choose changes your rate drastically.

Best Travel Insurance Agencies of 2023

According to Forbes Advisor, the list of the best travel insurance agencies of 2023 has been updated by taking the Covid-19 pandemic into account. Covid coverage is available for all of the following travel agencies.

• HTH Worldwide
• John Hancock Insurance Agency
• Seven Corners
• AIG Travels
• Trawick International

Add-on Coverage for Your Travel Insurance

A basic coverage will naturally cost less, but what if you are sure of the risks, you will be exposed to, and want complete protection?

For example, if you are taking a pet abroad, opt for a comprehensive insurance addition. In this way, your travel insurance policy has a specialized policy for pets addressed. Also, did you know a renters insurance policy will cover lost or stolen goods even when you are traveling?

Another thing to consider is the purpose of your trip. Are you hoping to take pictures, or planning to document your trip with expensive photography equipment you just purchased? Insurance companies offer photography insurance for avid photographers.

Furthermore, get additional insurance if you are going abroad but still plan to continue working. Maybe this travel experience is your foray into the life of a digital nomad. According to International Business Times, the number of American digital nomads working remotely in exotic destinations rose by 50% in 2019. The trend has been encountering a steadfast rise. A laptop insurance policy is probably the handiest tool for knowledge professionals on the move. What’s more, you will be more willing to travel around with your work, despite the severity of the climate or landscape.

Group Travel Insurance

When your trip includes a party of 10 or more people, always remember that group travel insurance is available if you ask. It will save everyone a significant chunk of insurance expense. Each individual will be covered with a single policy, and one claim will not hinder the policy protection of another individual.

Policy plans of group travelers also take into account the nature of the trip. This may includes corporate travel, volunteer work, religious, or family trips and destination weddings.

A typical eligibility plan for group travelling is:

• You are travelling with a group of 10 or more people.
• All travelers have the same destination and travel date
• Residents of the same country of origin

Travel Insurance Cost Post Covid-19

If there is anything the Covid-19 Pandemic taught us about traveling, it’s the necessity of regularly updating ourselves on our travel insurance policy changes. The BBC conducted a survey post the Covid-19 pandemic which indicated that out of the 263 travel policies analyzed, only two provided full coverage for all traveling risks. Regardless of where you are traveling, and whether the destination has recently been green-lighted as a safe travel zone, check your policy.

If you look at a traveler’s map today, all countries are separated into either green, amber, or red zones. This color code system currently plays a significant role in determining your travel costs. While the green zones are regarded as safe from Covid-19 risks, they may still require multiple PCR tests for Covid-19, which may cost you up to $300.

Note: End Coronavirus is a useful tool to determine how different countries are color-coded, and you can use this information to bargain for travel insurance policies.

To Sum Up...

Nothing should get in the way of your highly anticipated travel plans, and you deserve a seamless insurance claim experience if something goes wrong abroad.

And a proper travel insurance policy will give you the reassurance you need to embolden you, for new adventures.

When a travel emergency does strike, if ever, the insurance will cover your medical expenses, evacuate you from high-risk zones, and pay out high bills that you would have unnecessarily paid out of your own pocket.

You can find an agent today for a free quote on your travel insurance.