Weighing The Pros And Cons Of Cheap Travel Insurance in 2020

Going on that dream vacation? Great! But what happens if you suddenly got into an accident while you’re on vacation or you might need to cancel your trip abroad for health or personal reasons? Have you considered getting cheap travel insurance? 

People get travel insurance for different reasons. Frequent travelers usually get full-coverage, annual travel insurance. People who travel seldomly only choose insurance with certain benefits that allows them to cancel at the last minute and can cover medical reimbursements. Whatever the reason might be, travel insurance is important whenever you’re flying in any part of the world.

Ideally, getting good travel insurance is important especially if you’re travelling in remote countries or islands for longer periods of time or if you’re planning to go on adventurous experiences while travelling around the world.

The key to finding good travel insurance is evaluating your travel agenda for the year and finding out about its benefits. A common misconception about travel insurance is that it automatically covers ALL benefits (medical reimbursement, luggage security, trip cancellation, CFAR, accident, etc.) which in fact, is not true. 

But first, let’s clear everything you need to know about cheap travel insurance. The question: does cheap travel insurance really exist? 

No, cheap travel insurance does not necessarily exist. But what lies therein is the reality of not knowing or not going through the policy on the entire coverage of the travel insurance you’re getting. These kinds of travel insurance are often misinterpreted as comprehensive due to a lack of understanding of the scope and limits of your travel policy. 

To begin with, there are different types of travel insurance. Take note that these may be included in a package or can be purchased or added separately. 

  • Trip Cancellation, Interruption, and Delay (also known as the Comprehensive Package)
  • Lost Baggage and Personal Belongings Coverage
  • Emergency Medical Assistance, Evacuation, and Repatriation
  • Major Medical Insurance
  • 24-Hour Assistance
  • Rental Car and Collision Coverage
  • Accidental Death and Dismemberment Insurance

Usually, you’ll be able to get travel insurance from your credit card holding company, from a travel insurance company, from a separate travel tour agency, and from airline companies. The most common package you can avail when getting travel insurance is trip cancellation, interruption, delay, and medical or health coverage, but they’re all limited to specific amounts when you’ll get your expenses reimbursed. 

Although these might usually come in as more affordable during short and non-risky trips, it’s not considered cheap travel insurance, especially if you might encounter greater misfortune that what your insurance policy can cover. For example, if you ever had a serious injury from an accident on the road or been hit with a critical medical condition while you’re abroad and your insurance policy cannot cover more than your medical expense abroad, that’s going to cost you more considering the cost of living in the country you’re in. 

The reality about travel insurance, if you think about it, is that if it comes cheap, the consequences when you use it abroad will cost you more than your policy.  

Should You Avail A Full-Coverage Travel Insurance Instead?

It still depends on the purpose of your travel. You might want to consider a full-coverage travel insurance paid annually if:

  • You’re travelling for long periods of time and in remote countries/areas
  • You’re going to do adventurous activities (hiking, trekking, backpacking, skydiving, etc.)
  • You’re a frequent traveller
  • It’s a very important travel that you cannot postpone
  • Your overall travel cost (flight, accommodation, etc.) is very expensive
  • If you’re going to bring your children, pets, or fragile types of equipment

If any of the following reasons match your purpose of buying one, here are two things you need to do before jumping into purchasing full coverage travel insurance:

Plan the purpose of your travel carefully.

This is the most crucial part of travel planning. The purpose of your travel determines what kind of travel insurance you should get. Are you going to be out of the town for a few days and have a totally relaxing travel experience? Are you going to go all out on adrenaline rush and do some serious kayaking, skiing, or hiking? Are you going to spend all your vacation time on the road? 

Planning out your travel itinerary will help you narrow down what you need to add to your travel insurance. The longer and more frequent that you’ll be away, the more comprehensive your travel insurance should be, even if it will cost you a hefty price. As long as you know you’re completely insured, you’ll have fewer worries to think about while on vacation. 

Research, research, research. 

Months before your travel, make sure to do detailed research and analysis on different travel insurances that can give you the most level of convenience.  Don’t just settle for one company, there are many companies that can offer more competitive inclusions in your insurance at a reasonable price. It also helps to ask for quality feedback from other travellers on their preferred travel insurance company. You can also check out this comprehensive guide to finding the best travel insurance companies, for starters. 

At the end of the day, all we want is a great travel experience. Getting good travel insurance will make your travels better and safer, don’t skimp on finding the best one out there.

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Clifford Crawford

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