So, you’ve made the decision to purchase travel insurance for your next trip.
But what’s the next step? How do you decide which travel insurance plan to purchase?
One of the most common questions at TravelInsuranceReview is, “How do I compare travel insurance plans and pick the right one?”.
Finding the right policy is difficult for a few reasons:
- There are too many choices- With over 100 plans from over 20 different companies, travelers encounter “analysis paralysis” when trying to choose
- The prices of different plans can be drastically different- If one plan is $100 and another is $550, you naturally say to yourself, “What the catch with the $100 plan” or “Am I getting ripped off with the $550 plan”
- Travelers don’t always prioritize coverage- Having a good idea of what coverage is important to you (and what isn’t) is essential so you know what to look for in a policy.
Let’s take these one at a time
Too many choices make it difficult to compare travel insurance
When you do a Google search for “travel insurance”, it returns over 41 million results. Even when you find a travel insurance comparison site, you are looking at over 100 different plans from over 20 different companies. There are just too many to choose from, and you don’t want to make a mistake when insuring your next vacation or cruise.
It would almost be simpler if there were fewer to choose from; but it is also nice to have the variety of options the different policies provide (This is why we list the TravelInsuranceReview Top 10 on our Reviews page; to help you narrow down your options and choose from what thousands of other travelers already stand by).
The real key is to narrow down the list and eliminate policies that don’t offer the coverage you need. When you get down to a few, you can compare them side-by-side and see why one is better than the other.
Drastically different prices make you wonder if there is a “catch”
This is a natural reaction. When we see 3 similar plans with prices of $59, $180, and $240, it can be very deceiving. Is the lower priced policy a bad product? Is the higher priced one a rip-off? We’ve all heard the expression, “You get what you pay for”, but is that always true?
The answer is “it depends”. There is always a reason why products are priced a certain way. In the case of travel insurance, the difference is in the coverage and services. In the above example with prices varying from $59-$240, the $59 policy would have very different coverage than the $240 policy.
Keep in mind that insurance companies have vast amounts of data telling them the likely-hood of an event. They provide a certain amount of coverage based on this analysis, and price the policy accordingly. When you start comparing policies side-by-side, you’ll see how much the coverage can vary between policies, even though they seem similar.
Furthermore, it’s possible that the cheapest policy is the right one for you…if it has the right coverage. If you are comfortable with the amount of coverage provided in the lowest priced policy, then it is right for you The point here is to focus on the coverage first, not the price. Aferall, when you’re on your vacation and something happens, the last thing on your mind is saving a few dollars.
Prioritize your coverage so you know what you’re looking for
This is the most important. As we mentioned in the last section, price is not as important as getting the right coverage. But what coverage is the right coverage?
The best place to start is by prioritizing your travel insurance coverage. What is the most important to you and your family on this trip? Some people want to make sure they have very high emergency medical coverage, while others want to make sure their baggage is adequately covered. You should decide what is important to you, and put the different coverage options in order of importance.
For example: Richard is going to Africa in a month, and knows he needs travel insurance. Richard wants good emergency medical coverage, because last year his friend had an expensive hospital stay while abroad and he wants to avoid the same situation. He’s also concerned about lost or stolen luggage because he is bringing expensive safari gear.
In this example, Richard would focus on good emergency medical coverage foremost, followed by good baggage coverage. He is not as concerned with coverages like rental car damage, identity theft, or financial default, so these can be lower on his list of priorities.
What is the smart (and easy) way to compare travel insurance?
1. Decide which coverage(s) is most important to your trip
As we discussed above, the best way to start is to list the coverages that are most important to you, and put them in order of importance. The following is a list of typical travel insurance coverage and services; use this to come up with your own list:
- trip cancellation
- trip interruption
- terrorism
- financial default
- hurricane & weather
- travel delay & missed connection
- baggage lost, stolen, or damaged
- baggage delay
- emergency medical & dental
- emergency medical evacuation
- life insurance
- pre-existing medical condition
- rental car damage
- identity theft
- “cancel for any reason” or “cancel for work reasons”
To start, choose the 3 most important coverages for your trip, and put them in order of importance. Now you have a game plan, and you have a good idea of what you are shopping for. At this point, you are already 90% more informed than many travelers because you understand why you are buying the policy, and you’re making sure you get the right coverage.
2. Use a comparison engine to get multiple quotes
The next step is to get price quotes so you can start narrowing down your selection. The best way to do this is with a travel insurance comparison site. These websites function much like Expedia.com or Travelocity.com; you simply enter your trip information and they will automatically give you quotes from all companies, for all products. Remember, there are over 100 plans out there and you don’t want to go to every travel insurance site to enter your information.
The best comparison site to use is Squaremouth.com; they have the best tools for comparing policies. (Note: The quoted price is the same whether you use the insurance company website or the comparison site; they simply earn a commission which is paid by the travel insurance company when you purchase; again, like Expedia.com or Travelocity.com). Since the price is the same, you might as well benefit from the comparison shopping and use a comparison engine.
Here’s how to use the comparison engine:
- Click on this link to go to the comparison engine (will take you to Squaremouth.com)
- Fill out your trip details
- Click “Quote Now” at the bottom of the screen
- You will be taken to a result screen with the policies and companies listed on the left, and prices listed on the right
When the quote screen loads, you will see that they have an option where you can select several policies and compare them side-by-side. This will help you find the policy with the best coverage (according to your preferences); we’ll talk about this tool next.
Compare the policies side-by-side (this is the key)
Now it’s time to narrow down your choices using the side-by-side comparison tool. By default, this comparison engine lists “Travel Insurance” at the top. These policies, also known as “Package Policies”, are the most common type of policy purchased for most travelers. If you scroll down, you will see some specialty policies, such as Annual Travel Insurance and International Medical Insurance. Most likely, these are not what you are looking for.
Most travelers purchase a “package” policy (Travel Insurance, the ones listed at the top). They include a wide variety of coverage, and are perfect for most trips.
At the top-right corner of the page, you will see a “Sort by” drop-down. This drop-down gives you several different ways to sort the results, including “Price Low to High”. This is a good initial sorting technique, since all else being the same you want to pay the lowest price.
Next, on the left next to the company logo, you will see a small check box. This allows you to compare the policies side-by-side, and you can check as many boxes as you like. When you have selected several policies, click the orange “Compare” button at the top of the column. This will open a new window with the selected policies, price quotes, and coverage amounts.
What can I do with the side-by-side comparison tool?
- Read from left to right, following each line of coverage to determine the better policies.
- When you click any blue text, a small window will open with a definition/explanation.
- As you rule out individual policies, click the “Remove” button at the top to eliminate it from the comparison.
- If you see a drop-down box in the coverage area, it means you can adjust the amount and the price will automatically adjust.
Start with the coverage that you have determined to be of most importance. Remove the policies that don’t have adequate coverage for your criteria. When you reach the end of your list, take a look at the other coverages and you can decide if it is worth having. Sometimes 2 policies will be very similarly priced, but one will have an additional coverage. With everything else being equal, take the one with more coverage.
Buy the plan that fits your needs
Finally, when you have narrowed your choices down and decided on a policy, click the “Buy” button to enter your details and payment information. All travel insurance companies accept payment with a credit card online; it is a secure transaction. After purchasing your policy, you will receive an on-screen confirmation, as well as an email confirmation.
If you’re ready to compare travel insurance policies for your next trip, click here to begin.
