How Much Does Travel Insurance Cost?

Travel- a single word that can lighten up even the dullest day! What better way to discuss it than go down the memory lane-

For most of us, our first adventure began when we didn’t understand the word “travel.” Do you remember clutching your mom’s saree and dad’s hand while they introduced us to this beautiful world? Little did our younger selves know back then that growing up, we would be juggling with so many things, that too with skill.

Some travel often, and others- as part of their daily life schedule. You must have heard of Travel Bloggers, and influencers who make a point to capture every moment of their journey through vlogs and present an exciting tale filled with scenes and stories.

Krish, a 28-year-old Software Engineer, is one such vivid traveller. He made a point to refresh his passport every quarter, and this time- he decided to take a major dip in his savings and book a flight to The Land of Smiles”, Thailand. Known for its stunning beaches, yummy food, and varied culture, Krish was no less excited than a baby getting his favourite candy. Drooling, no?

He packed his bags, booked his flights, and planned a complete itinerary. Just then, a friend asked him, "Do you have travel insurance?" Hearing this, Krish went into the loop of thoughts and questions-

“Do I really need travel insurance?

What does it cover?

Is it expensive?”

Have you ever been in Krish’s shoes? Or are you planning for a next trip? Then, hold your horses. Before you get all into packing, check out our detailed guide for Travel Insurance.

Ready for some quick knowledge rev-up? Scroll Down!
 

Travel Insurance

It is a type of insurance that acts as your safety net while you are out there exploring the world. Have you seen a ship? Against the rough waves, to let it not stray away, it is held by an anchor. Even the biggest of ships has an anchor that keeps it safe from wavering away. In the same way, when you are exploring new places, a travel insurance policy becomes your anchor. It becomes your shield for unexpected costs and mishaps that could otherwise derail your journey.

As you plan your next adventure, there is one important detail that you shouldn't overlook!!!

For instance,

Let’s say you plan to go to Maldives. You are leaving in 2 days, but suddenly, you have an important marriage that you have to attend next week. This means that you will either have to cancel or cut short your trip. But what about those non-refundable expenses? With a travel insurance policy in place, these expenses are covered.

In the event that you become ill or are injured when travelling overseas, you can also make use of the medical coverage. Additionally, emergency evacuation guarantees that you can get to a qualified medical facility without having to worry about paying for it.

Lost luggage? Delayed bags?

No problem! Your policy reimburses you for these hassles. And if your departure gets delayed, it helps cover the extra costs. In case of a serious accident or, worse, accidental death and dismemberment, benefits offer financial aid.

Beyond financial protection, many policies come with round-the-clock assistance. So, whether you need a medical referral or help to replace a lost passport? Travel insurance has got you covered.

The thrill of travel begins with preparation - starting with comprehensive insurance coverage. But wait, it's crucial to understand all the nitty-gritty of your policy to make sure it suits your specific travel style. Because when you are out there discovering the world, peace of mind shouldn't be something you leave to luck, right?
 

How Much Does Travel Insurance Cost?

The cost of travel insurance is not a one-size-fits-all scenario. It hinges on a few key factors, including -

• Your age,
• Your duration of travel, and
• The level of coverage you are looking for.

Generally, you might end up shelling out between 4% to 8% of your total trip costs for insurance. Let's break this down with an example of Shankar -

Shankar is Krish’s friend. He is a 30-year-old bank employee. He booked a trip to Europe, which will cost him around Rs. 2 lakhs. For Shankar, travel insurance can cost anywhere from Rs. 8,000 to Rs. 16,000. But what if his dad accompanies him? Let’s assume that his dad is 70 years old. The insurance cover for his dad could go as high as 15% of the whole trip budget! Why? Well, older age brings higher risk and more chances of needing to claim insurance.

And here’s another thing that you should consider -

Your choices really matter when it comes to insurance costs. Take, for example, adding coverage for "baggage loss". This could bump up your policy price beyond the basic premium. So, when all is said and done, your final bill depends on various factors like your age, the total trip expense, and which coverage options you decide to go with.

Now, let's unpack why travel insurance isn't just an option but an essential part of any travel checklist.
 

Factors That Impact The Cost Of Your Travel Insurance

Insurers consider several factors while calculating the cost of your travel insurance. Let's understand them one by one -

1. Trip Cost:
   Your total trip expenses play a huge role here. Remember, the more you plan to splurge on your adventure, the higher your insurance premiums are likely to climb.
    
2. Age Of The Traveler:
   Age matters! People over 70 years tend to see higher premiums. But this is not ageism; it is simply the fact that older travellers might need a bit more coverage due to health concerns and potential claims.
    
3. Length Of Your Trip:
   Are you planning a long getaway? Then, be ready to pay higher premiums. Because the longer you are away, the more chances there are for things to go wrong.
    
4. Where You Are Headed:
   Your travel destination is another important factor that decides your insurance cost. Some places just cost more to insure. This may be due to high healthcare costs, crime rates, or political instability.
   
   For example,
   After his trip to Thailand, Krish is now booking a package to tour around Canada. When he bought insurance, he found that the cost was higher than what he paid for his Thailand trip. This was because of the higher standard of living, which correlates to higher premiums.
    
5. Type Of Coverage And Extras:
   Your choices also matter when it comes to insurance costs! The type and extent of coverage you choose have a say on your premium. Want to add "baggage loss," "adventure sports," or "trip cancellation" options? These extra add-ons will definitely bump up the price.
    
6. Pre-Existing Medical Conditions:
   When you have a pre-existing medical condition, you may also have to pay higher costs for your travel insurance. This is because insurers see you as a higher risk for medical claims. And how do they cover that risk? With higher premiums!
    
7. Coverage Limits And Deductibles:
   Do you know what else impacts your policy costs? If you choose higher coverage limits and pair them with lower deductibles, you will likely pay higher premiums. And if you opt for lower coverage limits and higher deductibles, you can save more.
   
   However, you should remember that adequate coverage is more important when you think of unexpected events.
    
8. Number Of People Traveling:
   The number of people you wish to cover under the policy will also make a difference. Family plans or policies covering multiple travelers often have different pricing compared to individual plans.
   
   For example,
   Krish is booking yet another trip. This time, he is travelling to Bali for his honeymoon. While booking his trip, he also purchases travel insurance for both of them. This time, he had to pay higher premiums than when he was flying solo.
    

Wrapping Up!

Whether you’re Naina from YJHD or Liz from Eat, Pray, and Love, if hitting the road is your way of shaking off life’s stresses, then we have got you- of course, with Travel Insurance.

Talking about travel insurance, as discussed above, is the savvy choice among travelers. But just in case you are even a tinge-bit worried about whether it’ll become a burden on your pocket, then hold a second and take a deep breath- as it can be more affordable than you think! The deal is based on various factors, such as destination, length of the trip, and, yeah, your age!

Need more insights?

Imagine yourself in a medical emergency while travelling overseas. Hefty bills and doctor consultations are taking a dip in your online wallet! Wouldn't you want to be secured with a well-suited travel insurance plan?

So why wait?  Compare different plans and choose the one that fits your needs well. Next time, before you pack your trekking shoes, don’t forget to strap yourself in the security of a travel insurance plan.