Watch our video explaining what goes into the costs of travel insurance
Wondering about Travel Insurance costs?
Are you wondering what affects the cost of travel insurance and how you can save money? In this video we will try and demystify the cost of travel insurance and help you find some ways to manage it.
There are four key factors that affect the cost of medical care, and ultimately, affect how much you pay for travel insurance:
The first factor is your age
As we age, the likelihood that we will require medical care increases. This increases the cost for travel insurance coverage. Once you reach a certain age, typically 55, insurance companies require you to fill out a medical questionnaire to review your health. Not only does it help them assess your health, but it also allows them to advise you on the best coverage to meet your medical needs.
The second factor that affects the cost of medical care is the length of your trip - The longer someone is away from their home province the more likely they will need medical care for something that can’t wait until they get home.
The next factor is your health - Simply put, the healthier you are, the lower your premium will be. Having certain pre-existing conditions, or combinations of conditions may have drastic effects on the price of your insurance premiums. However, it will vary depending on how the insurance company views that particular pre-existing medical condition.
The last factor is your destination - The cost of healthcare at your destination can significantly impact your cost of coverage. The U.S. is the most expensive country in the world for medical care. A single day in a US hospital can run as high as $12,000!
Emergency medical transportation back to Canada from a distant or remote location can also be extremely expensive.
Many people believe that they have no control over the price they pay for travel insurance; however, there are a number of ways to save on your insurance costs:
• Increase your deductible
• Choose a deductible that you would feel comfortable paying out of pocket in the event you have a claim. You won’t be covered for the entire claim, but you’ll still be protected against more serious situations.
• Ask about discounts
• Many insurance companies offer discounts through family plans. Purchasing a family plan or buying coverage for multiple travellers at a same time can save you money over buying individual policies or coverage at different times.
Some companies offer discounts for purchasing coverage at certain times of year. Even those that don’t offer seasonal discounts will notify brokers of upcoming price changes. We can help you determine when the best time to purchase is.
• Opt for multi-trip annual plan coverage
• If you are taking multiple trips per year, look into a multi-trip annual plan. These plans provide coverage for trips of a set duration during a 12-month period, and often cost less than purchasing separate coverage for each trip. On top of the cost savings, you will also save yourself the hassle of purchasing a policy for each trip.
Check your destination
If you are flexible on your destination, you may be able to save money by selecting a destination with lower medical care costs. We can help you with this.
There are also two important things to avoid in an effort to save money.
Completing your questionnaire inaccurately. Some people don’t fully disclose their medical condition, worrying it will increase their premium. But if they have a claim, any undisclosed medical condition may result in invalid coverage. Being upfront about your medical conditions will save you money in the long run.
Going with the lowest quote. Not all coverage is the same. We can help you compare plans, deductible options and provide advice on which companies give you the best value.
We invite you to speak with us. Saving money is great; however, saving on your premium at the expense of getting the protection you need, can cost you a lot more in the long run. We’re here to help you make well-informed choices about your travel insurance coverage.
For more information on the cost of insurance or our other travel insurance topics, please visit our website at www.mediquote.ca