In this era, people are focused on competing with the dynamic nature of this world in its fast-paced environment to survive and thrive in their lives while aiming for their passions and interests. The time to provide an ample amount of rest to the body and relax the mind has become scarce and, as a result, people usually lack peace of mind. This has led to the change in the trends of spending patterns as people now spend more on leisure activities to freshen up from the gloom of a constant working in life. There are many activities that serve as good distractions from the work, but there is nothing that is better than a few days off spent on a trip.
Traveling can be rejuvenating to the mind and reawakening to the human spirit to carry on in life, but being away from home on a trip in unfamiliar environments can be daunting and, in some circumstances, dangerous as well. This makes it necessary to be ready for unforeseeable situations while on a trip in order to carry forward and cherish the peace of mind brought by the tour without worrying about what might happen.
This is where travel insurances come into play. They are a great way for travelers to let go of their monetary fears. These insurances can minimize the financial risks of traveling such as accidents, illnesses, or cancellation of a trip due to unpredictable circumstances.
But how much does travel insurance cost?
Travel insurance will not be the same for all, so the price and conditions of a plan will vary. However, in general, travel insurance plans cost anywhere from 4% to 10% of the total prepaid, non-refundable trip cost.
For instance, if a prepaid trip costs $6,000, a travel insurance plan can cost between $240 and $600. It must be remembered that certain factors will affect the cost in different ways. In some cases, the ‘budget’ plans can be lower than 4% of the cost of the trip, and the high-end plans can cost around 12% of the prepaid trip fee.
The cost of a plan depends on several factors, some of which are:
Total trip cost – the cost of several plans ultimately depends on the kind of trip one is getting the insurance for and it is mostly a percentage of the total costs.
Age of travelers – senior citizens with ages over 60 are always expected to pay increased rates, which grow dramatically every decade over 50. The reason is that the elderly are more prone to travel risks, compared to other age groups, and there is a higher chance that they will claim some costs to the company. On the other hand, children of age 17 or below face some inexpensive rates and they can even have a free claim in some cases.
Duration of the trip – it is evident that the longer the trip, the more risk is involved with the travel and, hence, increased rates have to be paid for a year-long trip compared to a one week vacation.
The number of travelers – the same rules as with the duration of the trip since the greater the number of people, the greater the risk will be.
Type of coverage – there are several options available to people for their coverage. Some options are cheap, while others can increase the rates of insurance.
How to spend less on travel insurance?
There are several types of packages in the market and most firms offer comprehensive packages with a lot of features that increase the costs of the plans. Some of these features might not be needed by certain individuals.
Before purchasing a plan, shop around for packages that offer coverage according to your needs, so you don’t have to pay for unwanted features.
Should an average working Joe get travel insurance?
The need for travel insurance on different trips will vary with every individual and every trip. For instance, a young man on a trip with his parents having poor health back at home is more likely to cancel the trip compared to a lady who is enjoying the company of her husband on a vacation with no other attachments back at home.
Regardless of the situation, it cannot be debated that in the case of unanticipated conditions, travel insurance can alleviate a lot of financial burden from a person.