Many people purchase travel insurance without first reading the fine print; they discover afterwards that they have, in fact, paid for services that they did not require. Of course, security is critical in such situations, but not every additional service makes sense.
After all, certain add-ons only boost the overall cost without increasing your level of security. The following are frequent overpayments made by travelers:
1. Paying Twice for Medical Coverage
Many people are not even aware that their regular health insurance offers emergency care in foreign countries. The U.S. Centers for Disease Control and Prevention suggests reviewing the existing plan to prevent unnecessary double-spending.
Incredibly, there are some credit cards that also offer some medical coverage if you book your flight with them. Thus, aligning your regular health plan with your travel plan might save a couple of dollars on a double speed for the same type of service.
2. Overpaying for Trip Cancellation Add-ons
While trip cancellation insurance can be useful, it typically doesn’t justify the cost. Some buyers end up paying more for booking “cancel for any reason,” even if they’re already sure their plans won’t change. Forbes Advisor claims that in winners’ cases, such upgrades boost the price by as much as 50% and are nearly never used.
You probably don’t need the full package if all your flight and hotel bookings are refundable or flexible. According to the Insurance Information Institute, stick to basic protection from emergencies, illness, natural disasters, and such.
3. Insuring Every Gadget Separately
Most of the travelers often confuse that they need to insure each of their devices: phone, laptop, camera, and smartwatch. However, their home insurance already covers some of the costs associated with these devices. High-paying people often use Gadget Insurance due to Aviva’s low claim rates, according to the MoneySmart consumer site.
If your home insurance covers theft and damage in your home or as part of renters’ insurance, you do not have to pay twice. Consumer Reports to keeping receipts and photographs of your electronics before your trip. This is usually enough to challenge unsuccessfully acquired insurance.
4. Paying More for Age or Adventure Activities
Although higher premiums tend to target older travelers and adventure lovers, in many cases, the prospective risk is not as high. According to the Travel Insurance Review, such activities as hiking, snorkeling, or cycling are generally included by default and do not require an “extreme sport” fee.
Always review your insurer’s activity list before any additional purchases. National Seniors Australia advises shopping around, as some companies do not jack up the prices until a much older age. A little investigation could save you a significant amount on previously considered age factors or the costs of unreasonably proposed extra services.
5. Buying Insurance Directly From Airlines or Booking Sites
Airline policies are typically third-party plans that come with additional markups and fewer inclusions. The Choice Australia consumer group argues that standalone travel insurance policies usually offer better protection for less money.
Before you click on “add insurance” at checkout, take a few minutes to compare. Competitive websites such as Canstar allow you to review inclusions, exclusions, and price discrepancies with minimal time and effort. Most of the time, you can purchase an independent policy for less money that offers wider coverage.
Buy Smart, Not Expensive
It is important to remember that travel insurance should provide you with safety and comfort rather than additional features that will never be helpful. The most expensive policy is the one that best fits your trip, health, and budget, not the one that covers the most irrelevant services.
