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A travel insurance premium is the amount paid for a travel insurance policy. Premiums depend on a variety of factors, including the vendor, the type of policy, the length of the policy, and the number of people covered. Travel insurance premiums are often calculated based on actuarial tables, which help determine the amount of risk undertaken by an individual traveler.
The amount of a travel insurance premium can vary widely. Many travel experts recommend getting quotes from several different vendors before deciding on a policy. Quotes may be available online from the vendors, through websites that compare vendor rates, or by contacting the vendor directly for a quote. Since premiums may be an important factor in determining a travel budget, it may be wise to spend some time searching for the best deal.
A travel insurance premium can be paid in a lump sum, but may also be divided into monthly payments. For single-trip insurance, it may be easier to get the premium out of the way by paying in full in advance of traveling. For annual policies, monthly payments allow the cost to be spread over time and prevent an enormous chunk of money from being removed at the outset of the policy.
When comparing travel insurance premium rates, look carefully at the services covered by the policy. There are several different types of traveler's insurance that may be customized to a particular trip or year of traveling. Some policies cover medical care, including prescriptions, doctor or hospital visits, and any treatment due to illness or accidents while in another country. Others refund the cost of cancellations or even non-refundable tickets due to illness, security warnings, or other emergencies. Comprehensive plans cover nearly every eventuality, from missed connecting flights to terrorist attacks, but often carry a heavy travel insurance premium.
In addition to the type of coverage desired, personal information and travel plans may also affect the amount of the premium. Older travelers, for instance, are more likely to need medical care while on a trip, thus may have to pay a higher premium. Traveling to places with high medical care costs may increase premiums, as can travel plans that include dangerous activities such as mountaineering. Visiting a country during a monsoon or hurricane season may also increase the premium amount.
Annual insurance plans may be less expensive overall for people planning to take more than one trip per year. Even if only one trip involves traveling abroad, it may be worth paying a little more for an annual plan than taking nearby trips with no insurance protection. To find out the best deal, compare the cost of annual plans to the premiums of short term plans for each trip. In some cases, one may provide a significantly better deal than the other option.