Finding cheap holiday insurance is a top priority when you’re traveling on a budget. But bear in mind before you make a decision that the cheapest travel insurance is not always the plan with the lowest price tag. You have to make sure the insurance plan you choose covers you for all your biggest risks while still being affordable. One insurance plan may be cheaper than another, but it may also offer more limited coverage. Your goal is to find the most comprehensive plan at the lowest rate.
For a bare-bones single trip insurance plan, you can pay as little as 5 pounds in the UK or 7-8 dollars in the US. For a low-cost annual coverage plan you can expect to pay as little as 35 pounds in the UK or 40-45 dollars in the US.
Single Trip or Annual?
The first thing you should consider is whether you want to buy insurance for a one off trip or for the long term. Single trip travel insurance is ideal if you don’t travel much. Annual travel insurance is better if you intend to travel a lot, or at least more than once a year. The other upside of having annual travel insurance is that you don’t have to organize coverage for every trip. Take the amount of traveling you do into account before you decide which way to go.
Cheap Holiday Insurance Providers
There are dozens of low-cost holiday insurance providers all over the world. Here are a few:
- Atlas travel insurance
- All Clear travel insurance
- NTUC travel insurance
- Mondial travel insurance
- Halifax travel insurance
These are just a few examples – you may be able to find cheap holiday insurance deals from local insurance providers in your country.
What Affects Insurance Prices?
The Cost of the Trip
For standard trip interruption insurance, the cost of the insurance plan will be directly related to the cost of the trip being insured. This is basically so that if something goes wrong and you have to abandon the trip early, you won’t have to forfeit fees you’ve already paid to book flights, hotels and so on. So the longer and more expensive your trip will be, the more you’re likely to pay in insurance premiums.
Depending on how you buy your insurance, you may get stuck paying agent fees. You can usually avoid this by purchasing your insurance directly on the web. If you go through a travel agent when you book your insurance you’re likely to end up paying extra.
Save by Buying Online
The web has made it easier than ever to book insurance – and in most cases you can also save money by booking online. Most insurance companies offer a discount for online bookings (usually around 10% off).
Watch Out for Hidden Fees
Some travel insurance packages appear cost effective on the surface, but they include hidden fees that aren’t included in the price ticket you see. Have you ever seen zero-interest credit cards which have a bunch of cancellation and late payment penalties attached to them? Similar products exist out there when it comes to cheap holiday insurance, so make sure you read the fine print to avoid getting a cheap travel plan which turns out to be rather expensive in the long run.