Tips for Saving Money on Travel Insurance


Ru Chen

- Updated June 27, 2024

Key Takeaways

  • Travel insurance usually costs up to 10% of your total trip expenses
  • Save by buying early
  • Compare insurers to find the best policy
  • Useful strategies can help you reduce the cost of travel insurance
Tips for Saving Money on Travel Insurance

Travel insurance can save you thousands of dollars in the event of a covered incident, medical emergency, or trip cancellation. However, it can get expensive. Comprehensive travel insurance can cost over $140, which can be a headache for many travelers.

Looking to budget for cheaper travel insurance? Let’s go over the best practical tips and strategies travelers can use to secure travel insurance without overspending.


Research and Comparison

Shop Around

Travel insurance costs, coverage, and claims processes can vary greatly depending on which insurance provider you choose. The best way to save money on your travel insurance policy is to compare different travel insurers and travel insurance policies.

Comparison websites and tools can help you compare quotes for travel insurance. A company like TravelInsurance.com or SquareMouth can help you quickly compare competitive quotes from leading travel insurance companies.

Read Reviews and Ratings

Customer reviews and testimonials can help you discern which travel insurance company is best for you. It’s important to see whether other travelers have had good claims experiences with an insurer. Read reviews to gain insight into the reliability and customer service quality of prospective travel insurance policies.

Policy Selection

Choose the Right Coverage

Travel insurance policies can cost hundreds of dollars or as low as $20. The cost of travel insurance greatly depends on what type of coverage you’re buying.

Here are the most common types of coverage for travelers.

Trip cancellation: Reimburses you a portion or all of the non-refundable, prepaid trip expenses (e.g. hotel costs) if the trip is canceled for a covered reason.

Lost luggage: Covers baggage and personal belongings that get lost or damaged while you’re on a trip.

Travel medical insurance: Covers emergency medical expenses that are incurred while you’re traveling.

Emergency medical evacuation: Helps you pay medical evacuation costs, which can be extremely expensive when traveling abroad.

Accidental death & dismemberment: Provides an insurance payout to your beneficiaries. Covers death and injuries caused by accidents.

Cancel For Any Reason (CFAR): CFAR trip protection lets you cancel your trip in most circumstances and receive a reimbursement for your prepaid, non-refundable trip expenses.

Take the time to assess your travel needs based on your travel plans and personal situation. If you’re taking along valuable personal belongings, you might want to select a lost baggage insurance policy with higher limits. Otherwise, you can settle for minimal baggage insurance.

It’s a good idea to avoid unnecessary add-ons that may be bundled automatically within a travel insurance package. For example, if you don’t plan on doing any extreme activities or adventure sports (e.g. scuba diving), you won’t benefit from paying extra for adventure sports coverage.

Consider Annual Policies for Frequent Travelers

Frequent travelers can save money and time by purchasing a multi-trip policy instead of the standard single-trip travel insurance policy.

A single-trip plan requires you to pay for the variable cost of insurance every single time. By choosing a multi-trip travel insurance plan, you can make unlimited trips to different places without worrying about losing coverage. However, annual travel insurance still has a duration limit that you need to know. A longer period of coverage means a higher cost of insurance.

The cost of a multi-trip or annual travel insurance policy is typically higher. While you can purchase affordable annual trip plans for less than $100, cheap policies usually only provide limited coverage. Since a standard insurance policy can already cost you over $100, multi-trip insurance policies are often worth it for frequent travelers.

It’s important to know that annual travel insurance plans focus on covering medical expenses. Finding multi-trip plans with add-ons and specialized coverage can be challenging. Take the time to research whether multi-trip options can help you save money while offering adequate protection.

Select a Higher Deductible

Travel insurance policies may come with deductibles, which are the dollar amounts you need to pay out-of-pocket for specific claim types before insurance kicks in.

By choosing a travel insurance policy with a higher deductible, you can lower your insurance cost.

Many travelers prefer to choose a higher deductible that covers catastrophic costs so that they can save on travel insurance cost. Evaluate the trade-off to see whether the policy still comes with suitable financial protection based on your specific needs and circumstances.

Opt for Basic Coverage

There are two types of basic travel insurance: travel medical insurance and trip protection plans.

Travel medical insurance: Covers emergency medical expenses for when you are traveling abroad. Be sure to choose a suitable deductible and coverage limit for your travel medical policy.

Trip protection insurance: Reimburses you in case you need to cancel or delay your trip due to a covered reason. Also covers trip interruptions, lost luggage, and other common trip-related expenses.

If you don’t need more complex or comprehensive coverage, a cheap basic travel insurance plan may be preferable.


Timing and Purchase Strategies

Buy Early

Buy insurance as early as possible. As with other bookings and preparations for travel, travel insurance is often cheaper if you buy it early. Buy soon after booking your trip so you can quickly activate your coverage, ensuring that it covers trip delays and cancellations that might occur before your trip. Late insurance may not provide sufficient coverage.

Early purchase can also lead to better prices. Travel insurance providers encourage buyers to purchase policies early by offering discounts.

Look for Discounts and Promotions

Travel insurance providers often use seasonal promotions and discounts to attract travelers. If you’re shopping for travel insurance during the summer or winter, watch out for seasonal discounts and bundles.

It’s also a good idea to check if there are any special rates for groups, families, or specific organizations. By using discount codes and rates, you can benefit from substantial savings.

Consider Bundling

Bundling your travel insurance policies can help you secure a lower overall cost. You can either bundle your travel insurance policy with another type of travel insurance policy, or you can explore other packages.

Travel insurance can often be purchased with home or auto insurance. The potential savings from combining different types of insurance can help you save a sizable amount of money each trip.

Avoid unnecessary coverage

Travel insurance can be comprehensive and offer broad coverage, but not all travelers benefit from every coverage type.

For example, if you have health insurance that covers domestic medical expenses and you are traveling domestically, you may not require a travel medical insurance policy.

Here are other forms of travel insurance that you may not need.

  • Accidental Death & Dismemberment Insurance: AD&D insurance essentially serves as life insurance for travel. Travelers who already have life insurance might find AD&D insurance policies a redundant expense.

  • CFAR Insurance: The ability to cancel your trip for any reason and receive a reimbursement is fantastic. However, consider whether paying extra for CFAR is truly worth it for you. Review the standard covered reasons to see whether a regular trip protection plan will suffice.

Leveraging Memberships and Credit Cards

Use Credit Card Benefits

Credit card issuers often provide travel benefits and memberships. Before paying for trip expenses, review your credit card benefits to see whether they come with travel insurance perks. Many credit card companies offer complimentary travel insurance if you use their cards to book a trip.

Premium credit cards tend to offer more comprehensive travel insurance coverage. Use them to maximize your travel insurance value.

Make sure you understand the extent of coverage and limitations that are associated with credit card travel benefits. For example, if you purchase a ticket using credit card travel points, this expense may be excluded from trip cancellation coverage.

Leverage Travel Club Memberships

Travel clubs and organizations offer a wide variety of travel benefits for their members. Check out your club benefits to see if you can unlock access to discounted travel insurance rates.

Evaluating Exclusions and Conditions

Understand Policy Exclusions

An insurance exclusion refers to a peril or reason that is not covered by your policy. Here are some common travel insurance exclusions to know about:

Known storms: Hurricanes that have been named and other foreseeable extreme weather events will not be covered by travel insurance.

Pre-existing conditions: Health conditions that are diagnosed before your trip will be considered pre-existing conditions that are excluded from travel insurance coverage.

High risk activities: Adventure sports and other high risks activities are excluded from standard travel insurance policies.

Medical tourism: If you’re traveling to obtain a specific medical procedure abroad, insurance will not cover the related expenses.

If you have any special circumstances or risks that you want covered, it’s crucial to choose a policy that provides coverage. Add-ons and customizable travel insurance policies can help you tailor a policy to suit your needs.

Check for Pre-existing Conditions Coverage

When buying travel insurance, travelers need to disclose their pre-existing conditions. Any existing health conditions need to be known by the travel insurance provider. Otherwise, they may reject your insurance claim in the event of an incident.

You can still obtain travel insurance coverage for pre-existing conditions. A pre-existing medical condition exclusion waiver will be required. While the initial cost of tailored coverage may be more expensive, it is generally worth it for travelers. In case of a medical emergency during a trip, suitable insurance can prevent a significant amount of financial strain.

Review Cancellation Policies

Travel insurance typically covers trip cancellations. However, these cancellations come with terms and requirements. The reason for trip cancellation, delay, or interruption needs to be covered.

Even Cancel for Any Reason insurance (CFAR travel insurance) has limitations. Cancellations usually need to occur over 48 hours before the designated starting date of your trip. If you cancel too late, your insurance claim may be rejected.

Tips for International Travelers

Travelers who need international travel insurance may find the insurance shopping process more complex. Here are some useful tips that can help you determine what policies best align with your needs.

Consider Local Insurance Providers

If you’re traveling internationally, it may be more cost-effective to purchase a policy from a travel insurer from your destination country.

Local providers can potentially offer you more affordable policies depending on the insurance type and location.

Understand Currency Exchange Impact

If your home currency fluctuates against the currency of your destination, this could impact your overall cost of insurance and travel. This usually happens if you purchase travel insurance from a foreign insurance provider or if your insurer calculates costs based on the destination’s currency.

Look at Multi-trip Policies

Frequent fliers and business travelers should consider multi-trip travel insurance policies. The standard travel insurance policy only provides coverage for a single trip. This means if you head back to your home country or your coverage period ends, you will no longer be protected by travel insurance.

Annual travel insurance policies allow you to take as many trips as you want during the coverage period without worrying about trip limits. Anyone who travels internationally multiple times a year can benefit from multi-trip travel insurance.



Travel insurance offers valuable protection. To save money on travel insurance while still obtaining good coverage, keep these tips in mind.

  1. Compare travel insurance policies
  2. Buy early
  3. Choose annual plans or bundles
  4. Use credit card and travel club benefits
  5. Reduce coverage scope
  6. Increase deductible
  7. Consider destination-specific/local insurance plans

Finding a good travel insurance provider can positively impact your travel experience. Here are top travel insurance companies that can protect you during your travels.

  • Faye
  • TravelInsurance.com
  • Generali Global Assistance
  • SquareMouth

About The Author

Ru Chen

Ru Chen

Content Writer

Ru Chen is a content writer with several years of experience in creating engaging and well-researched articles. She mostly writes about insurance, business, digital marketing, and law. In her free time, she can be found watching horror movies and playing board games with her partner in Brooklyn.

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