How to save money on travel insurance

January 29, 2014 Off By Laura TMOT

The insurance market is an increasingly diverse entity, with an increasing array of products and derivatives available to consumers. Take winter sports insurance, however, which has come under the spotlight in recent times with the Winter Olympics scheduled to start in Sochi, Russia next month. This constant evolution can make it difficult for regular citizens to keep pace with the market, especially when it comes to accessing affordable deals and saving money on family holidays.

How to Save Money on Travel Insurance for a Family Holiday

As a parent with a young family, traveling abroad can be an extremely costly exercise. This is primarily due to the lack of financial literacy and awareness that exists among British citizens, who should consider the following steps in the quest to save money: –

1.      Always Source Insurance from an Independent Provider

As a general rule, you should never purchase insurance from a travel agent or a tour operator. This almost certainly will cost you significant sums of money, as will the process of attempting to procure last minute coverage from an airline. In fact, your best bet is to identify independent and reputable insurers such as One Insurance, who are more likely to offer reduced costs and financial incentives. It may also be worth checking with your bank to see whether they have an account option that includes travel insurance, as all that may be required is a simple upgrade.

2.      Determine your Required Level of Coverage Prior to Comparing the Market

Before you hit the price comparison market, it is important to understand the precise type of coverage that you are likely to require. If you are taking a series of high-tech gadgets such as your iPad, laptop and smartphone, for example, you will need a policy that reflects this and the value of these particular items. Without this, you run the risk of losing money in the long-term by choosing a policy that is unfit for purpose.

3.      Be Sensible when it Comes to Establishing the Excess

For those of you who are not well versed in the arts of insurance, the excess is the amount that would you pay as the policy-holder towards any particular claim. Should you submit a claim in the amount of £600 on a policy that has an excess of £150, for example, you  would be required to pay a total of £150. While this encourages many individuals to set a high excess as a way of reducing the cost of the policy, however, this often undermines the value of the coverage and leaves you ill-equipped for travel.