Buying annual travel insurance

If you are an occasional traveler, you’ll probably buy your insurance from your travel agent each time you travel. However, if you travel at least twice per year, it is more cost effective to buy an annual travel insurance.

Although annual travel insurance is not compulsory, it does give you the peace of mind in case of any eventualities such as loss of personal effects, illness, or accidents. Some people take the risk of traveling without an insurance. Although initially they may save paying out for the premium, in case something goes wrong, the total costs can add up to several thousands of dollars. In which case the saving on the premium is false economy.

One of the first ports of call is your bank. In recent years banks have diversified into many fields, and their rates can be competitive. Furthermore, if you are a ‘valued’ customer, your bank may offer a very low premium.

The next logical place is your credit card provider. Credit card companies do not always offer the lowest rates. But in case of loss of your credit card, there is the added advantage of receiving a replacement card- sometimes within a few hours.

Another popular source for purchase is your insurance company responsible for your other aspects such as your home or car. Because you already use their services, they may be able to offer a low premium, or a discount for your travel insurance.

It is important to check carefully your home contents insurance policy. This is because some home policies cover personal items, even if you are away from home.

For last- minute purchase of travel insurance there is always the airline or companies at the airport. But in most cases their rates are higher.

Do not be complacent. Travel insurance from different companies are not identical. As well as price differences, there may well be limits in the types of personal items covered. Some policies may only cover a certain number of journeys. In many cases there is also an upper age limit.

Generally you’d expect your policy to include such eventualities as loss or damage to property, flight delays and cancellations, accidents, and illness.

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