People like to travel from one place to another in search of a job, studying in their own country or abroad, tourism, adventure sports, and many others. Many people are unaware that they can purchase a travel insurance policy for their travel. It is a good option for frequent travelers as the insurance covers various options like loss of baggage, loss of documents, delayed travel, canceled trips, and many others. There are many companies in Singapore like MoneyIQ that provide travel insurance as per the requirement of the buyer. People need to select such a policy that they can afford and there are many factors that affect the cost of travel insurance. In this article, we will discuss those factors.

Factors Affecting the Travel Insurance Cost

There are only two factors that determine the cost of travel insurance and these are discussed here.

Trip cost

Trip cost may include various things like trip cancellation and trip interruption. In such a case, the cost of insurance will be determined on the basis of these benefits. People can claim for trip cancellation if the trip is canceled. Reimbursement will cost more to the people. People need to make a quote in order to meet the trip costs. Besides hotel fare and travel tickets, there are many more expenses that a traveler has to bear. Some of them include passes for the theme park, eating and drinking in a restaurant, cruise ship, and many more.

Age

Another factor that affects the cost of travel insurance is the age of the traveler. People having old are more prone to diseases in comparison to the young generation. This is the reason for the rising in the cost of insurance with age. Old people should not worry about the cost of insurance as they can make a quote and then choose a plan which will suit their budget. People need to compare the plans of all the companies that provide travel insurance and then choose the one, which suits them.

Factors That Do Not Affect the Travel Insurance Cost

There are many factors that do not have an effect on the cost of travel insurance and these are discussed here.

Destination

People always need to know the cost of travel insurance. The destination can be a few hundred kilometers to thousands of kilometers. There is no effect on the cost of travel insurance. People can travel anywhere but the cost of insurance will be the same. If people are going to a risky destination, then people have to purchase such plans, which consist of higher limits for different types of emergencies like medical, transportation, etc. It will cost more for transporting people from one place to another due to medical evacuation.

Length of the Trip

People also ask questions regarding the cost of travel insurance if the duration of their trip is from a few days to a month or longer. There is no effect on the cost of insurance. There can be travel insurance if the trip is for more than 180 days. This plan will cover only medical expenses and loss of baggage or essential documents will not be covered.

Claim History

Claim history does not have any effect on the cost of insurance. In the case of car insurance premiums, when people make a claim, the premium rises very high. In the case of travel insurance, if a claim is made for canceling a trip, it will not affect the cost of insurance for the trips to come.

Medical History

The insurance company does ask people about their medical history when they come to purchase a travel insurance policy. This factor does not affect the cost of travel insurance. It will neither increase the cost nor will decrease even if a traveler is suffering from chronic disease. If there is an existing medical condition, people can either cover it or not in the insurance policy. If a traveler opts for it for himself, his family member, or companion, the company records it as an illness or injury.

Reducing Travel Insurance Cost

In order to reduce the cost of travel insurance, people need to check all the policies and choose the one which has most of the benefits but is available under their budget. People can go for domestic insurance if they want to travel within the country. In the case of traveling abroad, international travel insurance is also available. People can go for single or multiple trip insurance policies and they should check the things that are covered in each policy.

Wrapping Up

Trip cost and age are the two factors, which are considered to increase or decrease the cost of the travel insurance policy. Other factors like destination, chronic illness, etc. have no effect. People need to choose the policy, which comes in their budget.