Choosing the Right Policy Maximum for Your Visitors Insurance
Most visitors insurance plans have multiple policy maximum options, but how do you know which is the right amount to choose? The policy maximum is the maximum amount the travel insurance company will pay for covered expenses. Depending on travelers’ ages, visitors insurance policy maximums typically range from $10,000 to $8 million worth of coverage. The higher the policy maximum you select, the higher your insurance premium will be.
It is up to you to choose a policy maximum; it is not automatically chosen for you by the insurance company. Therefore, it is important to learn how to determine the coverage limit that is right for you.
How Much Coverage Do I Need?
You may not always need the visitors insurance plan with the highest policy maximum, even though it provides the most coverage. However, do keep in mind that choosing too low of a policy maximum could leave you liable for paying the remaining medical expenses that exceed your policy’s limit.
How high of a policy maximum you need depends on a few factors:
- Trip destination
- Length of trip
- Planned trip activities
- Age of travelers
The cost of healthcare in the US and Europe is much higher than the rest of the world. Take this into account when choosing your policy maximum. If you require emergency medical evacuation while traveling in the US, a visitors insurance plan with a $20,000 policy maximum may not be enough coverage. Research the cost of healthcare in the country you will be visiting to help you better estimate a sufficient policy maximum.
Length of Trip
Travelers who will be away for a long period of time should consider a higher policy maximum. You are more likely to incur a higher amount of expenses in a span of 6 months than you are in 6 days. Likewise, it is unlikely that trips lasting a week or two will need a policy maximum of $8 million.
Planned Trip Activities
A higher policy maximum may be a good choice for travelers planning to do a lot of sightseeing, walking, or other outdoor activities. Certain activities like skiing and hiking may not be covered by your policy and may require additional adventurous and hazardous sports coverage.
Senior travelers have fewer options when it comes to policy options. Visitors insurance for seniors over 80 often has a low policy maximum, because travel insurance companies consider elderly travelers as higher risk than younger people. Younger travelers may be able purchase a policy with up to an $8 million policy maximum, but few plans for travelers over 85 offer more than a $50,000 policy maximum.
These criteria should help you make a more informed decision when selecting a policy maximum for your visitors insurance plan. Policy maximum is one of the factors that affect the cost of visitors insurance, but remember that a higher policy maximum means less liability for you, and a lower policy maximum means less protection and higher risk. By paying a higher premium for a greater policy maximum, you may reduce your liability in case you have to use your insurance.