The Factors that Affect Premium Cost While Buying a Visitors Insurance Policy
How much does visitors insurance cost? Just as there is no one policy that is a perfect fit for every traveler, there is no one set cost for visitors insurance. Your travel medical insurance premium is based on certain factors such as age, trip duration, and optional coverage benefits. If you are over age 60, traveling for a longer period of time, or need certain additional coverage options, your travel medical insurance cost may be higher.
Factors That Determine Visitors Insurance Cost
The cost of travel medical insurance may be higher or lower depending on the following factors.
- Length of trip. The longer you are away, the higher the probability that you will fall ill or become injured during your trip. Therefore, your premium will be higher.
- Age of travelers. Since older travelers are more susceptible to illness and injury, the cost of travel medical insurance goes up with age.
- Trip destination(s). Travel medical insurance may be more expensive depending on the country or countries where you are traveling. For example, the medical costs in the US are extremely expensive, so visitors insurance for the US will cost more than many other countries.
- Pre-existing conditions. Travelers with pre-existing conditions are more likely to file a claim, and as a result, may have to pay a higher premium.
- Travel insurance package plan. If you choose to purchase a travel insurance package plan, in addition to travel medical coverage, you may have trip cancellation, trip interruption, and baggage loss coverage as well. With more coverage comes a higher cost.
- Policy maximum. Some visitors insurance plans have coverage limit options for certain benefits. The higher policy maximum you choose for an area of coverage, the more costly your premium will be.
- Coverage type. You can choose to purchase a limited or comprehensive coverage plan for your visitors insurance. Since a comprehensive policy provides more coverage, it will have a higher cost.
Additional Insurance Coverage Options
Adding additional coverage options to your travel medical insurance plan will increase your policy premium cost. Examples of coverage options that will raise your visitors insurance cost include:
- Hazardous sports
- Cancel for any reason
- Rental car coverage
- Identity theft protection
Overall, the main contributing factors that affect the cost of visitors insurance policies are the travelers’ ages, length of trip, and any coverage add-ons. Factors that the insurance company considers high risk, such as old age, long trip duration, and pre-existing conditions, often result in a higher premium. Plan choices such as type of coverage, package plans, and coverage limits also affect premium cost.
Depending on your specific trip and medical concerns, you may have to purchase a more expensive policy. Even if your policy seems expensive, it will ultimately save you thousands in medical bills if otherwise traveling without insurance. However, you can save on your insurance premium by knowing what you need in a policy and shopping carefully.