Travel insurance comparison site Squaremouth has highlighted key tips to help travelers avoid overspending on their travel insurance policies. Understanding what not to include in a travel insurance quote can lead to significant savings without compromising on essential coverage.
Refundable Trip Costs
Travelers often make the mistake of insuring the entire cost of their trip, leading to higher premiums. Squaremouth advises that travelers should only insure the pre-paid, non-refundable expenses they would lose if they were unable to take their trip. This includes airfare, hotel accommodations, tours, and excursions.
Buying Tip: Only insure the penalty amount required to cancel one of your trip expenses, rather than the full cost. For instance, if canceling a hotel reservation incurs a penalty, insure only that penalty amount.
READ MORE: Alaska Airlines Expands Winter Travel with 18 New Routes to Sun and Ski Destinations
Credit Card Points or Miles
According to Squaremouth survey data, over 20% of travelers use frequent flier miles or credit card points to pay for their trips. However, many are unaware that travel insurance does not cover the value of these points and miles.
Buying Tip: While you cannot insure the value of your points and miles, you can insure the taxes and fees associated with them. Additionally, some providers offer coverage to re-bank or redeposit the air miles if you need to cancel your trip, depending on the policy.
Expert Insight
“Many travelers overspend on travel insurance, thinking that a higher price equates to better coverage,” said Jenna Hummer, a spokesperson for Squaremouth. “By understanding what not to insure, travelers can save money while still protecting themselves against unforeseen events.”
About Squaremouth
Squaremouth.com has insured over 3 million travelers. The site offers an intuitive quoting and comparison engine, an award-winning support team, and verified customer reviews to help travelers find the best travel insurance policy for their needs.
Source: Travel Insurance Mistakes: 2 Items You Should Never Include in Your Quote
