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An important question that we get frequently deals with travel insurance (also known as trip insurance). There are multiple companies out there that offer travel insurance, but which one is truly the best?
Money expert Clark Howard has a recommendation: InsureMyTrip.
“The reason I like InsureMyTrip is that it’s like an aggregation service or comparison site, and you can see all the different choices available,” he says.
This article was updated in January 2024 and I review it every 12 months. Detailed notes on all updates can be found here.
There are a variety of options when shopping for trip insurance. But Clark and the volunteers at Clark’s free Consumer Action Center recommend using InsureMyTrip. How does it work? Let’s try and buy travel insurance together.
Step 1: Visit InsureMyTrip’s website.
Step 2: Click the green “Get A Quote” button.
Note that at no point during the search do they ask for personal information.
Step 3: Add In Your Travel Details.
InsureMyTrip asks for the following details: destination, travel dates, citizenship and residence, and how many people are in your travel party along with their ages. You also have the option to add “trip details” which includes whether you are taking a flight, a cruise, or staying at a vacation rental.
Step 4: See Plans & Prices.
Now that your details are entered, you can check out the options available for your trip.
From here you will see a bunch of options. You can sort those options by several factors including the most popular plans, insurance provider, price and rating.
Not ready to buy yet? No problem! Enter your email address, and the results will be emailed to you with a link to pick up where you left off. Keep in mind that the closer you get to your trip, the more expensive your travel insurance policy will likely become.
During my shopping process, I noticed a box on the right side of the page that allowed me to begin a live chat with a representative should I have any questions along the way.
Due to the ongoing effects of the COVID-19 pandemic, the need for broad travel-related insurance remains high. Not every trip insurance policy covers you for pandemic-related reasons (many exclude them!) so it is important to read the fine print.
A Cancel for Any Reason (CFAR) policy is more expensive than standard policies, but it gives you the most flexibility. As the name implies, you can truly cancel for any reason — including a Covid outbreak or just changing your mind.
It’s important to know, though, that there are times when a CFAR policy isn’t necessary. For example, if your hotel or airline has a “cancel within 48 hours policy,” and you cancel within that time frame, you do not need an insurance policy and can save that extra money.
Also, CFAR policies do not refund 100% of the trip. You can expect to get back a sizeable chunk (60-80%) but not all of it.
To illustrate how InsureMyTrip works with a CFAR policy, I chose a random country to visit: Italy. From there, I was asked for my travel information. This included my travel dates, the number of travelers in my group and the cost of the trip. Pretty straightforward.
After I answered those questions, I was provided with matches from a variety of insurers, prices and coverage options. At the top of the search results section, there is a column called “Cancel For Any Reason.” Not too many insurers offered this policy on my particular trip.
After scrolling down I found one company offering a CFAR plan. When I clicked on “view coverage,” a disclaimer popped up stating that my plan cost jumped from $291.00 to $445.23 just because I checked the box for CFAR. The cost of my hypothetical trip was over $7,600, and the extra $154.23 would be worth it to me, seeing that if I met specific requirements, I could obtain 75% of my trip cost back should I need to cancel.
Besides the traditional trip or CFAR insurance, there are a variety of other options to add a layer of security when traveling both domestically and internationally.
Some policies offer additional benefits for lost baggage reimbursement and delays in connections or arrivals. When you travel by air, airlines enact what is called a “Contract of Carriage.” This outlines the airline’s rights and responsibilities and your rights and responsibilities as a passenger.
While an airline has the legal obligation to get you to your destination or offer you a refund, sometimes delays in travel can cost big bucks when you have connecting flights, cruises, or hotels waiting at the other end. Having trip insurance in your back pocket can help offset the loss that an airline will not reimburse.
It is important to note that the best place to obtain trip insurance is from a site such as InsureMyTrip. Clark says to “never, never, not ever” add it when booking on an airline, hotel or car rental website.
For the best possible pricing, you should buy trip insurance within two weeks of booking your trip — assuming of course this is not last minute. Booking within two weeks gives you plenty of time to shop for the best plan, and you’ll still be within the window of the cheapest rates. The longer you wait to purchase trip insurance, the more expensive it becomes.
Whether you travel near or far, trip insurance might be a viable option to lessen the cost should the unexpected happen. With services such as InsureMyTrip, it is possible to create an insurance plan based on your unique travel situation. No two scenarios are treated equally. Travel safely!
Have you purchased travel insurance using InsureMyTrip? Let us know about your experience in our Clark.com Community!
This post was last modified on January 12, 2024 7:14 am
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