How to Choose the Right Travel Insurance Deductible?

Travel insurance is an essential tool for any traveller, offering financial protection against unforeseen circumstances like trip cancellations, medical emergencies, and lost luggage. However, the decision to buy a travel insurance policy comes with another crucial decision — selecting the deductible. The deductible is the amount of money a traveller must pay before their insurance coverage kicks in. Choosing the right deductible can be challenging. In this article, we will learn why it is essential to consider several factors before making a decision about the deductible when you buy travel insurance online.

Factors to consider when choosing a deductible

As described, the deductible is the amount that you need to pay out of pocket before your insurer can cover the remaining amount for which a claim has been filed. For example, if your deductible limit is Rs.2000 and you have filed a claim for the amount of Rs.10,000; you are required to pay Rs.2000. The remaining Rs.8000 will be covered by your insurer. With that in mind, here are some factors which you need to consider before opting for a deductible:

1. Budget

The first factor to consider when choosing a deductible is your budget. The higher the deductible, the lower the premium you pay. However, if you choose a high deductible, you may need to pay a significant amount out of pocket if something goes wrong while you're travelling. Therefore, it is essential to assess your budget and choose a deductible that you can comfortably afford. *

2. The length and cost of your trip

The length and cost of your trip are also critical factors to consider when setting the deductible amount. If you're taking a short trip, you may be comfortable with a higher deductible as the chances of an emergency occurring are low. However, if you're taking an extended trip or one that involves expensive activities like skiing or scuba diving, you may want to opt for a lower deductible for your international travel insurance to protect yourself against any significant financial losses. *

3. Your medical history

If you have a pre-existing medical condition, it is essential you keep that in mind when setting the policy deductible. If you have a history of health problems, you may want to choose a lower deductible to ensure that you are covered in case of a medical emergency. *

4. Your risk tolerance

Your risk tolerance is another crucial factor to consider when selecting a deductible. If you're risk-averse, you may want to opt for a lower deductible to provide maximum protection in case of an emergency. If you're more comfortable taking risks, you may choose a higher deductible for your insurance for travel abroad to save on premiums. *

Things to look for in travel insurance

The deductible is not the only factor to consider when you are contemplating purchasing international travel insurance. Here are some factors you should consider when looking to purchase a suitable policy for your next trip:

1. Coverage offered

The one factor which really impacts your decision when selecting a policy is the coverage amount offered in the policy. It is difficult to predict how and when an emergency might take place during your trip abroad. This also means it is difficult to predict the cost of treatment or emergency accommodations that you may require. Therefore, opt for a policy that offers sufficient coverage to take care of any sudden emergencies. *

2. Activities covered

Often, many travellers go to specific destinations to participate in adventure sports. Skiing, scuba diving, or sky diving are some of the most common and popular adventure sports that people indulge in. If you are planning the same, make sure you check the list of adventure sports that are covered by the policy. If you happen to injure yourself, the policy will cover the cost of treatment and any additional costs which may be incurred. *

3. Compare insurers

It is the rule of thumb to always compare different insurers based on their products, pricing, services, and claim settlement ratios. These parameters give you a broad idea about an insurer’s standing in the market and how it can benefit you in the long run. There are different websites where you can easily compare insurers and make the correct selection. An insurance premium calculator is a smart way to compare insurance companies not just based on their premiums, but also on the features that they offer.

Conclusion

Choosing the right deductible for your flight insurance policy is an essential decision that can impact your financial security while travelling. By assessing your budget, evaluating your travel plans, considering your medical history, and assessing your risk tolerance, you can make an informed decision and choose the right deductible for your needs. Remember, the right deductible is one that provides adequate financial protection without putting undue strain on your finances.   * Standard T&C apply Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.