Ways To Avoid Rising Travel Insurance Costs
Too bad the loonie has lost some of its strength, snowbirds.
What about the U.S.-Canadian dollar exchange rate plunging downwards? First off, increased expenses. Second, if you're about to get a travel medical insurance right before you set off for another trip, then I guess it's not unusual to think twice. Many Canadians are now having qualms about spending winter outside the country.
Travel insurance premiums have doubled over the last six months, surging to more than 20 per cent. People have called their providers to inquire about the premium and couldn't believe their ears. What seller of travel medical insurance would dare withhold the truth?
And here's the truth: an octogenarian with pre-existing conditions may have to pay between $5,000 and $10,000 just to be covered for half a year. Faced with the prospect of losing thousands of dollars, travellers are no longer thrilled to spend their winter down south. Others would rather proceed without travel insurance. But even if this is the case, you need to be level-headed.
Feeling unwell while wintering in the United States is a sheer waste of warm weather. Seeing a doctor is not an option since you chose not to buy travel insurance from the outset. The only choice left is to go to one of the hospitals there where you're likely to dish out a hundred thousand dollars – or more – for the treatment of a heart problem, simple or not.
It's foolhardy to leave Canada without travel insurance. The cost may dent your wallet but getting sick in a country that's supposed to keep you warm is even more hurtful. Besides, if there's a will, there's always a way... get a deductible! You do the same for your house and your car insurance policies, so why not for your travel insurance?
Did you know a $300 deductible could actually reduce your premiums by 10 per cent? The higher your deductible, the higher the cut-off. So if you want to reduce your premiums by 40 percent, go for a $10,000 deductible. Still want a bigger discount? Maybe 70 per cent savings? Get a $100,000 deductible. A middle ground for deductibles is $1,000. Note that deductibles will be charged in U.S. dollars.
Only few buyers of travel insurance are using a deductible. Although the numbers are slowly growing, more and more travellers are encouraged to get one so they can save up on travel insurance premiums. Many buyers have not really heard of it. Insurance companies offer a deductible option but rarely mention it on their websites. Remember to ask for a deductible option if the company you're dealing with isn't offering it outright.
What's great about travel insurance deductibles is that you can pay it only after receiving medical treatment during your trip. Stick with a $1,000 deductible for a $10,000 U.S. hospital bill. The actual bills you have to pay directly may not exceed $1,000 so always prepare an emergency travel money of this amount. Deductibles present a win-win solution for both travel insurance company and buyer. While your provider will still cover huge medical bills, they are not obliged to pay small claims like simple medical consultations and the like.
There are many ways to avoid travel insurance costs: 1) age matters more than the travel date so buy a plan ahead of a landmark birthday (age brackets are in multiples of five) and 2) always inform your provider about the state of your health. You may have to pay a million more if you end up buying a plan after hitting a landmark birthday. On one hand, what's more gruesome than an increased premium is having your claim denied just because you didn't let your insurer know about health changes.
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