Buying a travel insurance policy is pretty much similar to buying any insurance policy. Thus, for buying a travel insurance policy, you have to follow pretty-much the same criteria:
#1 Compare policies
There are a number of insurance aggregators in the market that have made the process of policy comparison extremely easy. At the click of a button you can check the various travel insurance policies offered by all the insurance providers and check their quotes as well.
#2 Medical cover
When you buy a travel insurance, the insurance provider gives you a medical cover. It is recommended that you choose a policy that has a higher medical cover. The reason for this is that countries like US, UK, Australia, etc have extremely high medical costs.
#3 Check the different features
Although most travel insurance plans are more-or-less similar to one another, they have some minute differences. When choosing a policy, ensure you pick the one that offers you higher coverage (vis-à-vis other policies) for these most-common travel situations:
- Loss of passport
- Loss of baggage
- Cancellation of flight
#4 Low claim-rejection ratio
Claim rejection is the percentage of claims rejected by an insurance company to the claims it settled in a financial year. A higher claim-rejection ratio, means the company rejects more claims than it settles and this is a negative from a policyholder point of view. Hence, ensure you opt for an insurance company which has a lower claim-rejection ratio.
#5 Insurance company’s reputation
Just like you wouldn’t go and buy gold jewellery from any random jeweller, you shouldn’t buy insurance from any random insurance provider, as well. You are parking your money with a company to ensure it will give you some amount back if you have some issue with your travel. It is important that you select a reputed and trusted company with a good track record in the industry.