While travel demand continues to boom, so does the cost of travel insurance. As frustrated passengers continue to cope with flight cancellations, missed connections, and lost luggage, they now must deal with the rising cost of insuring their trips.
Arrivia’s Chief Executive Officer, Mike Nelson, affirms that travel insurance rates will rise next year for two reasons. First, inflation and increased demand have pushed the cost of individual trip components such as airfare, hotel room rates, etc. higher, which means the value of what’s covered by a travel insurance policy is higher. Second, with the significant spike in claims over the past two years – first COVID-related cancellations, then the travel disruptions at the beginning of the summer – travel insurance providers will try to recoup through higher premium rates.
However, for the average traveler travel insurance will still be a very small percentage of the total trip cost and is well worth the investment. Not only is travel insurance a hedge against the unforeseen, but it also provides peace of mind that unlocks the enjoyment of a trip.
With travel insurance costs on the rise, travelers can save money by purchasing only what they need, buying it from a trusted provider, and electing insurance at the time of booking. Purchasing a comprehensive travel insurance policy that covers most of the things that can go wrong, from illness to travel delays to lost baggage is the best option. Most travelers don’t need a cancel-for-any-reason policy, which is very expensive and typically only covers a portion of prepaid expenses.
Travelers should use the same tactics they employ to find value when planning or booking travel when buying travel insurance. Seek out travel insurance options that are the best fit for the trip you’re taking. If you belong to a travel loyalty program and typically find good deals on cruises or airfare when booking through their platform, you’re likely to find good deals on travel insurance too.
At arrivia, we source travel insurance products for our client’s travel rewards platforms the same way we source other travel inventory, based on longstanding relationships with our network of providers. That allows our clients to pass along the best value to their customers and members.
Lastly, purchase travel insurance at the time of booking, preferably within the booking path itself. Buying a policy post-booking usually comes with restrictions and can be significantly more expensive.
If you can’t find a perfect match online, ask your travel agent or travel rewards program representative if they are able offer an insurance policy that is most appropriate for your specific trip. For example, our travel agents at iCruise.com, an arrivia company, offer policies that are specifically tailored to the needs of a cruise traveler. If your travel agent can’t offer you travel insurance or if you prefer to buy direct, check out Faye, which offers a fully digital booking and claims experience.
You can read more about the rise of travel insurance rates and ways travelers can save money on travel insurance in 2023 in this Forbes article, Travel Insurance Rates Are Rising. Here Are 10 Ways to Save Money Now.