Consumers who choose to wait until summer to buy their travel insurance could be spending up to 20 percent more than those who plan ahead, according to the latest data from UAE-based digital-first insurance service Insurancemarket.ae.
Purchasing travel insurance outside of peak months, from May to August, can lead to substantial saving on expenses because this is when annual insurance premiums usually see a 10 percent to 20 percent decrease in price. Therefore, in preparation for Easter break, Eid-al-Fitr in June, and the summer months fast approaching, InsuranceMarket.ae by AFIA Insurance Brokerage Services LLC, is urging those preparing to travel to get the best deals by buying their insurance now.
“With the holiday season approaching, now is the best time for people to start thinking about travel insurance. By making sure they buy the right policy that will cover them for any eventuality, they will have peace of mind when traveling on holiday – a time when they most want to switch-off, relax and be stress-free,” said Avinash Babur, Chief Executive Officer at Insurancemarket.ae.
Things to watch out for
With almost 4.5 million reported flight delays, cancellation or overbooking in 2018, research from Insurancemarket.ae showed that 45 percent of all travel-related claims made in 2018 were for issues such as loss or accidental damage of personal belongings. A further 25 percent of claims were for missed connections and delayed flights respectively, while 5 percent were for emergency medical reasons while traveling.
The Insurancemarket.ae data also reveals that families can save an additional 10 to 25 percent by purchasing family travel cover. However, there is a need for families to check their policy carefully.
"Some insurance providers offer special family plans that include children, however, while the premiums may be about 50 percent lower, the limits of the benefits are shared across all members and may not always suffice. For example, a family plan can have a $50,000 limit for emergency medical expenses, but this is shared across all members and is not a limit per member,” Avinash Babur said.
Additionally, Insurancemarket.ae data also reveals some interesting benefits for people traveling frequently. For travelers making more than 4 trips a year with a duration of 7 or more days, single trip insurance can end up costing more compared to buying a multi-trip travel insurance policy. Annual premium plans often also include the added benefit of default Worldwide coverage (including the U.S.), so you can travel with peace of mind wherever you go.
Experts also urge customers to check whether they require any specialist insurance add-ons, such as Winter Sports or Adventure Sports cover for more active holidays, as this is usually excluded from standard policies.
“Basic travel insurance plans cover “safe” sports like hiking and snorkeling, but if you plan to do more extreme sports or adventurous activities, such as skiing, mountaineering, bungee jumping or scuba diving, there is high probability that you will need to add specialist sports cover to your policy for any relevant injuries, as these are excluded otherwise,” Avinash Babur said.