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Last Updated on June 9, 2022 by Mani Karthik
According to a new report, 2017 State of Travel Insurance, by Berkshire Hathaway Travel Protection (BHTP), travel insurance sales to Americans was expected to rise 4.9% in 2017. The report also revealed that 41% of BHTP travellers were expected to plan more international leisure trips in 2017. The findings were based on surveys and a predictive global-travel model, which included that in 2017, 36% of consumers expected to buy more travel insurance. This has reassured 61% of travel agents, who predicted that 2017 would be a better year for travel insurance, as compared to 2016.
By now, most of us have realized that buying travel insurance is not an expense but a necessity. However, there is one question, for which most buyers look for a suitable answer. The question is, “When should you buy travel insurance to get the most value out of it?” Interestingly, the answer is – as soon as you make a trip deposit.
Reasons to Buy Travel Insurance Soon
Travel insurance is insurance that is intended to cover medical expenses, trip cancellation, lost luggage, flight accident and other losses incurred while travelling, either internationally or domestically. Regardless of the coverage you opt for, it is ideal to purchase your travel plan earlier rather than later. This is because such policies protect you against unexpected events, which not only are unpredictable, but can be costly and ruin your entire trip.
If you buy travel insurance early, you can also add the additional costs to it, such as for plane tickets, tours, and more, which you would be purchasing later. However, for this purpose, you need to estimate the exact cost of the trip. This will help you buy the right insurance plan, with coverage based on your needs, avoiding the risk of being under-insured.
The best part about travel insurance is that even if you estimate high, and end up with lower trip costs, you are allowed to make changes to the coverage. Moreover, you will also obtain a partial refund of the premium paid.
What is Trip Deposit Date?
Although you can buy travel insurance right up until the day before you leave for your trip, you should buy a policy as soon as you make a trip deposit, as mentioned earlier. Moreover, when you are getting various insurance quotes, entering the correct trip deposit date is important. But how is this date determined?
You should know that the date on which you, the traveller, makes the first payment toward any aspect of the trip, including flight, lodging, cruise or tour, is known as the trip deposit date. This payment could be either a deposit or done in full, regardless of whether you have arranged things or have to get it done through an agent.
The reason the initial trip deposit date becomes crucial is that there are travel insurance plans that require you to purchase your travel insurance within a specified number of days, which is 10-14 days in most cases, of making the initial trip deposit, if the coverage is to be in effect. However, maximizing your security would remain the topmost reason for buying travel insurance as soon as possible.
If you are waiting for a hurricane alert to buy travel insurance, trust me that would be of no use. This is because at that time you will not find coverage for hurricanes. God bless you then!