If you are shopping for travel insurance for your upcoming trip, you might be a bit overwhelmed by all the different options with various benefits and prices. How should you go about finding the best deal that suits your travel needs? Here, we discuss the four major factors you should think about before choosing the best travel insurance for your travel plans.
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Table of Contents
Region of Destinations
While some insurance shopping platforms may ask you which country you will be travelling to, most travel insurance companies only price their plans based on the region of your destination. In Singapore, regions are typically divided into ASEAN, Asia and global.
The first thing to know when choosing a travel insurance is that wider regional coverage is more expensive. For instance, a travel insurance that covers your trip in Cambodia (ASEAN) should be cheaper than a plan that covers Korea (Asia) or London (global). Therefore, if you know you will be travelling only in a certain region, you can save some money by choosing the narrowest regional coverage possible.
On the other hand, you may want to select a wider coverage if you know you will be travelling in various countries. For instance, you might do a trip that starts in Vietnam, continues to Hong Kong and ends in Korea. Such a trip would require travel insurance with Asian coverage, not just ASEAN. Also, if you will be traveling outside of Asia, you would have to purchase a plan with a global coverage, which is typically 50-60% more expensive than ASEAN or Asian coverage.
Related: Travel Diaries: 5 Safest Travel Destinations in the World
Duration of Your Trip
Cost of your travel insurance will also depend on how long your trip is. Typically, we have found that a 2-week long trip will cost about 50% more than a 1-week trip, regardless of your destination. This cost will increase as your trip becomes longer up to a point when the price reaches the premium of an annual plan. On average, you can expect to spend about S$46 to S$83 for 1-week long trips, or S$73 to S$137 for 2-week long trips.
Short-Term vs Annual Travel Insurance Plans
Annual plans will cover your trips within a specified region for 365 days, and can range from S$330 – S$924 on average (depending on the seasonal discounts offered by insurers). This means that you might want to consider going with an annual plan if you know you will be travelling at least four to six times in the next 12 months. This is especially the case if your trip destinations tend to be broad-ranged in Asia or globally.
Because travel insurance benefits are the same for different durations, you wouldn’t need to worry about that when choosing between an annual plan or short-term plan as long as you are happy with the set of the benefits to begin with.
Related: Is Annual Travel Insurance right for you?
Coverage and Benefits
Last but not least, you should find out what kind of benefits you are entitled to, and if those benefits are on par with the industry average.
Typically, you are entitled to some payment when you 1) get in an accident or need medical help, or 2) when you experience some travel inconvenience like cancelled flights or lost luggage. You can also get covered for injuries in leisure activities like skiing or scuba diving.
Insurance companies usually offer an “economy” or “basic” package and a premium package. Premium packages come with higher compensations, but also cost about 40-60% more than their cheaper counterparts. Below is a summary of average levels of benefits for each major category, so you can compare your choice to the industry level while shopping for the best travel insurance in Singapore.
| Benefit | Basic Plan | Mid-Tier Plan | Top-Tier Plan |
|---|---|---|---|
| Personal Accident & Death | $125,000 | $216,667 | $416,667 |
| Overseas Medical | $225,000 | $750,000 | $2,500,000 |
| Domestic Medical | $9,333 | $23,750 | $40,833 |
| Emergency Medical Evacuation & Repatriation | $812,500 | $1,375,000 | $12,666,666 |
| Trip Cancellation or Curtailment | $5,417 | $9,167 | $14,167 |
| Trip Delays | $483 | $767 | $1,233 |
| Baggage Loss/Damage | $2,250 | $3,833 | $5,917 |
| Baggage Delay | $350 | $683 | $1,133 |
| *Accurate as of Apr 2024 | |||
If you are ready to purchase travel insurance and be protected for your next trip, check out our round up of the best travel insurance plans to compare which plan best suits your needs.
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