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What is a Deductible and How Does It Affect Travel Insurance Cost?

What is a Deductible and How Does It Affect Travel Insurance Cost?

When it comes to travel insurance, the deductible is the amount that you are responsible to pay before the insurance benefits take effect and before the insurance company will pay for the treatments or services – just like a standard health insurance policy.

Choosing the Right Travel Insurance Deductible

While this doesn’t necessarily mean you have to pay your deductible in cash or upfront, you will need to settle it accordingly and then your insurance policy will pay any amount above your deductible, if covered. This is why it is important to pay attention to what deductible you choose when purchasing a travel medical insurance plan. Generally, a lower deductible plan may have a higher premium, and vice versa – meaning you’ll pay a higher premium but your out of pocket costs in the event of injury or illness will be lower.

Typically for travel insurance, all things required under one incident are counted towards your deductible.

Understanding Travel Insurance Plan Deductibles

If you choose a zero ($0) deductible, that means you are not required to pay any deductible and your benefits start immediately. If a plan pays 80% for the first $5,000, and 100% after that, this means that the insurance pays 80% for your first bills of up to $5,000.  

However, generally, the lower the deductible the higher the premium. So while you may be tempted to opt for a policy with a low deductible be prepared for a higher monthly payment. To learn more about deductibles and how they impact the cost of travel insurance, check out the video below. 

Visit our Knowledge Center for information on travel insurance policies or get a quote for your next trip today!


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Plan features listed here are high level, provided for your convenience and information purpose only. Please review the Evidence of Coverage and Plan Contract (Policy) for a detailed description of Coverage Benefits, Limitations and Exclusions. Must read the Policy Brochure and Plan Details for complete and accurate details. Only the Terms and Conditions of Coverage Benefits listed in the policy are binding.