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How to Lower Your Travel Insurance Premium

Many travelers look to travel insurance to protect the money they’ve invested in their vacation….

  • September 3, 2019

Many travelers look to travel insurance to protect the money they’ve invested in their vacation. Savvy travelers know the best way to find the least expensive policy is by shopping around to compare premiums and coverages, but are they insuring more than they need?

Travel insurance comparison site, Squaremouth, reveals a travel insurance hack that is guaranteed to lower your premium.

The Hack: Only insure the dollar amount that you’re at risk of losing if you were to cancel your trip.

There are three main factors that determine the cost of travel insurance: age of the travelers, length of trip, and trip cost.

While travelers can’t change their age and must insure the entire length of their trip, they do have the option to insure as much or as little of their prepaid and non-refundable trip costs. The lower the trip cost, the lower the premium.

Example Scenario: A European river cruise may cost $1,200 but the cancellation penalty may only be $400. Instead of insuring the entire cost of the $1,200, the traveler can simply insure the cancellation penalty of $400.

“It seems like a simple way to get a better deal but many travelers aren’t aware of this when purchasing their travel insurance,” says Squaremouth PR Director, Jenna Hummer. “We understand that for many people, knowing what to insure and which policy they should get can be daunting. That’s why we’re here to guide travelers and educate them on these little-known tips and tricks.”

The Common Travel Insurance Savings Misconceptions: Many travelers think they can remove specific benefits from a travel insurance policy in order to pay a lower premium, but travel insurance is sold as a comprehensive package of benefits.

Some policies will offer upgrades and additional coverages, however the base policy cannot have benefits taken away.

Many people are used to discounts and rewards programs, especially frequent travelers. Unfortunately, due to strict insurance regulations in the U.S., travel insurance policies cannot be discounted.

Offering any financial incentives or discounts for insurance is referred to as rebating, and is illegal.

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