The coronavirus pandemic has definitely taught us the importance of having a travel insurance policy for each international trip. Apart from safeguarding your finances from bearing medical emergency cost in a foreign land, an international travel insurance will also provides coverage against flight delays, checked-in baggage delay, luggage loss and many other journey related problems. While travel insurancefor several Asian and African countries is affordable, many people often wonder why premiums for travel insurance of US and Canada are costlier.
Let us know the reasons of paying more for travel insurance to US and Canada
• High Cost of Living
One of the top reasons behind expensive insurance plans is America's high cost of living. But not just the US, Canada is a well-developed nation with a high standard of living. From meals to daily utilities, sustaining your stay here is an expensive task. Travel insurance companies in India are aware of this and need to provide appropriate coverage to protect you at all costs. In case of an emergency, expenses will reflect the local costs, such as medical costs or legal expenses in case you're liable to a third party while on your trip. However, since the risk is more significant, they are bound to charge you more.
• Expensive Healthcare
Like most developed countries, Canada and the US have very different healthcare systems. The healthcare bills in these countries are higher due to administrative differences, billing requirements and rising drug costs. Medical debt is among the top reasons for bankruptcy in the US. What may cost you a few hundred dollars in other nations will cost you four to six times more in these countries. These countries even have a higher ambulance charge which may be offered at significantly lower prices in other prosperous nations. To battle these high costs, your travel insurance for the US or Canada will be appropriately higher too.
• Lack of National Healthcare System
In an international travel insurance policy, medical expenses for sudden illness, accidents, evacuation or repatriation are among the essential components. Unlike many other nations, these nations often lack a national healthcare system. As a result, the overall cost of healthcare is very high, from very high consultation fees by doctors to daily hospital expenses. Diagnostic tests and surgical procedures are expensive in US and Canada, even compared to European countries. Therefore, buying a travel insurance plan from India to such places will cost a lot more. In addition, unlike many European countries where the government regulates drug prices, the US sees little regulation.
Tips to Cut Costs on Your Travel Insurance Plan
Whatever may be the reason for your trip, you can easily find a plan to suit your budget without compromising on the protection:
1. Opt for flexible plans.
2. Buy a plan that lets you customize through add-ons. You will save money by buying a basic coverage plan without compromising specific coverage.
3. Always compare different plans to find the best deals. You can easily buy travel insurance online at lower costs once you've realized which offers the best benefits at a lower cost.
4. Avoid buying your policy in a rush.
5. Especially if you feel there are little to no details required before buying a plan, don't simply buy it without reading the terms first.
Chances are that the coverage is limited, or it has high deductibles or sub-limits on essential components.
Conclusion
It is always wise to have an international travel insurancepolicy for your trip, as the coronavirus pandemic is still far from ever. Also, there are rising cases of monkeypox viruses. Moreover, the medical cost of treating a disease in a foreign land can create a huge hole in your pocket; hence fly with an international travel insurance policy. Although travel insurance for the US and Canada is higher, it is still advisable to have it while travelling to these countries as uncertainties during the trip can happen at any time, which will not only hamper your journey but also lead to financial losses.
Disclaimer: The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before concluding thesales.
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