The Frugal Free Gal

5 Clever Ways to Save On Travel Insurance

Travel insurance is important whether you are just planning to go on a weekend trip out to the countryside or go on a back-packing trip around the world. Essential as it is, there is still a need for people to find the best deal available in order to save on money. There are various travel insurance policies and they can cover travelers for different areas of the world, for various lengths of time and insure a whole lot of different things.

If you are about to go on a trip and are looking for ways to save on travel insurance, here are 5 clever ways to save on travel insurance:

1. Check if you are already covered. There are some banks that offer their clients free travel insurance depending on their account type. Check if the account you have with your bank makes you eligible for free travel insurance coverage courtesy of your bank. If you are, then you don’t have to buy insurance for your travel. You have to understand however that the travel accident insurance commonly offered by credit companies only cover you under specific circumstances. You have to be aware of such circumstances to know if this type of insurance is appropriate for you. Also, make sure that you declare any medical conditions and other important things lest the policy gets invalidated.

2. Look for specialist policies if you are going away for long periods. It is essential for you to look for a specialist policy if you’re going on a long trip i.e. a ‘gap year’ trip because a lot of annual insurance policies are limited to only 30 days. If you are the adventurous type and your trip involves hang gliding, skiing and other such activities, a specialist insurance policy is ideal.

There are some insurance companies that offer winter sports coverage however you may need to pay additional costs. If you’re into extreme sports or activities, check with the company if they have an extra premium that covers these activities if only for a short period of time. This could at times be cheaper than buying annual insurance policy from a specialist insurer.

3. Get only the coverage you need. It is not wise to pay for coverage you don’t actually need. An insurance agent would naturally coax you into buying an entire policy, telling you that you need all coverage included but if you look closely, there are covers that are really a waste of your money. For example, you don’t need baggage coverage if you are not taking away any valuables with you. It is even cheaper to just have your valuables insured with household insurance.

4. Decide whether to get a single trip policy or an annual travel policy. If you are planning to go on a trip more than once within a year, you will save more money by purchasing annual travel insurance instead of buying insurance for every trip you take.

5. Don’t buy travel insurance at the last minute. Some people hoping to find great bargains tend to wait till the last minute to buy travel insurance and often, they end up with no other options but to bundle in travel insurance. Bundled trip insurance is not always a good thing because they are often overpriced compared to other plans. If you really want to save on trip insurance, take the time to search out better deals and don’t wait until the last minute to purchase.

My Story:

I was on my way to church yesterday when I noticed that my 2004 F-150 truck (yes, I am a truck gal–I’m from Texas!) was a bit shaky. I started to think, “Not again, I just had a tune up after this same problem a few months back,” that ended up costing a pretty penny. The truck would shake when I accelerated up to about 40mph and would shake when I was sitting at the stoplight. I started to worry a little. On the way home from church, I noticed that the engine light was on. Uh-oh. I got even more worried. I had never seen that happen before. We are down to one vehicle since we gave our other car away in September. That car was in no shape to drive, and needed to go. We plan to purchase a new or used vehicle here soon within the next month (stay tuned to a HUGE event taking place in March that I cannot wait to tell you about!) But for now, the truck is all we have.

Yesterday was Sunday so I knew I would have to wait until today to take it in to the shop. I always take it to the Ford dealership because I trust them to do right and also knew that I had $33.00 in Owner Advantage rewards saved up to use on whatever it was that needed to be fixed. I knew that I would be paying out of pocket for something, but I didn’t know exactly what. I set my alarm this morning to get up and have myself and my daughter dressed so that I could sit in line before 7am when the maintenance shop opened. Once I got to the dealership I was told that it would be about an hour wait. My daughter and I found plenty to do to entertain ourselves. I bought a new iPhone for my birthday and we had fun playing with some of the iPhone apps. I am impressed with how many learning games are on there! Her favorite right now is the Peekaboo Barn app.

After an hour, the mechanic came in to tell me there was a problem with the battery and a certain coil needed to be replaced. He told me the estimate, which was a few hundred dollars, and I wasn’t surprised. I actually thought it would be more. The work needed to be done, especially to prevent any further damage to our vehicle. I didn’t get upset over the price. I didn’t get upset because 1.) it could have been worse 2.) it was an easy fix and I would continue to be able to drive my vehicle that day after repairs 3.) we had the money to pay for the cost in emergency savings.

My daughter and I waited another hour for the truck to be fixed and then we were on our way home. That was that. It’s a bummer that I had to shell out a few hundred dollars on vehicle repairs, but it would have been an even bigger “bummer” had we not had money in our emergency savings to pay for it. Our vehicle is getting older now and it will most likely require repairs in the future. But, at least I know we have some “wiggle” room for these unexpected events.

Starting Your Own Emergency Fund:

How much do you need in an emergency fund? Examine your situation (your income and your needs) to decide on how much you should save. David Bach, a popular money saving author, recommends saving three months of your living expenses. You want to make sure you build your emergency savings fund to cover just that–emergencies: vehicle repairs, health coverage, and anything else life throws at you! Once you decide on where you will keep your emergency savings, do not touch it! Leave it there for emergencies only! You will be thankful for that fund when you need it.

Do you have an emergency fund saved up? If not, do you plan to start one?

Strategies for Shredding Your Car Insurance Premium

How much do you spend on car insurance each year? If you are like most Americans, you probably spend over $1,500 a month. Wouldn’t you jump at the opportunity to cut those premiums by several hundred dollars or more? There are actually a number of ways that you can reduce your premiums considerably. It is even possibly to cut them in half.

Stake Out Discounts

Insurance companies always play the numbers game. When statistics show you to be less of a liability than most other drivers, your insurance company will probably lower your rates. Some of the discounts that insurers offer include:

• Good student discounts (awarded to high school students who have a B average or better in school)

• Low-mileage discount (let your car company know if you car pool or take steps to reduce the amount of time you spend driving)

• Go to a defensive driving class

Many discounts can save you 10% or more a year, but only if you take the time to apply for them.

Know What You Can Afford for a Deductible

How much are you currently paying on your deductible? If you can afford to pay more, consider doing so. Doubling your deductible can reduce your premium by 30%. Just make sure that you have enough money set aside to cover that deductible in case you have an accident.

Ask for Advice from Your Insurer before Buying a New Car

The coverage you have to pay for a particular vehicle will depend on a number of factors. Check with your insurer to see what your premiums will be with a new vehicle. You can also find statistics on how likely a particular model is to be involved in an accident.

Decide When to Be Loyal to Your Insurance Company

Some insurers give discounts to drivers who stay with them for a while. However, sometimes you are paying too much with a particular company. Look around and go where the best rates are. It is a good idea to look for a new policy before your current one is about to expire. Some insurers will give you a 10% discount if you look early.

Always Look for Opportunities to Reduce Your Premiums

Most people never think to look for ways to reduce their car insurance premiums. They don’t know that a little diligence could save themselves hundreds of dollars a year. You should do everything you can to reduce these payments as much as possible.

Bio: Kalen Smith writes for Car Insurance Quotes, a car insurance comparison site.