Presented by 
If you’re planning to travel for several months at a time, saving money any way you can is essential. One of the easiest ways to save is to find the best travel insurance for your trip. We know that travel insurance can get really expensive when you’re travelling for longer periods, but there are ways to get affordable rates and save money.
Here is how you can save money on your travel insurance policy while still receiving coverage in case of a medical emergency abroad.
Can I still be insured if I go on a trip for several months?
Absolutely!
Yes, you can be insured if you are going away for several months! In fact, it’s totally recommended that you take out travel insurance before you leave.
Basic travel insurance covers the cost of medical care if you experience bad luck and need to visit a clinic or hospital abroad. When buying travel insurance, you need to consider a few things, but the most important thing is to make sure you get the right coverage for your needs.
If you’re leaving for LESS THAN 6 months, there is no reason to stress or break the bank. You’ll need what is called “standard (supplementary) travel insurance” that covers you for the duration of your trip.
If you’re leaving for MORE THAN 6 months, you must notify the RAMQ and may be granted special permission under the 7-year provision. Getting expat travel insurance is a good backup plan in case you lose your RAMQ benefits. Your policy will be customized for expats who are no longer covered by their provincial health insurance. Your best bet is to speak to a soNomad agent to find out more.
Money-saving tip: add a deductible to your travel insurance
Having a deductible on your auto or home insurance is probably nothing new to you, but did you know that you can also have a deductible on your travel insurance? Yup! It’s true.
This little tip is the best-kept secret within the nomad community. You can add deductibles to your travel insurance plan and save a lot of money on your next trip!
DON’T BE SHY TO ASK YOUR TRAVEL INSURANCE AGENT ABOUT IT
Truth be told, when you contact a company that offers travel insurance, it’s rare that an agent will tell you that a deductible will lower your rate.
Luckily, this method has been proven to cut costs for long-term travellers, as explained to us by an expert from soNomad. The deductible splits the risk between the insurer and the insured.
Plus, you’ll have more money left over to do other, more exciting things during your trip instead of paying for travel insurance! That’s what we’re talking about!
How do I get a travel insurance deductible?
Start by contacting a travel insurance agent and tell them you’re going away for a few months and would like to get some quotes with different amounts of deductibles.
The higher your deductible, the more you’ll save on your travel insurance policy.
In other words, a deductible is the amount of money you pay out of your pocket before your insurance company starts paying.
Adding a deductible to your policy may be a good idea if you often pay high premiums, especially when travelling abroad for long periods.
A scenario to make sense of it all
Say you’re going to Southeast Asia for seven months, and your travel insurance agent gives you a basic price without a deductible. You can learn about the various deductible amounts ( $200 USD, $500 USD, $1,000 USD, $1,500 USD, $2,500 USD, etc.) from your travel insurance agent if you simply ask.
If you choose a $500 USD deductible, your 7-month amount will cost you less than if you didn’t add a deductible. It’s kind of like getting a percentage off your travel insurance.
It also means that if you have a medical problem, you’ll be responsible to pay the first $500 USD of the bill from your pocket. This is why you’ll want to make sure you have the money in the bank, just in case.
Imagine you reach your destination and something unexpected happens. As you trek through northern Thailand, you sprain your ankle. You’ve got no choice but to contact your travel insurance company and let them know. They will refer you to a proper clinic in Chiang Mai. Specialists will take good care of you and give you X-rays. Thankfully, it turns out to be nothing serious. Your bill ends up being the equivalent of 450$ USD. Since you opted for a deductible of $500 USD, you will have to pay this bill in full without being able to claim it from your travel insurance.
However, if you broke your leg and needed an operation, it could cost thousands of dollars. You would only be responsible for paying the equivalent of your deductible, i.e. $500 USD. Your travel insurance would reimburse the difference and provide coverage for the thousands of dollars of medical costs.
We can’t say it enough: “Get insurance when you travel abroad, so you don’t end up owing thousands!”
A friendly reminder…
You need to be financially able (and comfortable) to pay the deductible. It’s essential to keep this in mind. A $2,500 USD deductible may save you money on your travel insurance, but if you have a very limited budget, you may be in trouble if something arises. If you have an emergency and your bank account is almost empty, paying the first $2,500 USD of your medical bills may leave you in a bind. It’s best always to make financial decisions that you can manage.
You should also check whether your deductible is applied per claim or for the coverage period. This part makes a big difference!
If your deductible applies per claim and you visit a doctor three times during your trip, you are responsible for paying the deductible three times. A $500 USD deductible means that you will be responsible for the first $500 of any claims made during your 7-month trip.
If your deductible is for the coverage period and you see a doctor three times, you’ll only have to pay the deductible the first time you make a claim. The deductible won’t apply the next time you submit a claim.
Travel insurance with deductibles is perfect for:
- Digital nomads (who work from their computer from anywhere in the world),
- long-term travellers (travelling for several months),
- healthy travellers,
- backpackers on a budget,
- travellers on Working Holiday Visas,
- travellers who are comfortable with paying the excess in case of emergency.
If you have no pre-existing medical conditions and plan to travel for several months, a travel insurance plan with a deductible is a great choice. You’ll pay less for your premium and have peace of mind knowing you’re covered in case something unfortunate happens.
You should also keep in mind that medical costs abroad can escalate quite quickly, so medical coverage of at least $2 million ensures you’re adequately covered. Some insurance companies offer $50,000 in coverage, which is not enough in our opinion.
Don’t hesitate to contact a soNomad agent if you have any questions or want real quotes on this type of travel insurance.
Discuss travel insurance options with soNomad
If you have questions, let us know! We’ll refer you to the right person!
Nomad Junkies’ founders are proud to be ambassadors for soNomad and on a mission to reduce travel insurance costs for all!
