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5 Ways Travel Insurance Pays For Itself

woman near beautiful luxury swimming pool
Allianz - woman near beautiful luxury swimming pool

Everyone knows that insurance can save you money.

After all, that’s kind of the point of purchasing any insurance policy, from health insurance to car insurance. In the event that we experience an unexpected life event that meets the necessary conditions for us to submit a claim, insurance can prevent us from having to pay a much heftier price than the cost of premiums and deductibles.

In addition to giving you (priceless) peace of mind while you explore the world, travel insurance can save you actual money, too—sometimes it can even save you enough to cover the cost of your travel insurance plan itself.  

Just how much is that? Many factors go into determining the cost of a travel insurance plan, from your choice of company and plan to your trip length, age, origin and destination. TravelPenguin did the math and found that the average cost of the 50 plans they looked at across the spectrum was $148. In other words, travel insurance may cost more than your neighborhood cat sitter, but it’s substantially less than airfare, lodging, the meals and entertainment budget, and other higher costs you might budget for your trip.1 Better yet, the right travel insurance plan can actually protect your higher, non-refundable costs if something goes wrong on your trip.

If you’re skeptical, read on. If you’re ready to jump ahead, start looking for the Allianz Global Assistance travel insurance plan that fits your budget and itinerary.

1. Travel insurance allows you to book the lowest priced hotel room without worry.

Booking accommodations today can sometimes feel like you’re sitting at a blackjack table, betting against a dealer with an ace showing. That’s because online lodging aggregators—and especially hotels’ direct booking sites—often pose travelers a dilemma. They’ll ask you to consider paying a cheaper rate today that’s nonrefundable vs. paying more at the time of check-in for the peace of mind that you can cancel one or more days prior to check-in. But you don’t have to play that game. If you have a travel insurance plan from Allianz Global Assistance that comes with a trip cancellation benefit, and you cancel a trip for a covered reason, you can receive reimbursement for prepaid, nonrefundable expenses such as lodging up to your plan’s limit. With that in mind, you can consider snagging that cheaper room rate without sweating what will happen if you need to cancel.2 With prepaid room rates offering savings in the ballpark of 15% off the standard rate—though this varies by lodging brand and your choice of site—a three-night domestic trip based on an average room rate of $126 could save you $57!3, 4

2. Travel insurance helps you squeeze some extra time out of your itinerary.

Time is money. And this cliché may never be more true than when you’re traveling. Just think of the myriad ways time can save you money on the road or in the air. For example, having a buffer of time on your trip can be the difference between being able to take the scenic (and cheaper) bus ride the more costly Uber ride. And if you have time to find the currency exchange provider with the most favorable rates, you can literally find more money in your pocket. One way a travel insurance plan from Allianz Global Assistance can save you precious minutes (and even hours) is with Hotline Assistance. Simply connect with our expert team by phone 24/7 and we can help you find everything from a way to replace lost travel documents to a family-friendly restaurant near your hotel.5 Then there’s the Allianz TravelSmart mobile app, which allows you to instantaneously access your travel insurance plan on the go. When you only have seconds to make a call on trip cancellation or how to reconcile a trip delay, having crucial plan information at your fingertips can help you avoid making a costly mistake, keeping those funds available for a mini-golf game at the beach or a midnight cruise (and a sitter for the kids).6 

3. Travel insurance makes taking more trips worth it. 

If you know that you’re going to take more than two to three trips in a year, choosing an annual or multi-trip plan with Allianz Global Assistance (called AllTrips) makes a whole lot of sense. That’s because if you’re a frequent traveler, purchasing one affordable annual plan can offer significant cost savings over buying multiple single-trip plans piecemeal. And since you’re protected for a full year of travel, you also won’t have to spend time shopping for an individual plan whenever you’re ready for your next trip. Which means you’ll have more time for something you really enjoy: planning new adventures.7

4. Travel insurance can reward you for doing absolutely nothing. 

Imagine this scenario: you’re sitting by your gate when you learn that your flight has been delayed—for an undetermined amount of time. It looks like you might be here awhile, so you decide to grab a latte. More time passes, and as you put down the latte and peek at your phone, you notice a text alert: you’re eligible to receive a $100 payment for your covered delay, and you didn’t even need to submit a claim or receipt. No, it’s not magic—it’s your SmartBenefits, which help streamline payments for Allianz Global Assistance travel insurance plan benefits, including covered travel and baggage delays. And they can be paid in a number of ways, whether it’s via your debit card or into your bank account a few days later through direct deposit.8 Now that you’ve got a little extra spending money, your latte is suddenly looking a little lonely—so it might be time to check out the pastry case.  

5. Travel insurance can help you avoid travel rewards nickel-and-diming.

OK, for this last example of how travel insurance can help keep money in your pocket, we’re deviating a bit from our original scope. This time, you’ll need to have successfully submitted a claim, specifically using your travel insurance plan’s cancellation benefit. Here’s the scenario: you’re cashing in some hard-earned travel rewards points for an upcoming trip. But before you depart, you experienced a minor calamity that’s a covered reason for trip cancellation under your Allianz Global Assistance travel insurance plan. It’s a safe bet that to restock those travel rewards points on your virtual shelf, your credit card or other third party will charge you a re-depositing fee. But with certain travel insurance plans from Allianz Global Assistance, you can be reimbursed this fee up to the benefit amount. After all, the best way to counter an unexpected fee is with an excellent travel insurance benefit.9

Travel insurance may not have been a traditional line item in your travel budget—until now. Because now that you know how travel insurance may subsidize or even pay for itself—while also giving you the confidence you need to explore the parts of the world that are calling your name—you may be one of the growing number of jetsetters and road trippers who always pack a travel insurance plan.

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