How much can I get a loan to pay for travel insurance in the UK?
According to the latest reports, “ the average cost of travel insurance cover in the UK is £12.60 for a single trip.” It is £21.58 for the annual cover. Buying a travel insurance cover is the best way to protect against the mishappening. It covers everything from accidental damage to luggage loss. Moreover, sudden accidents demand immediate healthcare requirements. A verified insurance cover provides medical assistance too.
Holidaygoers or avid travellers travelling without one stand the risk. They sabotage their and the family’s life at stake. If anything goes haywire, the expenses may jump to £2,00,000 in no time. Not having the desired travel insurance means you must pay it from your savings. Thus, experts suggest taking out a relevant travel insurance cover to protect your holiday.
Which aspects decide the total travel insurance costs?
The average cost of travel insurance covers bases multiple aspects. Every insurance provider may have a different set of criteria and attitudes to risk. Here are some aspects that define the amount you get as insurance:
- Age
Individuals under the age of 45 get higher insurance coverage than those above that. It means that the cost of travel insurance increases with age. Thus, explore the rates and compare to spot the best one.
b) Medical conditions
Insurers conduct a basic health test before deciding on the cover. Insurers view individuals with medical conditions as risky. Thus, either they deny or charge more to cover the disease. However, some providers help individuals with pre-medical conditions.
c) Extra benefits that it covers
Many travel insurance providers provide add-on benefits like- winter sports or cruise cover. It also provides a gadget cover that prevents your electronics from covering the loss. Thus, these add-on benefits make the policy expensive. Most individuals struggle with premium management.
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d) Activities you undertake
If planning to participate in high-risk activities like- mountaineering, or skydiving, the costs may rise. You may also need to cover the cost of the additional equipment. You may require it for the activity.
How much travel insurance do I need?
The amount you need depends on your personal itinerary. Thus, before comparing the policies, know the amount you need. Here are some aspects that may help you calculate that:
1) Medical costs
It depends on the country costs you are travelling to. For example, if travelling to America, you will need more medical coverage. Although, the coverage depends on health and pre-existing health conditions.
2) Baggage cover
Analyse how much you need to pack for your comfortable holiday. Additionally, check the costs of replacing the expenses. It may be due to the baggage getting lost or stolen. Pack only the essentials you need for the trip. If you must buy some medicines but waiting for the salary, don’t worry. Prepare a list of the important items.
Or you can simply repair the bag or update the passport. The latter requires time. Repair the bag immediately or shop for a new one by using a £2k loan hassle-free. It may assist you in preparing your travel bag for the best trip. If you want you can also buy a new one using the money.
3) Cancellation cover
Add the additional expenses that you would be paying for flights and accommodations. It also includes the excursions you take. Check whether the policy covers the cancellation. If you must cancel it for some reason.
4) Adventurous excursions
If you are on an adventurous holiday, ensure you cover the terms. In some situations, you may need to add additional cover. Additionally, check whether the policy covers additional equipment that you take with you.
What if you skip travel insurance premium coverage?
It is not necessary to pay the premiums. However, it may vary according to the insurance provider. Some may charge a late fee for not paying the premium timely. It gradually increases the costs of the insurance cover. Sometimes, the company may send a court notice if the amount exceeds the expectations. However, the insurer may repudiate the contract if the person cannot pay even after the fixed date.
How much can you loan up to pay the travel insurance premiums?
Travel insurance companies require customers to pay the premium every year. However, circumstances like business loss, unemployment or income drop may affect payments. Moreover, the inability to save money leads to skipping
payments and attracting penalties. Whatever the reason, you may still cover your premium cost. It prevents from discontinuing the insurance. It is a blessing for an avid traveller. However, the amount you get depends on a few factors:
1. Your credit score
Individuals with credit scores less than 520 struggle to get more. It reveals an unreliable credit profile. However, individuals with credit scores over 700 can fetch a better amount. Lenders consider credit score as the prime aspect of calculating affordability. Individuals with low debts, high incomes, and better financial management get better rates.
2. Employment type
Employment matters in identifying affordability. The higher the income, the more amount you may qualify for. Income may include part and full-time income. Individuals with part-time income may not qualify for a high amount. It reveals low budget flexibility or savings. Alternatively, individuals with regular income may get a better amount. It reveals the flexibility of paying the dues timely. Hence the lender may loan up a higher amount.
For example, if you earn £20000/month, you may get a £4000 loan from a direct lender, respectively. However, if you earn over £25000/month, you may get around £10000 or more as a loan. It also depends on the amount you need. Precisely, higher income gets better rates and amounts as a loan.
3. Authenticity of the details
Each loan provider requires you to provide details as you fill out the form. It may include, ID proof, employment proof and other details. They tally the details with the authentic proofs. Moreover, the application form details should have been spell-checked. It increases the chances of fetching an affordable loan.
Bottom line
Travel insurance coverage helps you cover the expenses related to trips monthly or annually. It prevents you from spending unnecessarily due to calamities. However, the amount you can claim depends on the circumstances and criteria. Make sure to pay the dues timely. If you cannot, the basic loan may help. The amount you get depends on your affordability. If you can pay it timely, you get one.
Ailsa Adam is the Editor-in-Chief and former content head at Hugeloanlender. She has been a valuable member of the content strategy team since 2017 due to her abundant experience in the finance sector. Passionate about helping individuals navigate the world of loans and personal finance, she has dedicated herself to acquiring extensive knowledge on various financial products. Before her role at Hugeloanlender,
Ailsa worked as a seasoned journalist and writer, specialising in creating informative blogs and articles on diverse loan types. She is known for her meticulous research and commitment to delivering accurate and engaging content. She holds a degree in MBA Finance and has a keen interest in creative writing and art.
