Many of you prepare and budget to keep big expenses in mind while traveling abroad. Costs such as food, airfare, and accommodation are some of the significant areas that require a majority of your funds. However, no matter how well you schedule your journey, traveling overseas is taking a dip into the unknown. You can easily run into unpredictable expenses that never considered in your budget. These hidden costs have the potential to disrupt your budget and wipe your wallet clean while you are on vacation.
The first thing to do before you plan to go abroad is to ensure that you are protected by a comprehensive travel insurance. For example, if you incur any medical costs due to an accident or sickness, or if you need to pay for new accommodation through no fault of your own, your travel insurance policy will take care of such expenses.
There is so much to take into account when preparing a budget for a vacation abroad, and at first, it can feel daunting.
Here are a few ways to stay prepared for unexpected expenses in an unknown land:
- Have an Emergency Fund
It is a smart idea to have an emergency fund on top of your money spent on travel, so you have peace of mind knowing that if you need it, you have some extra cash to fall back on. It is advisable to keep the additional money aside from your regular travel expenses in cash or keep in your bank account and take a debit or credit card with you. You can also let your bank know about your trip abroad to make it easier to access the money whenever needed.
- Buy Travel Insurance
Although travel insurance is not usually spoken of, it is certainly a good idea. Especially if you plan to travel for a long time, you should at least explore your options. If you want to travel for more than a week, it is advisable to buy a comprehensive travel insurance policy.
When you’re overseas, you never know what could happen, and you definitely don’t want to come home with a huge sum of money owed to a foreign country, all because you slipped while hiking on a rock. You are effectively protecting yourself against multiple travel risks such as missing or stolen baggage, cancellation cover (if you cannot travel due to unexpected medical reasons), and, most notably, unanticipated medical expenses abroad by taking out travel insurance.
- Book Travel and Hotels Early
Airfare is the largest expense during international travel and cause you to pay in lump sums. Book travel as early as possible, also six months earlier if necessary, to avoid facing high airfare prices. To get the best offers, make hotel reservations early as well. Try to book a hotel room with the option of paying at the hotel or paying at check-out, so in an emergency, that will give you the flexibility to make adjustments to the schedule. To get the best price, always compare hotel deals on different travel portals.
Travel Safe with Travel Insurance
Travel insurance may seem like an unnecessary expense at first but is the right protection you need while planning an trip abroad. As it is said- better to be safe than sorry, make sure to invest in the right travel insurance policy.
Reputable insurers like TATA AIG offer a range of travel insurance plans for you to select. They include International travel insurance, student travel insurance, domestic and senior citizen travel insurance. These policies provide a multitude of benefits like cover for passport/baggage loss, medical expenditure, flight cancellations, and more. You can learn everything about travel insurance Indonesia from India to help you plan better!