There are different sources for travel insurance, which can be categorized by their range of coverage and implications. Each source has it own acceptability to its target audience. Here is a list of different sources

Wholesale insurance

Current trends in spending pattern leads individuals to make effective decision which mean low price and a high return. People think before spending on travel insurance they calculate what they are actually paying for coverage along with administrative cost. There are also other costs involved in your insurance payment e.g. some cost goes to agent as commission, profit of the company and cost to reach clients. People are interested in going for a policy for which they have to pay few for other cost and maximum for coverage, which in return can be claimed in case of any accident. For example, if you are going for travel policy you are paying 10-30% for commission, 10% for promotion, 40% for administration, and 10% for profit and about 10-30% for actual coverage cost. And now if your go for a wholesale insurance you are paying minimum administrative cost about 10% and more for actual coverage that may vary from 50-70%. Therefore, you will get more coverage as a result in same amount. A wholesale insurance is included in your travel plan and you may get a printed page as proof of your insurance in advance. Therefore, if you are planning for travel insurance it is cost effective to get it from your travel agent as you can get maximum coverage.

Retail insurance

“Retail insurance” is insurance other than your traveling plan, in fact, it is when you are not getting it from your traveling agent. In this case, you have to fill the separate form and send it to the provider along with the payment. In this case, you have to pay more for the administrative cost that will affect your coverage and now you are paying the same amount but with low coverage. Note: keep in mind not all institutions are specialized in every thing may be your agent does not have a proper traveling policy in that case, it is better to have“retail insurance”.

Supplier's self-insurance

All those policies that are coming from travel insurance sponsor falls in this category, “supplier's self-insurance”. Those providers who are interested in securing their customer's cancellation cost usually offer this sort of policy. This may be a very limited policy as it caters to minimum coverage and have limited scope as well. In present situation this sort if insurance is sold by rent a car people who actually try to offer insurance at a 10 times higher rate than a commercially available policy.

Single trip or annual

Annul travel insurance policy is for those people who have high frequency of trips through out the year. It aids you to pay a single amount at start and get yourself register for every trip during specific year.

Primary or Secondary Cover

If you are seeking for post use payment, you can go for secondary cover, “paying after claiming the amount”. Nevertheless, it is better to go for a primary cover as you can have a predetermined claim level and a policy paper.