Posts Tagged ‘travel insurance coverage’

Common Travel Insurance Mistakes - Restrictions and Denials

Thursday, February 4th, 2010

Travel insurance can be your best friend when traveling, but if you don’t know the ins and outs of travel insurance then you could be setting yourself up to lose a lot of money in the form of travel insurance restrictions and denials.

Here is a list of the most common travel insurance mistakes to avoid:

  • Not understanding travel insurance restrictions - Every travel insurance policy will have its own set of restrictions. It is therefore up to you to read and understand these restrictions to make sure the policy you choose is right for you and the trip on which you are embarking. Many times, individuals will take out a travel insurance policy, only to find out the policy didn’t cover something major until their claim is denied.

  • Paying more attention to the bottom line than the coverage -  Because there are a number of different levels of travel insurance that you may purchase, your first instinct may be to choose the least expensive. However, purchasing the least expensive policy can end up costing you much, much more if you must submit a claim for damages or monetary losses. In the end, it pays to look at coverage before you look at price.

  • Taking part in activities not covered - Activities deemed by the insurance company to be dangerous are typically not covered under a standard travel insurance policy; therefore, if you become injured when participating in one of these activities, it will likely not be covered. If you know that you might engage in any dangerous activity - from skydiving to parasailing to water skiing - you will probably want to take out additional travel insurance to cover this.

  • Engaging in illegal activities - Participation in any sort of illegal activity will certainly make your travel insurance policy null and void. In other words, damage to a vehicle and injury to yourself because you chose to drink and drive, for instance, will result in the loss of any coverage under your travel insurance policy.

  • Not going through the proper channels - Travel insurance policies typically have a set of rules that you must follow to submit a claim. If you fail to go through the proper channels you may be unable to collect money for your losses.

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Are you Underinsured for Travel Insurance?

Monday, December 7th, 2009

You are the responsible traveler: you pack days in advance; you make a clear list of things to do before embarking on your trip; you check and double-check your itinerary and flight arrangements; you always remember to bring an extra memory card for your camera; and of course you always buy comprehensive travel insurance.

Would you be surprised to find out that you may be underinsured? It’s important for everyone to consider that they may just be paying too much for their travel insurance and not getting the coverage that they need in return.

It’s true! Many individuals purchase travel insurance without really reading the fine print, only to find themselves in a precarious - and expensive - situation while traveling.

The fact of the matter is that not having adequate travel insurance can cost you time, money and even your health.

An underinsured traveler may find him or herself:

  • Paying out of pocket for emergency medical treatment - from emergency room treatment, to tests, blood work and hospital stays
  • Paying out of pocket to return home unexpectedly - if your travel plans change and you must return home early, you may have to pay out of pocket for your flight and other travel arrangements
  • Paying out of pocket for legal counsel overseas - if you find yourself in a situation where legal counsel is needed, such as a personal liability suit, you may need to secure legal counsel and pay for it out of your pocket
  • Paying for an emergency medical evacuation
  • Losing money from lost wages

It is because of this that you must read and re-read your travelers insurance policy carefully, particularly if you are traveling abroad. Being stuck in a foreign country without the money or insurance coverage to pay for medical expenses, legal expenses and travel expenses can be devastating, and can even inhibit an individual’s ability to return home.

Before you leave for your travel destination, take the time to read the fine print of your travel insurance policy and contact the insurance company if there is anything in the policy that you don’t understand. Remember that it is up to you to understand your policy and make sure that you are adequately insured. If you fail to make sure that you have secured the proper travel insurance you could end up in a difficult situation and without any money.

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Which Type of Travel Insurance Best Meets Your Needs?

Friday, September 25th, 2009

Depending on your traveling needs and demands, you can optimize your travel insurance coverage by choosing the policy that fits your lifestyle.  By evaluating the three main coverage options, per-trip, annual, and multi-trip, you’ll be able to enjoy travel insurance protection while cutting back on unnecessary costs.

Choosing the Best Travel Insurance

Per-Trip Coverage

If you typically only opt to take off for annual vacations, then choosing a per-trip travel insurance plan is ideal.  With per-trip coverage, you are able to choose a plan that is limited to your set vacation travel time, whether it’s for a weekend or two weeks.

Annual Coverage

Unlike per-trip packages, annual coverage is ideal for individuals who travel more regularly.  For example, individuals who opt for more than one vacation each year, and / or individuals who are required to travel for work-related reasons will find many benefits in annual coverage options.  Generally, an extensive annual coverage plan will protect travelers from incidents such as:

  • Lost baggage
  • Medical coverage (generally abroad or related only to the traveling)
  • Hotel cancellations / problems
  • Lost / stolen luggage
  • Additional costs / expenses

Although each annual insurance plan will vary, depending on the provider’s requirements and your individual package needs, most per-trip travel insurance plans cost around 5 to 10 percent of the cost of the overall vacation, while annual insurance plans general cost less than $300 to $500 dollars.  As a result, if you are planning on going on more than one vacation at the expected cost of around $2,000 per trip, then annual insurance should save you some serious cash.

Multi-Trip Coverage

Finally, if choosing to purchase multi-trip coverage, then travelers will generally be able to take advantage of insurance protection for up to 30 consecutive days while traveling.  Unlike per-trip insurance, multi-trip coverage allows travelers to enjoy insurance benefits as they move from one destination to another over the course of a year.  Essentially, travelers are able to set off on multiple trips each year, as long as each trip does not exceed 30 days.  Multi-trip insurance should generally cover travelers as they visit any location around the world, as this option allows individuals to conveniently hold on to the same coverage features without having to open a new plans each time a new vacation is organized.

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Studying Abroad? Find Out Why Students Need Extensive Travel Insurance Coverage

Thursday, September 10th, 2009

As many high school and college students opt to explore the world on various study abroad excursions, experts suggest that all student travelers take advantage of specific student-based travel insurance plans.

Why Students Need Travel Insurance Protection

While adults traveling the globe are generally protected from loss and / or harm by their pre-existing insurance polices (such as their health insurance, property insurance, and other policies), students generally lack extensive investments in these programs. As students typically lack the means and or need for comprehensive insurance policies, a choice to leave the country may mean that a student is at a greater risk of loss if any form of injury, personal loss, and / or property damage occurs. As such, experts recommend that all students opting for programs to study abroad invest in basic student-based travel insurance polices that include the following protection features:

  • General travel insurance (in case of cancellations, and flight changes)
  • Baggage
  • Medical
  • Travel Accident
  • Worldwide emergency assistance support / services

Additional Options for Student Travel Insurance

Depending on each student’s specific personal needs, worries, and travel plans, some students may benefit from opting for extensive coverage features. Specifically, many providers offer coverage for issues / dangers such as:

  • Pre-existing medical conditions / needed treatments abroad (some medical upgrade options even include evacuation protection to a hospital / provider of choice)
  • Baggage upgrade (this can be optimized to include possessions such as electronics, portable computers, laptops, cell phones, CD players / DVD players, and camera equipment)
  • Specific sports protection (covers students from damage / harm caused by participation in adventure-related sports, such as white water rafting, which would otherwise not be offered under a general student travel insurance plan)
  • Terrorist acts / terrorism
  • Vandalism
  • Delayed baggage (if your bags are delayed resulting in your need to purchase items in order to continue planned travels / comforts until bags are delivered, then a provider may offer features for additional delayed baggage protection)
  • Emergency evacuation
  • Emergency cash transfers

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