Mistakes people make when buying travel insurance

Travel doesn’t always work out the way you expect. In the age of Covid-19, we know that all too well.

As the pandemic continues to disrupt and cancel vacations, many people are taking steps to try and minimize the challenges of altered travel plans. The data suggests that the pandemic has caused more Americans to purchase or at least consider travel insurance.

But with so many novice travel insurance shoppers out there, missteps are bound to happen. We asked experts to share the common mistakes people make when buying travel insurance—as well as their tips for maximizing coverage and cutting costs.

“Travel insurance is designed to cover unforeseen and unexpected events,” says Megan Monriff, chief marketing officer of travel insurance comparison site Squeeze. “That’s why it’s important to buy a policy before an incident occurs that could affect your trip.”

For example, if you’re taking a Caribbean cruise in early September, you might be concerned about hurricanes, she says. “It’s important to buy the plan before the weather event – preferably before the storm is named,” Moncrief explained.

The sooner you buy your travel insurance, the more protection you have.

Jeff Rollender, director of claims at travel insurance startup Faye, says: “It’s a good idea to buy travel insurance right after your initial travel deposit – like when you book your flights or hotel stay. “In order to get the full benefits of your policy, you must purchase travel protection within 14 days of your initial travel deposit.”

“The biggest mistake is buying insurance you don’t need or buying too much,” says money and budgeting expert Andrea Worch. For example, she explains, many people don’t realize that auto insurance is usually included in your auto insurance policy or credit card.

Check your credit card information to see if travel insurance benefits are available. If you book your trip with that card, you’ll be eligible for those benefits and won’t need to purchase a separate travel insurance policy.

“It’s important to understand what coverage a credit card provides, which may include delayed baggage, lost/damaged baggage, trip delay, cancellation or interruption, medical or discharge, travel accident and/or rental card insurance,” Woroch said.

If you travel often but have a credit card that doesn’t offer travel insurance, consider a new card that can help you lower your insurance costs. Woroch suggests comparing travel credit cards on sites like CardRates.com.

She recommends the Chase Sapphire Reserve Card, which includes trip cancellation and trip interruption insurance up to $10,000 per person and $20,000 per trip (in addition to trip delay insurance, baggage delay insurance, lost baggage insurance, rental car insurance and travel accident insurance). . Worock said the Southwest Rapid Rewards Plus credit card offers similar benefits.

You may have travel insurance with different memberships without realizing it, she said. “For example, AAA’s Premier membership plan offers robust travel coverage, including up to $1,500 in trip interruption or delay and up to $500 in baggage coverage.”

Not every travel insurance policy is suitable for every situation.

“When purchasing travel insurance, it’s important that travelers have a good understanding of the specific risks they have for their trip and the type of coverage they need,” says Moncrief. “Especially post-pandemic, we’re seeing new travel insurance consumers who aren’t familiar with the product.”

Of course, purchasing travel insurance requires some thought and research. Before you pay premium prices, think about what you do and don’t want covered, and if you’re still unsure, consider calling a professional.

“Another big mistake is not knowing what’s covered in the travel insurance you buy, because most people don’t read the fine print,” says Woroch. “So do your homework and check the details – otherwise you might be thinking you’re getting something you’re not.”

Remember that travel insurance is just like any other type of insurance, so it doesn’t cover anything and everything.

“When buying travel insurance, read your plan document,” says Angela Borden, product marketing strategist for Seven Corners Travel Insurance. “You’ll have a better understanding of your benefits, which will take some of the frustration out of filing a claim and realizing your condition isn’t covered,” she said. And “you know what steps to take, such as filing a claim, within a certain period of time.”

The correlation between price and value exists in the insurance world, but that doesn’t mean everyone should pay top dollar for travel insurance.

“After finding policies that provide adequate coverage, travelers shouldn’t shy away from the more expensive option,” Moncrief said. Premiums are based on travel factors such as journey length, number of travelers and age – not an indication of how reputable the provider is or how their claims process is handled.

“In general, if a traveler is looking to protect the cost of their trip with a cancellation policy, they should expect to save 4-10% of the cost,” she continued. “Most travel insurance policies are comprehensive and include a number of benefits in addition to trip cancellation cover. Travelers with no non-refundable expenses, or who are not worried about covering their expenses, can find a more affordable plan with valuable benefits such as emergency medical and evacuation, delay and baggage.

“The most common mistake we see today has less to do with buying a plan, and more to do with how they use their plan, especially during the claims process,” Moncrief said. “Travel insurance is designed to make a traveler whole and cover unexpected expenses they may encounter during the trip.”

For example, travelers who experience problems or inconveniences while traveling can be offered vouchers or credits from vendors such as airlines. But this can complicate matters.

“To be eligible for cashback from their policy, [the traveler] They must not have received any payment, credit or voucher from their travel provider,” Moncrief said, emphasizing the importance of understanding one’s coverage and what is required in the claims process.

“Most travel insurance policies come with a ‘money-back guarantee’ period, during which a traveler can cancel their policy for a full refund if they review the terms and are unhappy with the plan,” she says. All policies come with 24-hour emergency assistance while traveling. If you want to use their policy, we recommend that you contact this help desk right away, as they can walk you through your eligible benefits and often bypass the claims process.

“Many international travelers don’t realize that basic health insurance coverage is not available abroad,” says Moncrief.

For this reason, it’s worth considering a comprehensive plan that includes travel medical insurance in addition to coverage for things like lost luggage and trip cancellation or disruption.

“Most Americans, when they think about travel insurance, think and [are] We are concerned about protecting their trip, and the biggest financial risk they face is an unexpected injury, illness and/or medical evacuation during their trip,” said Omar Keywan, Founder and Chief Growth Officer of Goose Insurance. The biggest mistake consumers make is not purchasing travel therapy, and/or purchasing travel therapy that doesn’t fit their needs.

He noted that most policies limit pre-existing medical conditions and may have specific exclusions. So if you have a pre-existing condition, double check the terms of the policy before making a purchase. The same is true if you plan to participate in certain sports or activities.

“Some policies do not cover participation in sports such as scuba diving, spelunking, bungee jumping or anything else. [of] Team sports, so consumers planning to participate in sports activities should review the policy terms before purchasing,” Kaywan said. We’ve seen one too many mistakes in buying a ski touring policy without coverage.

Pay attention to the exclusions for certain destinations and the rules on the ground.

“If you’re traveling internationally, please review the requirements of the country you’re visiting to ensure your travel medical policy is adequate,” Keiwan cautions. “Covid is still there [in] Among us, many countries require coverage for medical and/or quarantine expenses.

“When you buy from a travel insurance company, you’ll be working with licensed insurance agents who can answer all of your questions and help you choose the best coverage for you,” Borden said.

Good insurance providers can help you after purchasing a policy and when a claim is needed. Look for companies that have good customer service that allows you to interact with people, not just bots.

“Avoid mistakes by simply calling your preferred travel insurance provider pre-trip and asking for more information regarding your inquiry,” says Rollander. “If you can’t reach them or get a clear answer to your questions, it’s a red flag that you should check with other providers to cover your trip.”

They suggest that calling can help you learn about inconvenient travel situations that may qualify for reimbursement — such as accidental vacation rental damage (broken lights, spills on carpets, stove fires), missed activity tickets, flight delays and cancellations (and related expenses like meals or hotels). Or even delayed luggage.