“My insurance company denied the claim because it excluded wars and hostilities between nations,” says Meili, a university professor in Tennant Harbor, Maine.
In other words, she had the wrong travel insurance.
Beginner’s guide to travel insurance
Dan Richards, CEO of Global Rescue, a provider of medical, security and evacuation services, said: Various activities can be excluded by policy, he says, including mountaineering, skydiving and scuba diving, paragliding and backcountry skiing.
The pandemic and unstable geopolitical situation have increased interest in travel insurance. But the choices can be overwhelming. For example, Berkshire Hathaway Travel Protection has eight plans, including WaveCare cruise insurance and policies that cover expeditions and luxury travel.
Reality check: It can be difficult to tell if a plan is correct without a specific concern or crystal ball. Chris Carnicelli, CEO of Generali Global Assistance, said: So you won’t realize your policy is wrong until something happens that isn’t covered, like a military invasion.
Still, is it possible to know if you have the wrong travel insurance? Yes, here are some signs.
How to make a travel backup plan
If your travel insurance is not ‘cancelled for any reason’
Travelers often make the mistake of thinking that travel insurance covers everything. it’s not. “Cancellation for any reason” insurance is usually more expensive and allows you to cancel your vacation and get a partial refund. However, most policies only cover certain named events, such as travel interruptions or lost luggage.
If your credit card travel insurance is limited
CoverTrip founder Damian Tysdal said:
Credit cards can provide basic coverage for travel disruption, evacuation, lost luggage, etc., but coverage may be limited. Tysdal said some cards, such as Chase Sapphire Reserve, may offer more coverage, but most aren’t enough.
Helen Prochilo, a travel advisor in Long Beach, New York, recalls that one of her clients wanted to finance a $14,000 Danube River cruise with her credit card. She revealed that Prochilo asked travelers to read the fine print and that she would only cover $3,500 in losses if she had to cancel. Her client ended up purchasing an independent policy.
“Two weeks before we were due to leave, my husband developed pneumonia and we had to cancel,” she says. “Had she relied on credit insurance on her card, she would have lost more than $10,000 of hers.”
How to budget for your dream trip this year
If travel insurance was a real bargain
Laura Heidt, insurance desk manager at Brownell Travel, said:
Policies can be expensive. Traditional insurance covering specified perils, such as flight delays or hospitalization, costs 7-9% of the prepaid, non-refundable costs. A no-reason cancellation policy that allows you to cancel your trip and get a refund of 50-75% will get you back 10-12%.
Here are some insider tips: The more complicated your trip, the more insurance you will need. Her Beth Godlin, president of Aon Affinity Travel, said: training.
If you are only interested in policy caps
Travelers often stick to the insurance cap (the amount the insurance will pay for a covered event), but ignore what is not covered. Travelers may not pay attention to exclusions such as adventure her sports. Sometimes we don’t pay attention to the effective date. We had a reader previously book a cruise extension and filed a claim, but his policy had already expired.
Narendra Khatri, principal at Insubuy, an online travel insurance marketplace, advises: “Take the time to review the perks and see what’s really covered in different situations.”
You can then weigh those amounts against what you can afford to pay out of your own pocket. Trip Advisor can help you review your policies and make sure you are fully covered. Purchasing directly from a travel insurance company will give you information about your options, but not individual advice.
if the cost of travel just went up
Suppose you add a tour or rental to your trip after purchasing insurance. You may have the wrong policy.
Dan Skilken, President of TripInsurance.com, said:
Luckily, there is a fix. Many travel insurance companies allow you to adjust your travel expenses after you purchase the policy. Skilken recommends contacting your travel insurance company and asking how to update your travel expenses. This does not apply to policies purchased directly through a cruise or tour company and generally cannot be changed.
Above all, understand what the policy is
Tim Dodge, Vice President of Marketing, Arch RoamRight, said: “And ask questions.”
Skimming travel insurance policies may be the biggest mistake travelers make when buying travel insurance.
“Yes, the document is long and not very exciting to read, but dig in with a cup of coffee,” says Christina Tunnah, General Manager of Americas Marketing and Brands at World Nomads. “It’s worth taking the time to read and understand the policy so you know what to expect when the unforeseen happens.”
Would you change your mind? You can get your travel insurance reimbursed.
It’s easy to get the wrong travel insurance.I mean, who has time to read a book whole policy? If you added another element to your vacation, does anyone remember to check with your insurance company?
I’m with you. I just rented a car from Audi on Demand in Houston and thought my travel insurance would cover it. It wasn’t. If I hadn’t written this column, I wouldn’t have known it.Luckily my Visa Signature card Did it It covers Audi, so there it is.
If you find yourself with the wrong travel insurance, there is a solution. Many policies offer a 10-15 day “free look” period after purchase. Usually within the trial period, you can cancel the policy and get a full refund.