What You Need To Know About Travel Insurance

I am not an insurance salesman nor do I work for an insurance company.  However, I have been around the block a few times and have learned a thing or two about buying insurance. This is especially true about buying “Travel Insurance” and that is what I want to talk to you about.

First you need to know that there really isn’t anything such as Travel Insurance. What we call travel insurance is in reality a cross between travel protection plans and an insurance policy. Suppliers offer Travel Protection Plans that are usually underwritten by a third party insurance company. Travel (trip) Insurance are a travel product offered by an insurance company. Most Travel Insurance companies sell only Trip Insurance.

Trip Protection Plans from Suppliers usually cover the immediate cost of the trip with that supplier. So, if you spend $2000 with a cruise line and purchase their trip protection plan you will be entitled to up to the amount you paid the supplier up to the $2000. They rarely cover repatriation cost, emergency medical cost, any transportation they did not arrange etc.

Travel Insurance does everything that the trip protection plans do but also will continue all other expenses associated with your travel. Things like medical expenses, repatriation and cost of all services for which you pay money.  In both cases the plans will have conditions, limitations and exclusions.

We recommend that you take advantage of these opportunities to protect your travel investments. At the very least you should avail yourself of the supplier plans but we think you should really look at the Travel Insurance plans if you want the maximum coverage.

Now a few points when buying all types of trip protection:

1. Timing is everything . . . . . There is nothing more important than timing when it comes to any type of insurance. When you buy is often more important than the what you buy. Timing allows these companies to offer incentive coverage. Things like covering a Pre-Existing Conditions Waiver; Supplier Bankruptcy, Default, and  Cancellation coverage; or even “Cancel For Any Reason” (CFAR) benefits to clients who purchase coverage within a set number of days of initial deposit.

Keep in mind that if your are reading, watching or hearing about something happening it is probably too late to cover that item.  For example, a hurricane has entered the Caribbean will make it too late to buy coverage for your cruise. It works just like flood insurance and you know what they say about that . . . . “It's too late to buy flood insurance when the flood waters are rising!" Not only is this true for hurricanes it also applies to terrorist attacks, winter storms, and any major event that would normally be covered.

2. Insurance only covers the unknown and what if’s. What I mean is - there must still be an unknown element to your travel. If there is not, then it cannot be  insured it because the issue has already been resolved.  For example, no one would try to get auto coverage after they have an accident and expect that accident to have coverage. The same applies to travel insurance. If you know you need to cancel, then it’s probably too late to get coverage.

3. Documentation is never personal.  A request for 3rd party verification is not a question of the agent or customer's integrity. It is simply a condition of coverage.  In every instance of a claim there must be verification by another source. Think of it this way, the claim is a non-fiction story but until verified that is all it is, a story. one, but still a story. When all the facts check out, the process is quick and painless. It is when documentation is nonexistent, or doesn't match the story, that we will see complications.

4. No insurance covers the fear of something happening. We are living through a terrific example of this, the Coronavirus.  I is covered if you catch the prior to the trip’s departure date or while on the trip. However, it will only be covered through a “Cancel for Any Reason” policy and even then you better read the Exclusion section of the policy. Fear of catching something is not covered and will not get you a refund of your trip cost.  No one is eligible for trip cancellation if they are simply afraid of what may happen.

5. Exclusions always apply. The single most imporatantpart of any trip protection plan is the section entitled EXCLUSIONS. The most important information in any kind of insurance or protection policy is the list of what is not covered or included.

This section lists everythiing the carrier refuses to cover because they don’t feel that the premium they are collecting is sufficient to the risk. Some standard exclusions are war, crimes, and the most infamous of, all acts of god. Additionally, all travel insurance policies in the market today, exclude pre-existing conditions. The only way to get them covered is to get a waiver usually at an additional premium. This is why it is important you are familiar with the exclusions of the product you are buying 
 
As a Travel Agent I have seen a lot of third Party Coverages. My first recommendation to clients is a company that has the fewest exclusions. Companies that have hidden exclusions in their policy and use words, such as "Act of God" is not a plan I would recommend to those who are not insurance experts. And let's face it, most people aren't. Consequently we recommend TravelSafe for all your travel needs