Hey there, fellow travelers! Today, we’re talking about what NOT to do when it comes to browsing and buying travel insurance. We’ve had our fair share of travel mishaps and even a few hospital visits in other countries, so we wanted to share some things you should know about travel insurance.
Don’t Think All Travel Insurance Is the Same
The first thing to know about travel insurance is that there are different types of travel insurance. First, there is medical travel insurance, which we’ve used quite a bit. From a broken foot in Miami to a toddler’s smashed hand in China, our medical travel insurance has saved us often. The more common kind of travel insurance is trip insurance, which will reimburse you for certain expenses or delays. These types of policies can cover trip cancellation, trip interruption, lost luggage, missed flights, etc.
Emergency evacuation insurance is something else to consider. Some adventure trips may even require this. This will cover various evacuations, whether it’s a political uprising, impending weather or a serious injury that requires you to be airlifted. Don’t think this covers your medical care, though. It’s just the evacuation to get to a place with better care.
Don’t Forget to Review Your Current Insurance
While you are researching travel insurance, don’t forget to review your existing insurance policies. Homeowners’ or renters’ insurance may already cover lost or damaged items. Ask your health insurance how your coverage varies if you are out of state or out of the country. Your insurance agent might also be able to offer you some packages that include trip insurance or travel medical insurance. Your airline and credit cards may also offer you additional protection.
Don’t Think Travel Medical Coverage is the Same as Your Health Coverage
If you decide to purchase travel medical coverage, read the fine print! It doesn’t work the same as your regular health insurance at home and it definitely doesn’t replace that coverage. In fact, you might be required to have regular health insurance in order to obtain a travel medical plan. Medical travel insurance doesn’t cover everyday costs like prescriptions and over-the-counter drugs. It’s meant to cover unexpected medical issues that pop up. Make sure you bring along enough of your existing prescriptions, and a little extra in case you get delayed.
Don’t Assume Anything About Your Credit Card Coverage
Many credit cards, especially those tied to a travel company, will include some form of travel insurance. However, you really have to read the fine print to make sure you are covered adequately. Sometimes, they only cover purchases that were made on that specific credit card. So, if you put a trip on a Visa card, don’t expect your AMEX travel insurance to cover it.
Don’t Think Trip Insurance Covers Everything
Trip insurance typically covers your travel expenses in the case of delays or cancellations. It doesn’t always include electronics and high-value items. So, if your luggage is lost and you have an expensive camera inside, you may have to rely on your homeowners’ or renters’ insurance rather than your travel insurance. If you travel with expensive gear, make sure you are covered just in case!
Five Things That Never Go in Checked Luggage
Additionally, there may be some things that negate your insurance policy all together. For example, you may have a clause that prohibits you from doing dangerous activities, like skydiving or bungee jumping.
Don’t Forget to File a Police Report
If something happens and you need to file an insurance claim, make sure you also file a police report where it applies. If your wallet, camera, passport, or anything else is stolen and you plan to make an insurance claim, you need to file a police report. The insurance company isn’t just going to take your word for it. Jocelyn was pick-pocketed in Italy and we had to file a police report in order to file a claim. In heavily touristed areas, the police are used to this and will have the forms readily available. You have to do this while you are in the location, you can’t do it once you’ve returned home. Yes, it will take up precious travel time, but it’s usually the only way to get reimbursed.
Where Do Pickpockets Hang Out?
Don’t Think You Can’t Afford Travel Insurance
Many travelers assume travel insurance cost is insanely expensive and opt to not purchase it and hope for the best. But that can really hurt you if something happens. You can find fairly affordable trip insurance, and you can expect to spend between 3% and 8% of your total trip cost on travel insurance. Compared to a medical emergency, the cost of trip insurance isn’t too bad!
Don’t Think You Can Cancel for Any Reason
Even if you have trip insurance, that doesn’t mean you can just cancel your trip at any time for any reason. There are different categories of cancellation and you need to ensure you are covered for likely scenarios, whether it’s the loss of your job or terrorism or strikes in your destination country. And you might need documentation of what you are claiming. There are “cancel for any reason” policies, but they cost more.
Don’t Expect to Get All of Your Money Back
Even if you purchase travel insurance, you’re probably not going to get ALL of your money back. I would guess that the average payout is around 75% to 80% of whatever you are claiming. Sometimes, you can get a full refund, but it really depends on the policy and the situation. Additionally, you have to be prepared to lay out the money for expenses up front, and you’ll then be reimbursed for your claims.
Don’t Assume Travel Insurance Is Optional
Some countries are actually requiring travelers to show proof of insurance. If you take group tours, some tour operators may require it. Make sure you know all the details ahead of time so you’re not stuck at the airport trying to purchase insurance online in order to pass through customs!
Don’t Assume Your Car Insurance at Home Covers Driving Abroad
If you plan to rent a car during your travels, that is a whole other set of insurance questions you need to ask yourself. You need to know if you’re covered abroad, and if you’re covered to drive rental cars.
Don’t Wait to Buy Travel Insurance
Some travel insurance policies can only be purchased within a certain time period. Prices may increase as your travel dates get closer, too. This could also reduce the number of issues that might come up if you do file a claim.
Grab Some Wolters World Travel Gear!
Above all, the number one rule for travel insurance is don’t forget to read the fine print! And don’t be afraid to ask questions both before you buy and during the trip. If you travel a lot, you might consider an annual travel insurance policy over one that covers individual trips. As you can see, there are a lot of questions to ask before buying or declining travel insurance.
Want more of our practical family travel tips? Check out some of our other blog posts: