Travel insurance is a great way to protect your investment in a trip. It is most valuable when the traveler understands the policy that he or she is purchasing. If a traveler files a claim for an uncovered expense or situation, it will be denied by the insurance company. Make sure you understand your travel insurance policy and take note of the following common reasons why claims are denied:
1. Buying Travel Insurance to Cover an Event that has Already Occurred
The purpose of purchasing travel insurance is to have protection from potential unknown risks that may arise on your trip. Insurance companies will not insure travelers for events and losses that have already occurred. It is important to keep this in mind and to purchase travel insurance in advance before any issues arise.
2. Not Providing Receipts
It is important to keep track of your expenses while traveling. If you incurred losses while on your trip, it is not enough to write down a list of the amounts and submit it to the travel insurance company. Proof in the form of receipts will be required to be reimbursed for the losses you incurred. Travelers will most likely be denied if they fail to provide receipts in connection with their claim.
3. Travelers Do Not Formally Cancel Their Trip
If you purchased travel insurance for an upcoming trip but had to cancel due to unforeseen circumstances, it is important to call the travel agency, carrier or hotel and formally cancel the trip. In order to make a claim on the policy, many travel insurance companies require a formal cancellation as soon as possible. As an added bonus, you may be able to receive a partial refund of any prepaid expenses.
4. Buying a Plan That Doesn’t Cover Pre-Existing Conditions
If you are interested in purchasing medical travel insurance with pre-existing condition coverage, make sure to purchase a plan that offers a pre-existing condition exclusion waiver (meaning it covers pre-existing conditions). Travelers may be denied medical benefits after making a claim if it arises from pre-existing medical conditions, and the traveler chose a plan that doesn’t cover pre-existing conditions. Some plans cover pre-existing conditions if you purchase the plan within a set amount of days from your initial trip payment and insure 100% of your pre-paid and non-refundable trip costs.
5. The Loss Is Not Covered
Travel insurance policies are not universal; policies may differ materially as to the coverage provided. To prevent a potential claim denial in the future, it is important for the traveler to read their policy ahead of time to understand what is and is not covered for their trip and to purchase the policy that covers the risks that are important to them.
Travel insurance is a beneficial accessory to any trip so long as the traveler is aware of and follows the terms and conditions of their policy. When buying travel insurance, make sure to compare plans, understand the coverage offered, and remember the rules above. Safe travels!