5 Things Travelers Don't Understand About Travel Insurance

Discussion in 'General Discussion | Travel' started by sobore, Mar 29, 2013.

  1. sobore
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    sobore Gold Member

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    One of the biggest misconceptions in travel insurance is that Cancel For Any Reason coverage is a must-have benefit. For most travelers, the extra cost of purchasing this coverage outweighs the benefits. While Cancel For Any Reason coverage gives travelers the ability to cancel a trip without providing a reason, it adds about 40% to the cost of the premium and comes with a few restrictions. It only reimburses about 75% of trip costs and travelers must cancel at least 48 hours prior to departure. The Cancel For Any Reason benefit is excellent, however, if a traveler has a specific reason to cancel that is not already covered under standard Trip Cancellation.

    Pre-Existing Medical Conditions
    One of the most common misunderstandings travelers encounter is finding they are too late to get Pre-Existing Medical Condition coverage because they waited too long to purchase a policy. What most travelers don't know is this coverage is usually only available if travelers purchase a policy within 30 days of their first trip payment.
    "While pre-existing condition benefits typically don't cost any extra, they are time-sensitive," says Jenna Gravino, Content Marketer at Squaremouth. "Travelers who purchase early get the most choice."

    Trip Cost
    Trip cost is one of the factors that affects a policy's premium the most. Many travelers make the mistake of insuring every expense they will encounter on a trip, including food, gas and other incidentals. However, a travel insurance provider will only reimburse travelers for prepaid, nonrefundable expenses if they cancel a trip.
    "Insuring costs that aren't covered is a quick way to spend too much on travel insurance," says Chris Harvey, CEO of Squaremouth. "The responsibility is on the traveler to avoid purchasing too much cover. Insurance companies don't mind you paying extra for cover you will never be able to use."

    Primary vs. Secondary Emergency Medical
    Someone new to travel insurance might pay needlessly for primary coverage. Primary and secondary Emergency Medical benefits provide similar coverage while travelers are on a trip. The main difference is in the claim. A primary policy will pay a claim, while a secondary policy will only pay a claim after it has been filed with the traveler's main insurance provider. Just because an Emergency Medical benefit is primary doesn't mean the coverage is better, but it does mean the claim may settle faster.

    Read More: http://www.healthnewsdigest.com/new...Don-t-Understand-About-Travel-Insurance.shtml
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