Travel insurance is expensive, but after submitting a few claims over the years, I am thankful for the coverage and the peace of mind. The following tips are the guidelines I use.
Purchase Timing and Choices
I purchase a policy the same day the first travel expense is made, typically the flight. Both USAA and Travel Guard have been reliable insurance companies for me. I don’t choose the insurance offered when booking the flight. The exception would be if I’m using travel rewards, (I usually don’t) and there is an option to recover these rewards in the event of a claim. Instead, I opt for my own personal travel policy. An annual travel policy makes sense for frequent traveling and in that case, my choice has been Allianz. Although some premium level credit cards offer excellent travel insurance. I personally stick with the insurance company.
Travel insurance is usually available in a few different plans and governed by state insurance laws. For example, my state requires a 14 day review of the policy after purchase. I have seen state laws reflected on the end pages of the policy.
Traveling abroad often requires additional benefits and higher levels of coverage, than if I were traveling within the US. Therefore, I review plan details and comparisons. Medical coverage is particularly important, since my personal health insurance doesn’t provide coverage while abroad.
After the initial policy purchase, every time I incur a trip related expense, up until departure, I add the amount to the coverage. In essence, I am building a policy for non-refundable out-of-pocket costs. I avoid over-insuring and I avoid under-insuring. Since travel insurance policies reimburse for money spent and lost, travel rewards are a gray area for me. There was no expensed cash.
If my travel plans change and there are no claims, I request an insurance voucher for future travel. Additionally, some policies come with perks, such as concierge, identity theft, and riders like pet coverage.
Claims
In the event of a claim, I must have accurate and complete supporting documentation. Insurance companies are thorough in the claim process. I have found they only consider a claim for the loss that I apply for. Therefore, if I chose the wrong benefit for the claim, that’s on me. It may be denied, and I would have to resubmit under a different benefit. Without knowing the details of a policy I may not collect on an entitled benefit. Likewise, it’s easy to assume an entitled benefit, which is not accurate.
Finally, I always leave a copy of my policy confirmation page at home. And I read my policy!
