Travel Insurance Doesn’t Cover Everything: 4 Things To Know Before You Buy
Written by
Sean Bryant
Edited by
Amen Oyiboke
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Booking a vacation is exciting. Whether you’re planning a week of exploring a new location or using the time to lie by the beach, it’s a chance to get away and recharge. Unfortunately, vacations can be expensive. Between airfare, hotels and activities, the cost can add up quickly.
Due to this high price tag, many people begin to consider whether travel insurance is a worthwhile expense. The last thing you want is to get sick or injured, be unable to travel and lose all the money you spent on your trip.
However, travel insurance doesn’t cover everything, so it’s important to understand how policies work before you purchase. Keep reading as we cover four things to know before you buy travel insurance for your next trip.
Understand Medical Coverage If You Have Pre-Existing Conditions
Make sure you understand all aspects of the various policies you are comparing. Some insurance plans include primary coverage, while others may offer secondary coverage. Secondary coverage will only pay for expenses not covered by your primary health insurance.
If you have a pre-existing condition and are worried about coverage, especially if you’re traveling outside the United States, ensure you’ll be fully covered. Before booking travel insurance, understand what your health insurance will pay for, and then make sure travel insurance will cover the rest. Many policies will require an additional waiver to cover any pre-existing condition.
Understand Any Exclusions
Like many other things, travel insurance policies come with exclusions. For instance, most policies cover expenses when a trip is canceled due to weather. However, they may exclude coverage if you travel to a region where bad weather is predicted. For example, if you travel to the Caribbean knowing a hurricane is forecasted, you might not receive compensation if your inbound flight is canceled.
Similarly, if you’re planning any high-risk activities, like skydiving or hiking in a dangerous area, some travel insurance companies will not cover them.
Rental Car Damage Might Not Be Covered
If you’re going to rent a car on vacation, don’t assume your travel insurance will cover any damage. While some plans have rental car coverage, many do not. Instead, you’ll need to take out a policy with the car rental company or look into whether your credit card includes its own benefit that you can utilize.
Personal Property Can Be Covered With Homeowner’s Insurance
If you lose or damage personal property while on vacation, your travel insurance probably won’t cover repairing or replacing it. However, most homeowners’ insurance covers personal property issues during vacations. If it doesn’t, the cost of adding a special rider to your policy is likely less than what you’d pay for travel insurance.
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