Know what your coverage is BEFORE, so you aren’t surprised DURING or AFTER your trip!

Before buying insurance, it is crucial for consumers to understand what it does and does not cover. Do not just assume that you are inevitably covered for anything that goes wrong. Make sure that any specific concerns you have are covered by your policy prior to purchase.

Misinterpretation of a policy can lead to an automatic denial when the time comes to file a claim. It is essential to understand the common reasons claims are denied so you can give yourself the best chance of getting your claim approved.

Why a travel insurance claim may be denied:

1. Doesn’t Cover Inconveniences – Or if certain planned activities don’t work out: trip must be cancelled, cut short, or delayed by a circumstance listed in the policy. (know the difference between inconvenience and interruption)
2. May Not Be Eligible – Consumers sometimes purchase without first knowing if they are eligible for the coverage they want. If the policy was purchased after issues preventing the trip have risen, those issues will not be covered by the policy.

If a traveler is already too sick to travel upon purchasing the policy, any claim relating to that illness will be regularly denied.

3. No Receipts – simple lack of documentation (essential to prove in documentation that you sustained the expenses you are claiming) credit card statements and the bank can prove that the payments you are claiming for were made, but the process is a lot faster if receipts are kept.
4. Pre-certification – some expenses may not be covered because the proper procedures that the insurance company has stated were not followed. In some plans, benefits can be reduced by 50% if a treatment is not pre-certified.

If an individual falls ill they will simply return home and expect all expenses to be covered because they have “travel insurance”, but transportation must be approved and coordinated by the insurance company which is part of pre-certification.

5. New Claims Not Covered Under Continuation of Coverage – Some plans have a benefit of “continuation of coverage” upon returning to their home country for a limited period of time. This benefit applies to an eligible sickness or injury that may need continuing care even after the policy expires. It would not apply to a new claim after the policy expires or if care was never initiated while still outside of your home country while under the coverage.

All too often, we find that most claims are not covered because the appropriate documentation was not provided, and the insurance company cannot complete the claim process. Like any insurance policy, travel insurance doesn’t always pay every claim.

TravelersAlly educates without overwhelming and won’t leave you with any unexpected surprises.