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Travel Insurance
Travel Insurance
emergencies and expenses. International travelers will almost always want to obtain travel insurance
because it covers medical expenses, but even other travelers may find it useful depending on their
plans. Often grouped under the term "Travel Insurance" is trip cancellation insurance, travel medical
(international health insurance), evacuation-only plans, and flight insurance (temporary AD&D).
This article describes common items covered by travel insurance policies and what to check for on
your policy. With any policy, it is important that you read the terms and conditions carefully and that
you especially review the exclusions (things that the policy definitely does not cover).
This article is a general guide to travel insurance policies, including some possible terms but is not
a substitute for careful review of the specific policy you may purchase. Travel insurance
policies differ markedly in their terms and conditions.
How It Works[edit]
Basically, using insurance begins as you encounter any problem after you've purchased coverage
and before or during a trip.. a problem that puts your plans at risk and/or that threatens considerable
cost beyond what you would normally encounter. (This won't include coverage for essential steps on
your trip that you failed to arrange for yourself, e.g., lodging, meals, fully adequate connection times
between flights.)
Once you know the details of the problem (and any cost), you promptly contact the claims people for
the company that issued your policy. You explain the situation, and they instruct you on what to do
for a covered problem.
For problems with modest cost that are covered, you'll likely be told to pay the costs (preferably
by credit card), keep all supporting bills/invoices/receipts, and to file a claim with the company
after your trip is over.
For problems with great cost (e.g., overseas medical evacuation can cost a fortune), the
insurer may do the same...though such costs can easily exceed the maximum "draw" allowed on
your charge card. Better travel insurers also have "preferred providers" in numerous countries,
one of which may be able to help you at lesser cost than others...or even provide the service you
need and directly bill the insurer.
If you do not have the means to pay for what you need (and then wait for reimbursement), and
no preferred provider can be used, some insurers will transfer funds to help. They do so only
after being satisfied about costs encountered, and that they are sending the funds to and for
someone who is covered.
See "Making a claim" below for more discussion.
To wisely purchase coverage, carefully read the policy before buying to assure it provides coverage
you need...per the discussions below.
To be able to use your policy and procedures effectively, print copies and take two or more in
separate bags. In addition, take copies of the instructions on how to contact the insurer's claims
section...at least in two separate bags.
Where to buy[edit]
You purchase travel insurance for international trips through an insurer in your country of
residence, which means the country to which you'd want to be evacuated to or return to after a
serious medical emergency and/or the country you'd need to travel to if a family member became
very ill (these are assumed to be the same country).
If travelling within your country of residence, you can buy cheaper domestic travel insurance within
that country, but you may decide that you do not need it at all if you are willing to risk losing costs
associated with cancellations and so on. This may be true especially for Canadians travelling to the
US where more options may be available after having crossed the border.
You can obtain travel insurance through your travel agent, your normal insurers, or any one of a
number of specialist travel insurers. Travel agents sometimes sell overpriced policies as you are
something of a captive audience. Shop around. Because travel insurance policies are somewhat
interchangeable, there are a number of websites where you can compare policy costs. This article
does not list specific insurers as they are both numerous and country-specific where based.
Sometimes you may be insured via an existing deal. Some credit card companies insure any trip you
take as long as you buy the tickets on a particular credit card. Business travellers may be covered by
a company-wide insurance policy, but if you intend to take any side trips or have a personal holiday,
check the coverage: usually personal holidays on the side must be of a fairly short length to be
covered by a business policy. Be sure to check any "existing deal" carefully and ideally get
confirmation in writing of your coverage. Credit card insurance deals, for example, often offer just
basic coverage, and may be invalidated for travellers who paid travel deposits in cash rather than
using the card.
If a member of a travel association or large professional group, you may find that it offers or
endorses an insurance provider that provides extra coverage or better rates. Failing that, you may
find coverage through on-line search. But take care that the company has a good reputation, e.g.,
from friends/family that have had to file claims, or local travel agents (mere on-line reviews/ratings
may not be genuine).
Very regular travellers may find that "ongoing" or "periodic" travel coverage, typically purchased a
year at a time, can be cheaper than insuring each trip individually. Most major travel insurers offer
such policies. Large businesses often purchase such coverage for their key or frequent travelers.
When to buy[edit]
Some travel agents will offer travel insurance when you book travel, but you can purchase travel
insurance between then and shortly before you depart.However, if you have a "pre-existing
condition" you need covered, you need to purchase coverage promptly, for some insurers
within 2-3 days, others within 10-14 days of first booking (not final purchase of) the travel. Otherwise,
between the booking and departure date or anytime during travel, if you are injured, become ill or
have other reason disallowing or cutting short your travel, you're out of luck. Virtually all policies list
the specific risks any covers. An insurer may offer different policies for different levels of coverage.
Or particularly costly risks may be offered under extra-cost options. Carefully examine all to suit your
needs. After noting the discussions throughout this article, consider the coverage tables below as
typical examples.
As you buy, the number and age of travelers, plus the total known and estimated costs of the trip will
primarily determine the cost of insurance, though other factors influence it. Do not understate any
facts as you apply for/purchase a policy (e.g., , understate travelers' ages, only count the air travel
you've booked); your claim for reimbursement for some "covered" cost may be denied.
What to buy[edit]
There are two major classes of travel insurance:
international travel insurance, covering travel outside your country of residence. This is
an essential part of international trips because many healthcare arrangements won't apply in
other countries (except EU nationals seeking medical attention in other EU states) and you
either need insurance or to be able to pay all medical bills out of pocket; and
domestic travel insurance, covering travel inside your country of residence. These policies are
generally cheaper than international policies because they usually don't include medical
coverage--in your own country, you presumably have other arrangements. They focus on
compensating you for purely travel-related problems like cancellations and closures. They are
also much less essential and you can consider their worth on a trip-by-trip basis.
When buying travel insurance, you should review the dates of coverage (include the day you leave
and the day you arrive home plus a day or two for delays), that it covers what you need, and the
exclusions.
As you digest the kinds of coverage discussed below, you may discover that you only need one or a
few types, e.g., "Medevac" (medical evacuation) from a trip location very far from home. With some
research, you should be able to find separate coverage for each. If you need many types of
coverage, you'll likely want an integrated policy that offers many kinds of "protection", some of which
you may not need. But its cost is likely to be significantly better than separately buying all that you
need.
Check the precise details of medical care that you will be able to claim. If your destination has a
tiered health system with, for example, public and private hospitals, are you able to use a private
hospital?
Does your insurer offer 24 hour contact with emergency advice? These hotlines allow an insurer
to assess a situation and give some advice about medical care as quickly as possible. Your
insurer may have local knowledge that you do not have.
If you take part in any adventure sports or activities like alpine skiing or scuba diving, check your
policy for medical coverage related to accidents that happen while you're doing that activity and
whether or not you need any formal training to be insured. If you can't find a general travel
insurance policy to cover your activity of choice, you may be able to take out a separate policy
from an insurer specializing in that activity.
Is there coverage for illnesses that become apparent after your return? International travel
insurance policies usually exclude medical costs incurred in your country of residence even if
the costs stem from an injury or illness that happened while you were travelling. Medical costs in
your home country are assumed to be covered by your normal healthcare arrangements.
Does the policy have adequate coverage for dental expenses? Some policies provide
substantial amounts for general medical expenses, but only very small amounts (for example,
only $500) for dental expenses.
Coverage for medical care does not automatically include medical evacuation.
Pre-existing conditions[edit]
You may have difficulty obtaining travel insurance if you have a high-risk, pre-existing condition such
as heart disease, or have been diagnosed with contributing factors towards disease, e.g., clotting
problems or high blood pressure. If asked, you may be required to disclose information about major,
existing conditions in your medical history to your insurer, even if you are not seeking coverage for
pre-existing conditions; your policy will usually be completely invalidated if you fail to disclose
something pertinent when asked.
Some policies may cover you generally, but with pre-existing conditions excluded. This is obviously
undesirable if your existing condition causes you significant problems or leaves you at risk. Some
policies will cover pre-existing conditions if you buy coverage within a short time
after bookingyour travel, perhaps 24–48 hours, others for up to two weeks. For many people,
it's worth some research to find such policies. Failing that, if even possible to have your pre-existing
condition covered, you may need to undergo a medical assessment and pay an extra premium for
medical insurance or an extra-cost option in the travel policy.
Pregnancy is considered a pre-existing condition. See tips for women travellers for more information.
Refusal of medical coverage[edit]
Some pre-existing conditions will cause insurers to completely refuse all medical coverage, even for
seemingly unrelated events. This will vary by insurer, but include conditions like terminal illness,
being an organ donation recipient, having AIDS, and similar systemic risky conditions. Such people
may not be able to travel secure of receiving affordable medical treatment for any condition at all.
When medical cover is refused, typically the other provisions of the policy still apply (e.g., claiming
the replacement cost of stolen items).
Older travelers[edit]
Travel insurance becomes increasingly difficult to get after age 55, with your age alone being
considered something of a pre-existing condition. The precise cutoff for receiving insurance without
an addition premium and/or medical examinations varies from 55 to over 70 for some insurers. As
you age, you will face increasingly higher premiums and perhaps excess charges or deductibles on
claims, and your existing medical conditions may be partly or totally excluded.
Caretaker coverage[edit]
If you are incapacitated while traveling, some policies will pay for a relative or friend to travel to you
and either stay with you or escort you home.
Cancellation insurance[edit]
Travel insurance will often cover expenses related to unexpected cancellations by your carrier or
destination providers, e.g., costs associated with a canceled flight, including accommodation, meals
and other incidentals. Cancellations due to emergencies are often also covered, some possible
examples include the following:
You can purchase insurance covering a trip home because of the death of a family member, but
a trip home due to the death of a friend almost certainly won't be covered and even a de facto
partner's death might not be;
Family medical emergencies other than a death often aren't covered; for example the insurance
might not cover a trip home to be with a family member who has been hospitalized or diagnosed
with cancer --even if it's your own child;
Many policies cover cancellations or delays due to terrorist activities, but the August 2006
terrorist threat in London demonstrated that few cover cancellations or delays due to the
mere threat of terrorist activity;
If your transportation carrier shuts down, you may not get paid unless they declare bankruptcy;
Most policies will not cover a strike if you book travel after union members vote to approve a
strike (which could be weeks or months ahead of the actual strike). Also, be aware of de facto
strikes such as a "sickout"--usually by just one segment of the airline (such as pilots). A few
policies may not cover this or cover it only as a delay.
Some policies cover cancellations if a destination has recently become unsafe due to either a
declaration of war or a recommendation by your government to cancel travel to a particular area;
others do not cover this.
Take care with cancellation waivers offered by tour packagers or operators and travel
packagers/consolidators who've arranged your travel. If you or they must cancel, such waivers
typically cover only what you've paid them, and not other related commitments you've made. They
also will have no value if the reason for cancellation is bankruptcy of the packager/operator.
Death[edit]
An insurance policy may cover expenses incurred by your estate related to your own death while
traveling, such as the cost of arranging a local funeral and burial or cremation, or the cost of
transporting your remains home. Having medical expenses covered by insurance is also very
valuable to your next of kin in the event of your death as otherwise that person may be liable and
your children and dependents may have their inheritance greatly reduced or canceled.
There may additionally be a lump sum benefit to your next of kin, although seldom anything like the
amount of money that a life insurance policy might pay.
Itinerary[edit]
The cost of policies often depends on your destination. If you are traveling within your country of
residence you will often be able to get a cheap domestic policy (partly because it may exclude
medical coverage). On the other hand, certain destinations, including South America and Africa, but
also the United States, Canada, and Japan. Those countries have high healthcare costs, and so
require more expensive policies. You may need to disclose your itinerary to the insurer, but some
will simply allow you to nominate the continents you'll visit, or may provide a worldwide policy for a
higher premium.
Many policies require that you purchase them in your country of residence and that you start and
finish your trip there-—that is, you can't buy insurance halfway through your trip and it mustn't lapse
before your planned return-—although there are sometimes exceptions.
Exclusions[edit]
Some insurers refuse to pay medical or any other expenses associated with particular activities.
Aside from pre-existing medical conditions, common exclusions also include anything that happened
to you as a result of an act of war; suicide, attempted suicide, self-harm, anything that you caused by
doing something illegal anything you did while drunk or high, anything caused by a sexually
transmitted disease (excepting ones you have covered as a pre-existing condition), any accidents
you have while participating in an adventure sport not specifically listed as covered, anything caused
by negligence on your part, any theft or damage to your belongings where they judge that you
weren't looking after them sufficiently well.
Some policies may exclude all coverage in certain countries or regions within countries. This is
usually due to danger or serious health issues. Check the fine print of your policy, e.g., in one
section of the policy it may explicitly list a country as eligible for coverage, and then in another
section exclude coverage in any country listed on certain government websites, such as the World
Health Organization or Britain's Foreign and Commonwealth Office.
Excess/deductible[edit]
Some policies have an excess amount (also called a deductible), which is deducted from any claim
you make, so that you will be paid the amount of the claim minus the policy's excess. In general, the
lower the deductible, the higher the insurance premium. Travel insurance with a $5000 deductible
can be as little as $10/month: that means that it will not cover minor expenses or even a mid-level
problem like a broken wrist, but it will be a financial lifesaver if you have a serious accident.
This next table reflects sometimes hidden details of coverage, in this case just for “Trip/flight
cancellation or interruption". A good insurer will explain any qualified details/exceptions behind every
major/top-level type of coverage offered.
Some coverages may be increased by paying additional premiums, e.g., for rental car liability.
Others must be obtained through a separate policy, e.g., under "Injury" you may have no coverage if
you voluntarily participate in risky or violent activities such sky-diving or rugby...unless you opt and
pay for a special option (or rider), perhaps after describing the activity to the insurer. If they decline,
you face getting a separate policy, perhaps from the same insurer...if you're so inclined. Having
already bought a policy, some insurers may allow you to later increase coverage...almost always
except for pre-existing conditions.
As discussed above, look at the details thoroughly, especially if contemplating a trip to distant lands.
Once you have done so, have taken your trip and were happy with the insurer, for a subsequent big
trip you may only need to quickly consider their same policy and options before buying it.
Making a claim[edit]
Most insurers expect you to pay smaller medical expenses and all other expenses you intend to
claim for yourself, and later apply for reimbursement. They will often pay large medical bills, such as
those arising from hospitalization or evacuation, directly. If you are hospitalized, they should be
informed as quickly as possible, since they need to agree that the treatment and associated costs
are necessary. There is usually a clause stating that they will refuse to pay for medical assistance
that they deem unnecessary. If you are incapacitated, your travel companions or contacts at home
will need to deal with the insurer; make sure they have contact details. Many insurers have a 24-
hour hotline that you can call. Often, this service is an advice hotline and the insurer may transfer
you to their professional staff or those in your area to advise you about medical facilities and
services available. If you or a travel companion can first inquire locally about medical capabilities,
that can be useful information.
Do not arrange your own evacuation unless your life is in danger and you or your
companion(s) cannot talk to the insurer first. As above, your insurer may have fully-effective,
alternate means to arrange what you need and avoid costs. They won't pay (or pay fully) if
evacuation is otherwise self-arranged. In case of unavoidable self-arranged evacuation, go no
further than is necessary to obtain proper care, not (in most cases) all the way home.
For anything that is likely to result in a large claim, inform the insurer as soon as possible.
All claims should be filed promptly. Most insurers have a limited period of time after a given event
for which you can claim associated expenses...usually no more than a year.
Claims will need to be documented. Where you are claiming expenses, you will need receipts. If
you're claiming for a theft, you will need a copy of the police report made when you reported the theft
to the police and evidence of the value of the item...possibly proof that you owned it in the first place
(proof of the original purchase will cover both requirements).
Finally, don't file a claim for reimbursable or (to be) reimbursed costs, or avoidable costs.
Your trip insurance is secondary coverage for your trip. Your credit card (if used) may provide
some coverage, you need to ask for and may receive refunds from some providers for all or part
of the costs of tours, lodging, etc., that you had to cancel.
You have a duty to diligently avoid unnecessary costs as you arrange for the premature end of
your trip, e.g., notify tour operators/hoteliers of your circumstances and cancel what you can to
obtain all possible refunds, don't use (or make claims for) five-star hotels and first-class air for
the rest of your group if that was not already part of your trip.
Stay safe[edit]
Many insurers specifically exclude travel to countries and areas known to be extremely dangerous.
As a rough guide, if the US State Department or your own country's government recommends
against any travel to a particular country or area, you will find it difficult to get insurance coverage.
As always, check the terms carefully, and if you are travelling to an unstable region, keep an eye on
the travel warnings for any updates that might invalidate your insurance.
Connect[edit]
If you are incapacitated, your travel companions or contacts at home will need to deal with
the insurer, so make sure they have contact details. Most have a 24-hour hotline that you can
call. Often, this service is an advice hotline and the insurer may transfer you to their professional
staff or those in your area to advise you about medical facilities and services available. If you or a
travel companion can first inquire locally about medical capabilities, that can also be useful.
Make and carry copies of your policy and your insurer's contact details with you. They need to show
the insurer's e-mail address and international phone numbers for advice/authorizations and making
claims. Have another copy in your luggage and online (e-mail to yourself with attachment, or stored
in the "cloud"). If traveling with a laptop or tablet, store a copy in its memory or disc (accessible
without the internet). Also give policy/contact copies to traveling companions and relatives or friends
back home willing to help. They must know with whom, and how you are insured. If you are traveling
to more remote areas (especially alone), give a copy (or at least basic information) to whichever
local person is most responsible for hosting your visit, such as the resort manager or tour guide.
Always legally authorize medical care to any of your minor children and teens not traveling
with you. In many countries, minors cannot consent to medical treatment, and doctors can only give
live-saving care—nothing more—without your permission. Be aware that grandparents and other
close family are not automatically authorized to consent. If there were any delay in contacting you,
medical personnel cannot set broken limbs, give pain relief, etc. This applies to both minors staying
at home without a custodial parent, and trips where minors and their parents will be in different
locations at times during their travels. Avoid causally written permissions, and use a power of
attorney legal document, where you chose another adult to make such medical decisions. This can
be any competent adult, and doesn't have to be (and usually isn't) an attorney. Ready-made forms
are available from libraries, bookstores, or online, and just fill in the blanks. Check if notarization is
required, and where needed, have a certified translation in the legal language of the country where
the minors are staying. Don't forget to leave the document(s) with whomever is caring for your
children, and instruct them to bring it to the doctor's office or emergency room. (Don't give it to any
ambulance or paramedic crew as their roles are considered "essential care," and you run the risk of
the documents getting lost.)