5 Things Travelers Don't Understand About Travel Insurance
Mar 28, 2013 - 3:29:43 PM
Cancel For Any Reason
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 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.
The Most Expensive Plan is Not Always the Best Plan
Just because a policy is more expensive doesn't mean it offers better coverage. In fact, if the cheapest policy offers the benefits a traveler is looking for, it is often the best choice.
"One of the best recommendations we can make is to evaluate the benefits in a plan, not just the price," says Harvey. "Price is not always an indicator of the quality of a product."
Travelers who are aware of these common misunderstandings will be better equipped to navigate travel insurance policies and find the right coverage at a great price.
Squaremouth is a website that compares travel insurance products from every major U.S. travel insurance provider. Established in 2006, the company has grown from $1 million in sales to $10 million in 2012. Squaremouth is headquartered in St. Petersburg, FL, with offices in Fort Wayne, IN. More information on Squaremouth and its network of providers can be found atwww.squaremouth.com.
About our Zero Complaint Guarantee
The cornerstone of Squaremouth's commitment to customers is their Zero Complaint Guarantee. If a customer feels their claim is handled unfairly, Squaremouth will mediate on their behalf. Any provider with a customer complaint that cannot be resolved with complete satisfaction will be removed from the website.
Squaremouth offers products from the following travel insurance providers:
Air Ambulance Card, Allianz Travel Insurance, AMEX Assurance Company, Azimuth Risk Solutions, LLC, CSA Travel Protection, GeoBlue, Global Alert Administrators, HCC Medical Insurance Services, HTH Worldwide, IMG, iTravelInsured, John Hancock Insurance Agency, Inc., MedjetAssist, MH Ross Travel Insurance Services, RoamRight, Seven Corners Inc, Travel Guard, Travel Insurance Services, Travel Insured International, Travelex Insurance Services, TravelSafe, Trawick International, USA-ASSIST Worldwide Protection, and VacationGuard.
For advertising and promotion on HealthNewsDigest.com, call or email Mike McCurdy at: 877-634-9180 or email@example.com.We are syndicated worldwide and have over 7,000 journalists as subscribers who may use our content for their own media.