Disclaimer: I’m a travel agent, not an insurance agent. And like many travel agents, I find the whole insurance process to be one of the more stressful things about the business. There are more shades of grey than a certain popular series of erotic fiction.
The first decision on insurance, of course, is whether or not to take it. That is an individual decision, but for those who do decide to take travel insurance, here are some pitfalls to avoid.
This post is also somewhat generic, as things can change so rapidly in this business, and policies vary even with companies. I’m avoiding details in an effort not to be misleading.
1. Get coverage that covers the entire trip, either the entire cost or the entire time. Some insurance companies can deny a claim if the whole trip isn’t covered. Insurance that starts, for example, the day of a cruise or tour, may well not cover missed flights or problems that happen a few days earlier.
2. Don’t dismiss insurance directly from the supplier. Now, it can be a risk to insure with the travel company itself, and if they go out of business there may be no recourse. On the other hand, the cancellation process can be a whole lot easier. Book with Classic Vacations, for example, and their cancellation-change waiver means cancellation results in an immediate refund, without the hassle of paperwork.
3. Don’t miss booking deadlines. There are almost always some insurance options available up to and including the day of departure, especially for medical issues. But in general, most trip cancellation insurance needs to be purchased BEFORE final payment with a cruise or tour, i.e, before penalties kick in. Plus, most insurances that waive pre-existing conditions must be taken soon — at most 21 days — after a deposit is made.
4. Pay attention to cancellation deadlines. Some cancellation insurance doesn’t cover no-shows. Other insurance, especially in my experience from suppliers, may require cancellation a day in advance. This means an accident on the way to the airport, or a missed flight, can be disastrous.
5. Be aware of exclusions. For example, pregnancy is usually excluded from many policies, as are mental health issues. A year ago, I had a family with teenagers going on a Disney Cruise about to take a cheaper third party insurance, until the father casually mentioned his only worry was his daughter’s depression, which she had been hospitalized briefly for in the past.
They switched to Disney’s insurance, which had a cancel for any reason provision to cover most of the trip. While, fortunately, they didn’t need to cancel and ended up having a great vacation, they also had a lot less worry beforehand.
6. Pay attention to pre-existing conditions. If you aren’t sure, ask. Of course, many people have some chronic condition that may be under control. Sometimes those are covered, if there has been no change in X amount of time. Ask first, because the insurance company has the final say.
7. It is possible to cover only medical and emergency trip evacuation costs. Even travelers who are willing to risk losing all their trip costs may not want to risk needing to foot the bill if they have to fly home early and need either several seats, or medical transport. (As a bonus, insurance that doesn’t cover cancellation might still cover trip delay and baggage.)
Again, the simplest way to avoid these problems is to read the cancellation penalties for whatever you are insuring carefully, and read the insurance options just as carefully. If necessary, ask questions and keep a record of the answers. It may be time consuming, but it may also save a good deal of time, money and anguish later.
Janice Hough is a California-based travel agent a travel blogger and a part-time comedy writer. A frequent flier herself, she’s been doing battle with airlines, hotels, and other travel companies for over three decades. Besides writing for Travelers United, Janice has a humor blog at Leftcoastsportsbabe.com (Warning, the political and sports humor therein does not represent the views of anyone but herself.)
