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TOP common myths about travel insurance and what it covers

TOP common myths about travel insurance and what it covers

Travel insurance has become a must-have travel item, especially since the COVID-19 pandemic. While travel insurance may be beneficial for a variety of travels, there is a lot of information about it that is misunderstood.

In the vast majority of circumstances, travel insurance does not imply automatic refunds. There is frequently a mountain of paperwork to file in order to support your case, as well as rigorous dates to meet. And common trip snags (like a flight delay), let alone full blockages (like a flare-up of an ailment you’ve already been diagnosed with), are rarely covered.

What Is Travel Insurance 

Travel insurance is a policy that covers your medical expenses and other losses in the event of an accident or disaster while abroad. It’s important for all travelers, but especially for those traveling to high-risk areas.

Travel insurance myths are more common than you might think, and it’s important to know what they are so you can avoid them.

Travel insurance is a great way to protect your trip and your wallet.

Most types of standard travel insurance policies are valid for international use. If you’re traveling internationally, be sure to purchase a policy that covers medical emergencies outside of the United States or Canada.

TOP common myths about travel insurance and what it covers
TOP common myths about travel insurance and what it covers

VIDEO: Travel insurance myths and the truth from the experts Daniel from Allianz travel insurance

Here are the TOP common myths about travel insurance and what it covers

Myth 1:

Travel insurance is nothing more than medical coverage.
Not at all. The majority of travel interruption or cancellation insurance policies only cover medical crises. This will come in in if you break your leg when skiing in the Alps, but it will not cover basic medical coverage.

Maybe you have a catheter that needs to be updated every two weeks by a doctor, but you’re going on a two-month trip. Many health insurance programs, including Medicare and Medicaid, expressly exclude most medical costs incurred outside of the United States. Furthermore, most travel medical insurance only reimburses emergency medical expenses.

You have two alternatives if you want to be covered for non-emergency medical expenses while traveling:

  • Supplement your current health insurance with international travel coverage. If you travel regularly and/or anticipate needing international medical treatment, the extra expense may be justified (even for a mundane teeth cleaning).
  • Invest in international medical insurance. Many major insurance companies provide health insurance that covers treatment both in your own country and abroad for both emergencies and more routine procedures such as maternity, dentistry, and wellness screenings. Whether you’ve decided to work remotely from abroad or you travel regularly, it’s a good idea to make sure you can see a doctor wherever you are.

Myth 2:

Travel insurance is only useful for extreme sports excursions.
In fact, the opposite is true. Many travel insurance policies expressly exclude high-risk activities such as skydiving, scuba diving, or bungee jumping. If you plan on participating in adventure sports during your vacation, you may need to acquire a separate policy that covers your activity.

Look for coverage for air activities, such as zip lining and hot air ballooning, as well as more daring activities like skydiving, hang gliding, and bungee jumping. Watercrafting, scuba diving, and deep-sea fishing are normally covered under a specific water sport policy. Snow sports insurance can cover snowboarding, skiing, heli-skiing, and ice windsurfing, among other activities.

When acquiring these policies, Squaremouth, a travel insurance comparison engine, recommends at least $50,000 in emergency medical coverage and $100,000 in medical evacuation coverage.

Myth 3:

If you cancel for whatever reason, you can get your money back in full.
Travel insurance’s coverage is sometimes limited in terms of what situations it can be used for. While it will normally cover occurrences such as accidents or extreme weather, it will most likely exclude many additional factors, such as COVID-19 hazards or abruptly canceling your trip due to work or personal obligations.

In some cases, you might want to consider “Cancel For Any Reason” coverage, which can reimburse you regardless of why you need to cancel. However, you will not receive a complete refund. According to the National Association of Insurance Commissioners, policyholders should expect to receive a return of between 50 percent to 75 percent of their upfront premiums.

Even so, there are certain limits. Most CFAR policies, for example, demand you to cancel your trip at least 48 hours before your scheduled departure.

Myth #4:

Only full-time travelers can get the most out of their travel insurance.
While regular travelers will gain greater value from an annual travel insurance policy or their credit card’s travel insurance benefit than those who only travel a few times a year, full-time travelers, such as expats or digital nomads, may be out of luck.

Most travel insurance providers do not cover vacations that go more than 60 days, so check with your own carrier. If your job allows you to work remotely and you’ve decided to travel full-time, don’t expect your travel insurance to cover you.

For visits longer than 60 days, you may wish to choose a digital nomad-specific travel insurance package.

Myth #5:

Travel insurance is just for persons who have medical problems.
If you have a pre-existing ailment that interferes with your vacation, don’t expect travel insurance to cover it. Most insurance expressly exclude coverage for pre-existing diseases or travel undertaken against medical advice.

Be aware that the term “pre-existing condition” has a wide meaning. If you experience a small heart attack while ascending the Eiffel Tower’s steps but have previously been diagnosed with hypertension, your claim may be declined.

Consider a more comprehensive insurance that includes a pre-existing condition waiver to secure coverage.

Myth #6:

You can make a claim when you arrive home.
Contact your insurance provider as soon as possible, depending on the length of your vacation. Some policies require you to tell your trip insurance company within 48 hours of your physician’s advice against travel if you cancel your trip before departure.

The majority of policies require you to submit a formal claim within 20 days of the incident. Within 90 days, supporting paperwork (such as medical documents, a death certificate, or a notice of jury duty) must normally be presented.

Frequent Questions About Travel Insurance
TOP common myths about travel insurance and what it covers

Frequent Questions About Travel Insurance

The answer depends on your destination and the type of trip you are planning. For example, if you’re traveling to a tropical beach destination, medical coverage might be more important than cancellation/interruption coverage. If you’re going on a cruise, coverage for lost personal effects would be more important than medical coverage.

You can buy different levels of travel insurance to meet your needs, but here are some general guidelines:

Medical Insurance – This pays for medical expenses if you become sick or injured during your trip. It covers emergency medical evacuation (if needed) and treatment at a foreign hospital or clinic. It also covers prescription drugs and other medical supplies while you’re traveling. You can purchase this separately or get it bundled with other coverages when you buy trip protection plans through your airline or tour operator.

Cancel for Any Reason – This reimburses you if your trip is canceled due to any reason including bad weather, illness or injury before departure or even natural disasters after departure (such as hurricanes).

Cancel for Cause – This reimburses you if your trip is canceled due to an event covered by the policy, such as serious illness of an immediate family member or death of someone who is an integral part of the family

Most people don’t know that they can save money by buying their travel insurance online in advance, or even at the airport when they’re ready to leave. If you wait until you get sick or have lost something valuable before buying coverage, it will be much more expensive.

Travellers are often faced with unexpected expenses and losses.

The main reason for insurance of travels is to protect against these unexpected financial costs and to ensure that your trip will be a happy and memorable one.

Travel insurance can also provide cover for cancellation or curtailment, lost baggage, medical expenses and emergency evacuation. Some policies also have additional benefits such as personal liability protection, death or dismemberment coverage and trip interruption from events like war, terrorism or civil unrest.

To cover additional transportation costs if your flight is delayed or cancelled, or if you miss a connecting flight because of a problem with an earlier flight.

To cover medical expenses you incur while traveling in another country.

It’s important to check exactly what your travel insurance will cover before you go away, so make sure you read through the policy document carefully and ask any questions that arise so you know exactly what you’re covered for.

If you are traveling with a family, make sure to get travel insurance that covers everyone in your party. Many policies will cover a maximum of two adults traveling together without additional fees, but beyond that you need to pay an additional premium per person.

Is it worth it to pay for travel insurance?

Travel insurance is a must when you’re planning a vacation. You never know when something could go wrong and ruin your trip, and with travel insurance, you can be reimbursed for those unexpected costs.

But the question is: Is it worth it to pay for travel insurance?

The answer depends on several factors, including whether you have existing medical conditions or need prescription medications. If so, you should definitely consider buying coverage. If not, here are some questions to ask yourself before deciding on whether or not to buy travel insurance for your next trip:

Is there anything about my health that might affect my ability to get care abroad?

Do I take any prescription medications?

What happens if I get sick while traveling?

What happens if I get hurt while traveling?

Travel insurance is great for people who want peace of mind and extra protection for their vacation.

If you’re traveling to a country where it’s common for tourists to be kidnapped or robbed, then yes, you may want to consider purchasing travel insurance. But if you’re going somewhere that’s relatively safe like Costa Rica or Thailand, then you probably don’t need it.

Travel insurance is an excellent idea. You’re never going to regret having it, but you will regret not having it.

Travel insurance generally covers cancellation for a variety of reasons, including illness and injury, natural disasters, flight delays and cancellations, missed connections, accidents and injuries that happen during your trip.

While travel insurance covers you for cancellation, it’s important to check what exactly is included. Some policies will cover the costs of cancellation, while others won’t.

If you’ve booked your trip through a travel agent or tour operator, they should cover the cost of cancellation and will often offer to help if there are problems with flights or accommodation. However, this doesn’t always happen so check with them first before cancelling anything yourself.

If you catch COVID-19 and have to cancel your trip, a basic travel insurance coverage is likely to protect you. The cancellation or interruption of your trip as a consequence of a covered incident is covered under trip cancellation/trip interruption plans.

When you buy a flight, it’s often possible to get what’s called “cancellation insurance” at an additional cost. But if you already have a policy with Covid, you may be covered under this policy.

If you’ve bought travel insurance from Covid and your trip is cancelled or delayed by more than 24 hours, you’ll get pay back the cost of your flight. You’ll also get extra money towards alternative transport, accommodation and other expenses.

What is trip interruption reimbursement?

Trip interruption is one of the most common travel insurance claims. It’s easy to understand why: Trips are expensive, and when you have to cancel them, it can be a major financial loss.

What is trip interruption reimbursement?

Trip interruption is an add-on to your travel insurance policy that will reimburse you for the costs of cancelling or postponing a trip. It usually pays out only if your trip is canceled due to certain circumstances (like illness or injury), not if you simply change your mind about going on vacation.

The most common reason for trip interruption coverage is if you become sick or injured while traveling. If you can’t continue with your trip, then this coverage allows you to recoup your travel expenses should you be forced to cancel.

Trip interruption coverage also can be useful in other scenarios:

Natural disasters, like earthquakes and hurricanes, often result in road closures and other travel disruptions. In these cases, travelers can find themselves stranded without reliable transportation options.

Family emergencies often require travelers to cut short their trips early and return home as quickly as possible. Trip interruption insurance can help cover the costs associated with this type of emergency situation by providing reimbursement for flights booked with nonrefundable tickets or hotel stays booked through a third-party website such as Priceline or Expedia where cancellation fees apply.

Another common reason people need trip interruption coverage is when they are unable to fly due to illness or injury within seven days of their scheduled departure date

How do I know if I need trip interruption reimbursement?

If you’re planning to take an overseas flight and want maximum protection against unexpected problems, then trip interruption reimbursement is worth considering. But don’t buy it just because it’s there — this coverage is much more expensive than other types of travel insurance because it’s relatively rare for people to need it.

Read: Do You Need Travel Insurance When Vacationing? The Pros and Cons

Travel insurance may be quite beneficial in a variety of situations. If your luggage is lost, it may be able to pay you for the cost of replacement toiletries and clothing. For approved airline delays, it may pay an additional hotel night or meals. In addition, if you need to cancel or cut short a vacation due to most medical situations or bad weather, it can reimburse nonrefundable reservations.

However, there are many situations that aren’t covered — or are covered only under particular plans and with the proper documentation. Before you rely on travel insurance to save the day, make sure you know what your policy truly covers.

In fact, travel insurance isn’t just for people traveling around the world. There are a few types of policies that can be useful for any traveler or vacationer.

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Itohowo Williams has always been an animal enthusiast and has spent more than ten years working in the pet insurance industry in particular as well as other pet-related sectors. An OnePageSEO Expert. The Pet Insurance Nice Guy. Lover of Pet, Crazy for French Bulldog . Currently Working as a Pet Insurance writer at The goal is to provide valuable insights and tips for pet owners seeking guidance in choosing the right pet insurance plan, with a deep understanding of the factors that impact the cost of pet insurance policies in the Pet Insurance World. With a focus on E.A.T. (Expertise, Authority, and Trustworthiness), Williams is a reliable source for pet owners seeking high-quality pet insurance advice to make informed decisions about their furry friend's health and wellbeing. Follow Williams on twitter @


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