Understanding what travel insurance really is

Conflict usually arises when the purchaser does not fully understand what travel insurance is and what it covers.

13:58 14 January 2013

Every now and then, we hear stories from people who have purchased travel insurance saying that they’ve been ripped off; that their claims were declined. Well, if we investigate the situation, the common problem usually is the lack of understanding of purchaser about what travel insurance really is and what it covers. What purchasers need to know is that travel insurance, just like any other insurance, has certain guidelines. If you miss these, it’s more likely that your claim will be denied.

That is why, fully understanding the scope of your travel insurance policy is very important. Although reading the policy word for word isn’t exactly fun, it’s the only way for your to know what your policy covers and what it doesn’t.

Keep in mind that every policy has exclusions. Very seldom that you’ll find a comprehensive travel insurance that will protect you from every single event that you can think of when you’re travelling. If there are, the prices would be really steep, that’s for sure.

Also, keep in mind that most travel insurance does not cover missed connecting flights though they cover outward and return final flights. Also, it doesn’t approve claims when the incident happened because the purchaser was negligent. For example, if the purchaser was too drunk and destroyed a property, the insurer will most likely to not cover for the damages.

Also, most travel insurance has maximum level of cover for specific electronic device. So, if the price tag of your laptop, for example, exceeded that level, you cannot expect the insurer to pay you the full amount you originally paid for it.