What you may not be covered for when you travel Every year, many travelers rely on travel insurance to protect them as they visit every corner of the world. If luggage is lost or travelers are forced to cancel their trips, an insurance plan can assist when things go wrong. However, even the strongest trip insurance policies won’t cover every conceivable situation.
From mistake fares to high-risk activities, modern adventurers may be disappointed when their claim for an uncovered situation is denied. Those considering purchasing travel insurance for these five common scenarios may want to ask more questions before assuming their trip is covered.
“Mistake” fares
Known by a number of names, “mistake” fares happen when tickets go on sale at exorbitantly low prices due to a system error. Many common carriers have faced this problem in recent months, including United and Singapore Airlines. As a result, travelers who try to ride on a “mistake” fare often find their tickets ultimately cancelled.
If the carrier cancels the “mistake” ticket and refunds the traveler their money, an insurance claim would be denied because there would is no claim basis. Therefore, most travel insurance policies will not cover a mistake ticket by itself.
However, a travel insurance policy could cover fees associated with other aspects of traveling on a mistake fare, including non-refundable ground transportation and hotel cancellation fees. Before buying a policy, be sure to check if travel insurance would cover non-refundable fees incurred as a result of a cancelled ticket.
Trip cancellation due to pollution
Many central Asian cities are known for more than their culture. Cities like Beijing and New Dehli are also developing a reputation for the brown skies caused by pollution. Smog-filled airways are becoming such a concern that the State Department will begin measuring pollution in cities around the world.
While some medical benefits may be covered as a result of overexposure, travelers may be disappointed to discover that excessive pollution is not a covered reason for trip cancellation. Those who are concerned about exposure to pollution may consider adding Cancel for Any Reason benefits to their travel insurance policy. Under the additional benefit, travelers can cancel their trip at will and still receive a partial refund of their travel costs.
Contact sports and high-risk activities while on vacation
Every traveler has a bucket list. Sometimes, those goals can get lofty quickly. Whether it’s running with the bulls in Spain or cliff-diving in Mexico, everyone has something they want to try at least once. While these opportunities may be life-affirming for some, a travel insurance may not cover injury in the worst-case situation.
Those travelers who want to attempt that high-risk event need to make sure their elective activities are covered. Many insurance companies offer a specific hazardous activity add-on coverage. When purchased, the hazardous activity rider will cover many common high-risk activities, such as contact sports and skydiving.
Policies purchased after known events
This is a common scenario that affect travelers every year. After booking their trip, a weather situation or other natural phenomenon has the potential to ruin the planned vacation. Whether it’s a named winter storm, hurricane, or even a volcano eruption, a natural disaster can sideline a trip for good.
Once a storm is named or natural event identified, this becomes a “known event.” As a result, travel insurance purchased after the “known event” is declared may not offer coverage for cancelled or delayed trips as a result. Those travelers who are concerned about traveling at the height of hurricane season or in the heart of winter should purchase their insurance policy when booking their trip.
Travel within the home country
Something many travelers have never considered is how travel insurance is affected while staying inside their home country. While some benefits may still apply (like baggage loss), other core benefits may not, including medical coverage or medical reimbursement.
Though some travel insurance policies will cover travelers when over 100 miles away from their home as a supplement to health insurance, most trip insurance plans will only cover medical costs when visiting another country. Before deciding on a travel insurance policy, be sure to understand what benefits are applicable while in your home country.
While travel insurance can assist many as they travel, there are some situations where holding a basic plan simply isn’t enough. By understanding what situations are not covered by travel insurance, travelers can make the best plans when organizing their next adventure.