Travel Insurance Mistakes You're Making Tips to Stay Covered Part01

Posted on January 27, 2025 at 10:06 am

Many years ago, I was in Thailand with my partner at the time, who came down with a very bad case of dengue fever. It threw our trip completely upside down. He was in a private room in a hospital for a full week, with nurses checking on him and taking blood three times a day. Both of our visas also expired while he was in the hospital, so I had to extend them with the hospital’s help.

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I also had to cancel our scheduled onward trips out of the country, along with the accommodation we had booked, and I had to rebook a whole new itinerary. In all, the insurance claim involved multiple categories of claims that all went to different departments at the insurance company. Reimbursements of expenses were in three different currencies and more. It was a mess.

The claims process was not a cakewalk, but in the end, we got reimbursed for many thousands of dollars in expenses, and most importantly, my partner got the care that he needed. Today, I will share with you what I learned through this experience so you can avoid mistakes that could mean the difference between your travel insurance coming through for you or not. Also, I have collaborated with some other very popular travelers, who you may know. They will share their own personal travel insurance experiences, including some hard lessons learned. So, stay tuned. Let’s do this.

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Okay, so first off, what exactly is travel insurance? It’s a safety net for travelers. It covers unexpected losses while traveling, like medical expenses, trip cancellations, lost luggage, and other unforeseen mishaps. I cannot emphasize enough how important travel insurance is, well, certain kinds more than others.

It’s not just about getting your money back for a canceled flight or a lost suitcase. It is knowing that if something goes horribly wrong, like it did for us in Thailand, you have a safety net. So, let’s talk about the different types of travel insurance. Your policy may include any or all of these, some of which are more critical than others. The most important kind of travel insurance, as far as I’m concerned, hands down, is emergency medical insurance.

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It covers or reimburses you for unexpected medical expenses while you travel. Next up is trip cancellation insurance. This kind of insurance will refund you all or part of your non-refundable travel costs in the case of a personal or family medical emergency. Another important one is evacuation insurance.

This covers the cost of getting you to a place with appropriate medical care in case of an emergency, and stay tuned for Dave and Deb to share their story a little bit later on where evacuation insurance was critical. Last up is baggage loss and theft insurance, which covers all or some of the value of your travel belongings if they are lost, stolen, or damaged.

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So, here’s the kicker. Every insurance policy has limitations and exclusions. It is crucial to read the fine print. For instance, most travel insurance policies won’t cover extreme sports injuries or medical expenses related to pre-existing conditions. We will talk about this more in a bit. And if you think your trip cancellation insurance will kick in and refund you for any cancellation, think again.

The criteria are super strict, unless, that is, you specifically got insurance with a cancel-for-any-reason add-on, which is a way more expensive option. Also, be aware of the coverage limits. Your policy might cover medical expenses, but only up to a certain amount. The devil’s in the details, folks, and those details are significant and also mostly beyond the scope of what I can cover today.

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I have included links in the description and the first comment to some written resources that I’ve created that dive deep into the nuances of travel insurance, with some glossaries of terms, pro tips, and more.

Alright, let’s talk about the top travel insurance pitfalls. These are mistakes that you definitely want to avoid because they can turn a manageable situation into a real headache. The biggest mistake you can make is not thoroughly understanding your policy before you travel, and actually, really, before you buy the policy.

If you’re not super familiar with exactly what’s covered and what to do when things go wrong, your claim could be denied. Let me give you a personal example. I’m currently spending the winter in a ski town in Europe. When I was shopping for insurance, I was amazed at how differently the various insurance companies treat skiing.

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Some see skiing of any kind as an adventure sport that requires extra coverage, others cover skiing but only at official resorts on groomed runs. Only a few policies cover all types of skiing. This was a deal breaker for me. I needed a policy that covered all skiing activities because I didn’t want to worry about where I could or couldn’t ski. Imagine breaking a leg off-piste only to find out too late that you’re not covered.

The next mistake is not having enough insurance. If you have too much insurance, it’s a waste of money on premiums, but if you don’t have enough insurance, the repercussions could be financially devastating. Imagine needing an emergency evacuation that costs tens or even hundreds of thousands of dollars, and yes, it can cost that much, but your policy only covers a fraction.

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Emotionally, it’s just as taxing. You’re far from home, you’re vulnerable, and now you’re facing a financial burden and perhaps the possibility of not getting the care that you need. The cost of medical care can vary dramatically depending on where you go. The United States is renowned for having some of the most expensive medical care in the world, so if you are visiting the US, it’s important to know this and to get a policy with a high coverage limit, think like seven figures.

In fact, many insurance policies ask you in the application where you plan to go, and if you list the US, your cost of insurance could be double or even triple. Always assess your needs realistically and choose a policy that provides sufficient coverage. If you’re in doubt, err on the side of caution and get more.

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Next up are pre-existing conditions. A pre-existing condition is anything that you have experienced symptoms of or sought medical attention for in the past. Most insurance policies will not cover pre-existing conditions. What varies is the period of time. Some insurance companies don’t cover pre-existing conditions dating back to six months before you got the policy, others are two years, and some policies just have a blanket exclusion for any pre-existing conditions at all, ever.

Depending on your situation and the type of insurance that you’re getting, you may be required to fill in a medical questionnaire as part of the application. This is where you’ll be asked about your pre-existing conditions, which you’re legally required to disclose. But even if there’s no questionnaire, there may still be language in the policy about pre-existing conditions, and it’s important to note this because if you need to make a claim, they may look into your medical history, and they can deny your claim if they think it’s related to a pre-existing condition.

Travel Insurance Mistakes You’re Making Tips to Stay Covered Part01

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