Travel insurance can provide financial protection when unexpected events disrupt your trip. It can cover costs for things like booking a hotel after a flight cancellation or seeking medical help while traveling.
As air travel becomes busier, more travelers are purchasing travel insurance. According to Squaremouth, a travel insurance comparison platform, claims have increased by 22% compared to last year. This surge follows a global tech outage that stranded many travelers this summer, highlighting the importance of having travel insurance.
However, simply having travel insurance does not guarantee that all claims will be accepted. Jenna Hummer, PR director at Squaremouth, explained, “Many people think that all bad events are covered by travel insurance, but it’s not a catch-all.”
This year, the denial rate for travel insurance claims has risen by 33% compared to last year, according to Squaremouth data.
The acceptance of a claim depends on various factors, including your coverage policy and having sufficient proof of expenses, such as receipts and medical notes. Hummer advises travelers to “know your policy” and understand what is covered.
Here are the top five reasons your travel insurance claim could be denied.
1. You’re Inconvenienced but Not Interrupted
Travel insurance does not cover every inconvenience. For example, if your vacation is ruined by bad weather or if you simply do not enjoy your trip, these situations are typically not covered. Hummer stated, “Things like not having a good time or having it rain the whole week on your beach vacation are usually not covered.”
2. You Don’t Have a Paper Trail
If an event occurs that is covered by your policy, such as needing to cancel a trip due to illness, it is crucial to keep all related documents.
This includes doctor’s notes and receipts for medical visits. Without proof of expenses, claims may not be reimbursed.
Hummer emphasized the importance of organization, saying, “It becomes a huge hassle later on when you’re trying to gather all these receipts.” If you cannot find a receipt, bank or credit card statements can often serve as proof.
3. Your Disruption Is Not Covered by The Policy You Purchased
Flight delays can be frustrating, but not all delays are covered by travel insurance. Hummer pointed out, “It has to be listed on your policy to be covered.” Some policies only cover specific types of delays, such as missed connections or delays over a certain number of hours. It is essential to read the fine print or contact your insurance provider to understand what is covered before purchasing a policy.
If a disruption occurs, it is best to contact your insurance provider immediately. Hummer advised, “Don’t wait, don’t call the airline; call the insurance provider first.” They will guide you on how to process your claim.
4. You Bought Travel Insurance Too Late
Purchasing travel insurance too late can also lead to claim denials. A comprehensive travel insurance policy should cover events caused by inclement weather or other unforeseen circumstances. If you wait until after an event has occurred to buy insurance, you may not be covered.
5. A Pre-Existing Medical Condition Makes You Ineligible for Your Policy
Travelers with pre-existing medical conditions may find that they are not eligible for the coverage they purchased. This can be particularly unfortunate for those who need coverage the most. It is essential to disclose all relevant medical history when applying for travel insurance to avoid potential issues later.
Conclusion
Travel insurance can be a valuable tool for protecting your finances during travel. However, it is important to understand the limitations of your policy and the reasons claims may be denied. By being aware of these factors and keeping thorough documentation, you can increase your chances of a successful claim. Always read the fine print of your policy and reach out to your insurance provider with any questions.
