Top 5 Common Myths People Believe About Travel Insurance

Written By: Taylor McKnight

A Serious Note

Few things can ruin a vacation quite like an unexpected accident or illness, compounded when you arrive at the hospital and discover that your insurance will not cover much of the treatment you might need. Not many people stop to think about the fact that, primarily in the United States, private insurance has several limitations on where it can be used, often limited only to the state of residence, and does not cover any medical treatment incurred outside of the country.

Other issues that may arise during travel could include canceled flights, misplaced luggage, or other issues that could incur significant costs if handled independently. With all of that being said, please consider travel insurance.

Travel insurance is a temporary policy you can take out that is active at the time you are traveling. Depending on the amount of coverage that you purchase, travel insurance policies might only cover small or minor medical expenses, such as a trip to urgent care or some prescriptions, while other more extensive policies cover lost luggage, canceled flights, and a variety of other travel issues.

Amazingly, though, not many people know about travel insurance policies. Some people don’t find out until they are sitting in the emergency room that their medical insurance will not cover what they need if they are out of network. There are also several myths and misconceptions about travel insurance.

An Unserious Note

Of course, when traveling you want to be safe but another thing to prioritize is a fun and good time. You can do this in a plethora of ways when making your way to your next destination. One thing is for sure, do not forget headphones as you do not know what outside noises you can hear at any time in your journey.

There is also the factor of having fun activities stockpiled either in your bag physically or on your phone digitally. While some may not need a distraction, personally I have to have something that will help time pass. Downloading the perfect game to capture your interest is a must if you align with my prior statement.

Do not be worried if you forget this step though. If you’re mid-travel and sitting at the airport or on the road with nothing to do, usually a WIFI or internet connection is available at any time. You can also make your way over to the nearest store in the airport or gas station where they almost always have some sort of activity or game to purchase. With all of this in mind, it reinforces you to invest in a travel protection plan or travel insurance just in case you lose something along the way.

Some Common Myths that People Believe About Travel Insurance

1. Your existing insurance will cover you.

It is understood that everyone should have an insurance plan when maneuvering through life daily. What is included with that plan can vary though as there are so many different kinds of insurance that can affect other parts of life. Just a few common insurances are auto, life, medical, travel, home, property, renter, etc. The list will continue on and on as many things that cost a lump sum of money usually can be insured.

If you have not read the fine print of your current medical insurance coverage, the “your existing insurance will cover you” might not be the case. While some private policies do indeed cover certain travel medical needs, most do not. Tragically, many people mistakenly believe that their insurance is applicable everywhere they go, but even if this is the case and your medical insurance covers some of the expenses, you can almost guarantee that it will count as an out-of-network expense and the cost will be far higher than you would pay otherwise.

This is definitely the case when traveling overseas as many people find out that certain insurance companies and policies are not accepted internationally. Some people when planning trips take an extra step to research hospitals wherever they are traveling just in case of emergency. When doing so it usually will say on the website of insurances that are accepted.

There are special instances of travel insurance that can extend a medical insurance policy or provides its on medical parachute. A very thorough look-through is recommended when getting any insurance policy but especially do so in case of these circumstances.

Side Note

If you do wait up until the last second to think about travel insurance and medical issues do not panic. Everyone makes mistakes and you can actually contact your insurance rep while traveling. Granted they definitely wish you would call ahead in order to make plans for the trip you are currently on but something is better than nothing.

2. Nothing will happen.

While you can certainly hope that nothing bad will happen on your trip, it is unwise to assume that everything will be fine. Always be prepared for the worst and hope for the best. Accidents can happen anywhere, and they could be something as minor as an antibiotic-needing infection or as severe as a car accident. Even if you are a perfectly healthy individual, life is unpredictable. It is never a good idea to assume that misfortune will only happen in your home location. Preparing for unforeseen problems should be a part of any regular trip planning.

There have been crazy events unfold on trips from life-threatening situations to the most minuscule detail that creates a domino effect of a missed flight. However, in both of these situations, people have been able to laugh it off with the right attitude and travel plan.

Funny But Not So Funny Story

In my own experience, when traveling with a group of people internationally. We were in Paris, France, and had a conversation about what a mess it would be if one of us lost our passport. Well, within about 48 hours that convo would come true. A girl who was traveling with us had been pickpocketed on a train to the shopping district and it was a time. She had to go to the U.S. Embassy that was in the city to tackle this problem head-on. Luckily, the train had cameras, and the act was caught on tape.

Since the agents of the Embassy knew it was a long shot of her getting her items returned to her, they simply printed her off a new passport along with some temporary payment options. She ironically had travel insurance that helped with this process as well. After the problems were solved, we all laughed about the incident since we had just discussed it. I mean what a coincidence, you know?

3. Travel insurance is difficult to claim.

Certain travel insurance policies necessitate upfront payment, followed by a potentially denied claim for reimbursement. However, not all policies operate in this manner, and they do pay out many legitimate claims annually. Always read the policy thoroughly and purchase the plan you are most comfortable with, as travel insurance is a legitimate form of insurance and will indeed pay for what it says it will cover. Most travel insurance policies will cover medical exams and some prescriptions, medical evacuation, lost luggage, cancelled flights, and baggage loss.

4. Travel insurance does not cover pre-existing conditions.

Again, this depends on the policy. Many travel insurance companies will indeed cover pre-existing conditions if the policy is purchased within a certain time of travel arrangements and if the condition is being treated and is stable. When researching travel insurance policies, truthfully answer any questions about pre-existing conditions and find a policy that will cover yours.

5. If my flight is delayed or canceled, the airline will take care of it.

While certain laws in the United States do indeed require airlines to cover lodging or meal expenses under certain conditions, not every situation falls into this category. This is particularly true if you are traveling overseas, where airlines based in different countries are not required to comply. It is always better to have travel insurance to help cover the cost of delayed or canceled flights, unexpected lodging, or lost luggage.

Before making a decision, you should investigate many other myths about travel insurance, primarily those based on the assumption that nothing will happen on the trip, that medical costs are cheaper outside of the United States and that it will be easier to pay out of pocket, or that pre-existing insurance coverage will take care of any problems you may have. Regrettably, this isn’t always the case, and it’s crucial to conduct thorough research on your travel destination, your insurance policies, and any credit card programs that could potentially cover certain expenses.

Overall, trip insurance is a worthwhile investment, and many policies are so cheap that they are worth considering. For only a couple hundred dollars more at most, you will buy some peace of mind for your upcoming trip, and rest assured that if there is a problem, you will have adequate coverage.

Another Coincidental Situation

This actually happened to me and someone I was traveling with. The day of our flight it got cancelled out of nowhere. While the airline notified us of the cancellation, they did not loop us in on our options. Sadly, at the time we did not have travel insurance to help us out with this issue either. Therefore, that morning was full of very complicated phone calls and plenty of flight lookups. All in all, we got everything worked out and it was a successful trip.

Written by Taylor McKnight, Author for Generali Global Assistance