Travelling is one of the greatest life joys, offering new experiences and memories that will last a lifetime. However, unforeseen scenarios during your trip, such as flight cancellations, medical emergencies, or lost belongings, can hamper your travel experience. It is when travel insurance comes to your rescue, as it protects your trip and finances during emergencies.
However, many travellers need to be more careful when buying travel insurance, which can leave them under-protected. In this guide, we will explore the mistakes people make when buying insurance and how to avoid them.
Top 8 Mistakes to Avoid When Buying Travel Insurance
Here are the top 8 mistakes that travellers make when they buy travel insurance and how to avoid them:
1. Buying Insurance at the Eleventh Hour
The worst decision a traveller makes is buying travel insurance at the last minute before travelling. In addition, many travellers do not buy travel insurance at all, as they think their previous trips have gone without mishaps.
However, a scenario may arise where your luck runs out, and you may suffer financial losses during an emergency in your trip. It is ideal to opt for an insurance policy when you plan for your trip, as it will help you buy the best policy with comprehensive coverage at an affordable price.
2. Ignoring the Plan Exclusions
When you opt for travel insurance for your next destination, you must notice that it comes with exclusions. Usually, it depends on the activities you are doing or the accessories you carry for your trip. The insurance company includes several dos and don'ts in the plan that you must keep a notice of when buying the policy.
For instance, if you want to do adventure sports on your trip and your plan does not offer financial coverage, it will cost your fortunes in an emergency. Hence, it becomes crucial for you to read the plan terms and conditions before purchasing the plan.
3. Buying a Cheap or Extremely Expensive Plan
Usually, travellers prefer buying international travel insurance plans with a high coverage limit or a cheap one, as they believe it is a waste of money. Hence, in emergencies, it leaves them underinsured in most cases.
The best plan lies in between the expensive and the cheap plans. Sometimes, a reasonably priced insurance plan will financially cover major damages, saving the cost of applying for a higher travel insurance plan. Similarly, cheap travel insurance will not be useful when filing for bigger claims. Hence, you must assess your coverage requirements to choose the ideal plan.
4. Forgetting to Renew the Plan
Imagine travelling to an international destination for your vacation and wanting to extend your trip to cover one more destination before returning to your country. Suddenly, you lose your baggage during transit or in another process. It will cause a panic situation, and you want to contact your insurer to receive financial coverage for the same.
However, the insurance company informs you that you cannot file a claim as the plan has expired, and you noticed that it expired 24 hours ago. You forget to renew your plan on time as you are enjoying your trip. Hence, you must renew your plan on time to avoid financial stress and haphazard scenarios.
5. Overlooking Baggage and Personal Belongings Protection
Losing your luggage or personal items while travelling to a destination can be frustrating and costly. Many insurance companies may offer minimal baggage coverage, which might not cover the cost of all your belongings. For instance, you may lose your bag containing expensive camera equipment but find that the baggage coverage limit is far lower than the value of the items.
Hence, you must check the baggage coverage limit to avoid such scenarios. If you travel with valuable items, look for a policy with higher baggage coverage or consider a separate insurance rider for specific valuables.
6. Not Keeping Receipts and Documentation
In the event of losing your belongings or requiring medical treatment abroad, keep thorough records of all receipts and relevant documents. Without the receipts, you cannot prove your expenses and losses, potentially delaying or voiding your reimbursement. Insurance companies often require detailed evidence for claims, so neglecting to maintain these records could limit your ability to recoup costs.
7. Not Adhering to Timelines
Imagine you have enjoyed a wonderful vacation, but when you try to file a claim, the insurance provider rejects it, as you have missed the deadline for submitting documentation. Many travellers face this disappointment and end up without reimbursement because they do not understand or meet the deadline requirements.
Hence, knowing the timelines for filing claims is essential to avoid this. If you are running out of time, promptly inform the insurance provider. In certain scenarios, they may grant an extension if there is a valid reason for the delay, though this is discretionary and not guaranteed.
Final Words
Travel insurance is a valuable tool, but it is only effective if you avoid common pitfalls. By understanding your coverage needs, reading the fine print, and planning, you can ensure your travel insurance policy keeps you truly covered. Hence, you must buy travel insurance to stay protected and enjoy peace of mind on your adventures!
