Aug 13 2008
Demystifying Travel Insurance: Part 3
Here’s installment three of my four-part series on travel insurance. If you have any questions or comments, be sure to post them.
Shopping On-Line (Four Basics)
1. Know Your Insurance Company.
On-line agents like Insure My Trip and Travel Insured are not the companies who will be providing coverage. It’s always best to check who the insurance company is, and if there is any vagueness or uncertainty in your mind regarding coverage, to be in direct contact with them prior to purchasing the insurance.
2. Review the A.M. Best Rating.
Best insurance ratings indicate the ability of the insurance company to meet their ongoing financial obligations to policyholders. I usually look for an A rated company.
3. Look for Refund Policy – Free Exam Period.
This clause gives you the ability to be emailed the policy and have a period of time to examine it and decide if it meets your needs. This may vary from state to state. Typically the request for a refund must be made in writing within 10-15 days of your receipt of the policy. There is frequently a small non-refundable policy fee which will be deducted from the refund.
4. Consider Pre-Existing Condition Waiver.
This is very important in the event you, a travel companion, or a family member gets sick or injured. An insurer may not pay for any loss incurred from injury or sickness which manifested itself or had symptoms, or required medication, within the pre-existing condition period. This time period varies between policies and can be two to six months prior to your trip.
If there have been medical conditions in the past six months, that could become an issue on your trip, this waiver will provide coverage otherwise excluded. Usually you must purchase the insurance within a specified number of days following the initial trip payment, or prior to the last trip payment.
The waiver may also have other requirements including that the full cost of all prepaid and non-refundable trip expenses are insured (including those that you add subsequently). This can be an issue if you are only planning on insuring certain (and not all) pre-paid trip components.
My Top Coverage Picks For This Week Are:
24 Hour Emergency Assistance.
This coverage is usually provided by a third party and not the insurance provider directly. It’s different from emergency evacuation in that this will cover coordination efforts. Here are examples of the services you can expect:
- Emergency assistance helpline
- Referrals to local doctors, hospitals, pharmacies, lawyers
- Medical condition evaluation and monitoring
- Arrangements for emergency medical evacuation
- Language translation services
- Emergency airline and reservations
- Urgent messages loved ones
- Arrangements for return home of children
- Arrangement for visit to bedside by family or friend
- Emergency cash advances
- Assistance in replacing lost or stolen travel documents
- Concierge Services
Rental Car Collision/Loss.
Provides benefits up to a specified amount if you rent a car while on your trip. This coverage pays damage to the rental car due to collision, theft, vandalism, windstorm, fire, hail, flood or any cause not in your control, or if the car is stolen and not recovered.
Before purchasing, be aware that similar coverage may be provided by insurance offered at no charge through the credit card used for a car rental. I suggest you check that as well as your own car insurance, before paying for any additional coverage associated with travel insurance.
Next Week: Travel Insurance Review and Final Thoughts. Stay Tuned!
>Related Posts:
