Common travel insurance mistakes

When it comes to planning a trip, it’s no small feat. From what clothes to pack, and where to stay to what destinations to visit and which foods to try. There’s a lot that goes into a trip, before you even take off. Proper preparation goes a long way to ensuring you make the most of any travel plans.

But you can’t prepare for everything. Lost baggage, inclement weather, and unexpected medical emergencies can unravel even the best laid plans. That’s why Allianz Global Assistance recommends protecting yourself from the unexpected through a travel insurance policy. When used correctly, you can maximize your plan’s coverage. Providing peace of mind whenever (and wherever) you may need it.

In this article we’ll cover some of the common mistakes people make when it comes to their travel insurance, and how they can avoid these potential pitfalls.

1. Not purchasing travel insurance early enough

There’s an age-old adage; timing is everything. The same is true when it comes to purchasing a travel insurance policy. If you wait too long, you could be risking certain coverage benefits that may only be available when you purchase a plan early enough. For example:

Eligibility requirements: Some policies have eligibility requirements that restrict coverage if purchased too close to departure.
Trip cancellation risks: Travel insurance may cover unforeseen circumstances like illness or natural disasters that arise before departure. If insurance is purchased too late, pre-existing issues may not be covered.
No coverage for pre-trip disruptions: If a traveller falls ill or a family emergency arises before purchasing insurance, they may not be reimbursed for trip cancellation costs.

When in doubt; Purchase travel insurance immediately after booking your trip to ensure you receive the fullest coverage from the start.

2. Choosing the cheapest travel insurance policy

Sometimes when planning a trip, there are so many costs involved, like hotels, airfare, excursions and more, that you might want to try and save where you can. And while we encourage you to find the best deals, skimping on travel insurance is not a recommended play. Because depending on the policy you choose, you could be setting yourself up for more expenses down the road. Here’s how:

Insufficient medical coverage: Cheaper policies may not cover high medical costs, particularly for international travel.
Limited trip cancellation and interruption coverage: Some low-cost policies may exclude critical protections, leaving travellers vulnerable to financial loss.
High deductibles: Policies with lower premiums may require high out-of-pocket costs before coverage even kicks in.

When in doubt: Compare policies based on coverage value rather than cost alone. Ensure your travel insurance coverage includes the benefits that may be appropriate for you, such as comprehensive medical benefits, trip cancellation, and baggage protection.

3. Ignoring policy exclusions and limitations

No one likes reading the fine print. But the reality is, there’s a reason policies have it. Insurance policies include limitations and exclusions which are detailed within the policy wording. Some are more apparent than others. Take the time to thoroughly review and understand them so that you don’t exclude yourself from coverage. Such as:

Pre-existing medical conditions: Many policies exclude coverage for conditions diagnosed before purchasing insurance unless explicitly covered.
High-risk activities: Adventurous activities such as scuba diving, skiing, or mountaineering may not be covered under a standard policy.
Alcohol- or drug-related incidents: Claims resulting from intoxication may be denied.

When in doubt: Read the fine print and consult with your insurer to clarify any exclusions you may not understand. If necessary, purchase additional coverage for high-risk activities or pre-existing conditions.

4. Underestimating medical coverage needs

Medical emergencies of any kind are difficult to navigate. It’s even more difficult when you’re faced with a scenario abroad, especially if you’ve opted against additional medical coverage or the medical coverage on your travel insurance policy is inadequate. Here’s a reminder:

Healthcare can be expensive in foreign countries: Hospitalization and emergency medical treatments can cost thousands of dollars without adequate insurance.
Provincial or territorial coverage may be limited abroad: Canadian provincial health insurance plans may not fully cover medical expenses outside Canada.
Emergency evacuation costs aren’t cheap: Air ambulance services can be extremely costly if repatriation is necessary.

When in doubt: Assess medical coverage needs based on the destination, length of travel, and personal health history. Consider a policy that includes emergency medical evacuation and repatriation when travelling abroad or to another province.

5. Overlooking the need for trip interruption or cancellation coverage

All vacations must come to an end. But what happens if it is in the middle of your trip, or worse, before you even leave? In addition to the loss of a trip, you could also lose out on any potential pre-purchased expenses. Instead, protect yourself from the unexpected by purchasing trip interruption and cancellation coverage and take advantage of:

Reimbursement for non-refundable expenses: Flight tickets, accommodations, and tour bookings may be refunded if a trip is canceled due to covered reasons.
Potential coverage for unexpected travel disruptions: Natural disasters, political unrest, or personal emergencies can necessitate trip changes.
Peace of mind for costly trips: High-value trips benefit significantly from cancellation protection for covered reasons.

When in doubt: Ensure your travel insurance plan includes adequate trip cancellation and interruption coverage to safeguard your investment.

6. Not declaring pre-existing medical issues

Failure to disclose pre-existing medical conditions can lead to denied claims, leaving travellers without financial assistance in case of a medical emergency. This crucial step in the process could result in:

Claim denial: Undisclosed conditions could potentially void certain medical coverage.
Higher out-of-pocket expenses: Travellers may be forced to pay for medical treatment if their policy does not cover their specific condition.
Complications in emergency situations: Lack of proper documentation can result in treatment delays or high out-of-pocket costs.

When in doubt: Accurately declare all pre-existing medical conditions when purchasing travel insurance. Some policies offer coverage for stable pre-existing conditions under specific conditions.

7. Failing to understand the claims process

Many travellers are unfamiliar with the travel insurance claims process, leading to delays or denied claims altogether. At Allianz Global Assistance we make the process as smooth as possible for you. Understanding how to file a claim and avoiding potential mistakes can be done by:

Keeping proper documentation: By organizing and keeping receipts, medical reports, and proof of loss can lead to a smoother claims process.
Notifying your insurer promptly: Immediately notify your insurer of medical emergencies or trip cancellations. Allianz Global Assistance has a 24/7 hotline for these scenarios.
Account for specific exclusions: Claims that are unrelated to excluded activities or pre-existing conditions may have the potential to be processed quicker than those that are not.

When in doubt: Familiarize yourself with the Allianz Global Assistance claims process by visiting File a Claim. And keep all necessary documents and follow the guidelines to ensure a smooth claim experience.

We get it, trips are supposed to be enjoyable and relaxing. Whether for business or pleasure.

So, pre-planning for an emergency medical situation or potential trip interruption can seem counterproductive. But the truth is, by not planning (or only half-planning) for the unexpected, can result in far greater issues in the future.

Give yourself the extra peace of mind by researching, reviewing, and understanding which travel insurance policies are the best for you and your next adventure.

To find out more about options through Allianz Global Assistance, visit us online.

Travel insurance is underwritten by CUMIS General Insurance Company, a member of The Co-operators group of companies and administered by Allianz Global Assistance. Allianz Global Assistance is a registered business name of AZGA Service Canada Inc. and AZGA Insurance Agency Canada Ltd.