Travel disasters – will your travel insurance cover you?

There has been incredible disruption to people’s travel plans this year, as extreme weather forced thousands of people to abandon their Christmas trips. While nothing can compensate for calling off Christmas plans, it’s important to know what you’re entitled to. Many people will be left hoping their travel insurance will cover the bill, but not every eventuality is covered – so are you protected?

Travel Insurance Coverage

Not all travel disasters are covered under standard policies, so what can you expect?

Q: My airline went under, can I claim?

A: If you booked flights through an operator that’s now collapsed, you usually won’t qualify for any ATOL compensation and are probably hoping your insurer will pay out.

However, many travel insurance policies will not pay if your airline goes under, so you should contact yours as soon as possible and find out if you are protected.

Q: Snow means my flight is delayed, can I claim?

If you’re delayed at a snowbound airport then a standard travel insurance policy would usually cover you.  Again, travel insurance policies vary so you should check the small print, but a delay of eight to 12 hours will normally mean you qualify for some help from your insurer.

Typically, it will pay you a cash amount for the delay. There’s usually an upper cap on the compensation. Remember to get written confirmation of your delay from the airport as your insurer will need proof.

Q: My flight is cancelled due to the weather, can I claim?

A: You’re unlikely to be covered by your insurance if your flight is cancelled because of the weather.

Fortunately, most airlines will offer a refund or alternative flight if this happens, so you shouldn’t be left out of pocket. Usually, your insurer will agree to transfer the cover to the new flight at no additional cost. However, any additional expenses you incur by switching flights are unlikely to be met by your insurer.

Q: I’ve been waiting for over a day, I want to abandon the trip. Can I claim?

A: Under certain circumstances, and if the flight has not been cancelled but just severely delayed, you could abandon your trip and reclaim a certain amount of money from your insurer.

However, check with your them before leaving the airport to make sure you’ve waited long enough to qualify for cover. Again, you’ll need written confirmation of the delay from the airport.

Lost Luggage Second Most Common Travel Insurance Claim

Lost luggage is a key component of most travel insurance policies, and it’s the second most common travel insurance claim.

Lost Luggage Insurance

Interesting, though, lost or delayed luggage insurance covers the outbound leg of your journey but seldom pays off if your bag disappears on the way home, as the insurance company sees it as less of an inconvenience.

This coverage is meant to replace necessities you need on the trip that you now have to buy, though some lost baggage policies have a provision that if your bag is lost on your homebound leg you should go back to your common insurance carrier or your airline and if they didn’t make good on your loss, than the travel insurance policy should.

If anything you pack is worth more than either what a lost baggage policy will cover or exceeds the maximum liability an airline will assume for a lost bag — usually $2,500 — you can buy excess valuation coverage at the airline check-in counter. It’s not insurance, but it will increase the carrier’s potential liability. Most airlines will charge a buck per $100 of extra coverage, usually capping their maximum liability at five grand. Airlines may refuse to sell you the coverage if your items are too valuable or breakable.

Notify the travel insurance company holding your lost baggage policy of your loss. Some companies require notification within 45 days following the loss of your baggage. You then receive a claims form from the travel insurance company.

Fill out the lost baggage claims form. In some cases, a travel insurance company may accept a copy of the claims form you filed with the airline carrier as long as your policy number appears on that form.  Attach a list of the lost items and the value of each item. Also, include a receipt that your airline carrier handled your baggage.

Make sure your belongings are fully covered with travel insurance when you travel, buy the best and most comprehensive travel insurance cover for you belongings.

Travel Insurance is Like a Box of Chocolates…

With travel insurance, as with life or a box of chocolates, you sometimes never know what you’re gonna get. But if you learn the basics, it can be a lot more predictable than you might think.

Travel Insurance

First, decide if you need travel insurance.
Review your existing insurance and credit card benefits to see if they already cover emergency medical care, lost or delayed baggage, or trip interruption/cancellation. If you don’t already have such coverage for a trip, you should consider purchasing travel insurance. If a trip’s expensive, and you’re planning it eight months down the road, a lot of things can happen between now and then. And if it’s more than you feel comfortable losing, you should ensure that amount. Decide how much risk you’re comfortable taking as a traveler and break out the numbers, especially when considering trip cancellation coverage.

Second, shop around for coverage and compare.
You can buy travel insurance directly from an insurance agent or a traditional travel agent, through an online travel agency, airline, travel company, credit card company, or any number of other vendors. As you shop around for coverage, note that the U.S. Travel Insurance Association (USTIA) ranks insurers in good standing. Check out travel insurance comparison sites.

Be sure what you’re buying is actually insurance and not a waiver plan. A pre-departure waiver plan from a travel supplier is more a promise to pay in certain circumstances, but since it’s not actually insurance your state’s insurance department can’t help you if you have a dispute.

Third, know exclusions associated with your travel insurance coverage.
Read through the limitations and exclusions you’ll get a good understanding of what they’ll cover and what they won’t. Damage to natural teeth might be covered, damage to false teeth, maybe not. Or, scuba diving mishaps might be covered, but only up to a certain depth. And a favorite exclusion are any accidents caused by the insured being intoxicated.