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Why 33% of travelers are being denied travel insurance claims, and how to avoid it

Top 4 reasons for travel insurance denials

JACKSONVILLE, Fla. โ€“ With the holiday travel rush just around the corner, many people are wondering if spending extra on travel insurance is really worth it.

Cindy Graves, an avid traveler, believes it is.

โ€œMy favorite places to travel are overseas, and thatโ€™s why I think itโ€™s important to have travel insurance,โ€ she says.

However, Francesca Vandersluis, another frequent traveler, shares a different perspective.

โ€œI wish travel insurance was more affordable, because life happens, and it would be great not to pay an arm and a leg for coverage,โ€ she said.

Unfortunately, according to recent statistics from Squaremouth Data, 33% of travelers have had their insurance claims denied this year. But why?

The Top 4 Reasons Travel Insurance Claims Are Denied:

1. Minor Inconveniences: The traveler was inconvenienced, but their trip wasnโ€™t completely interrupted.

2. Lack of Documentation: The traveler didnโ€™t have the required paperwork, such as receipts, to support their claim.

3. Policy Limitations: The issue the traveler faced wasnโ€™t covered under the policy they purchased.

4. Pre-existing Medical Conditions: The traveler had a medical condition that was excluded from coverage.

According to Margie Jordan, CEO of Jordan Executive Travel, itโ€™s crucial to fully understand your policy and be aware of whatโ€™s covered and whatโ€™s not.

โ€œA travel insurance company looks closely at the policyโ€™s details, and when it comes to gray areas, thatโ€™s where denials can happen,โ€ Jordan explains.

She stresses the importance of reading the fine print to avoid surprises. For example, missing a cruise departure can be a common issue, especially if travelers fly in the day their cruise departs.

Jordan recommends arriving the night before to avoid complications.

โ€œIf you miss the ship, your policy might require you to make efforts to catch up with the cruise. They may cover the expenses for you to catch up, but if you choose to just go home, youโ€™ll likely lose the cost of the cruise completely,โ€ Jordan warns.

Jordan advises that if youโ€™re traveling internationally, travel insurance is a must.

For domestic trips, she suggests carefully weighing your options. Additionally, if you plan to engage in physical or adventurous activities, like extreme sports or hiking, you may need special coverage.

โ€œIf youโ€™re doing anything extreme, whether itโ€™s hiking Mount Everest or something similar, youโ€™ll need a different type of policy. It wonโ€™t be your standard coverage. Make sure your insurance company knows what youโ€™re planning to do, so you arenโ€™t left with a denied claim,โ€ Jordan adds.

Understanding the nuances of travel insurance can help you avoid costly mistakes. Before your next trip, be sure to choose a policy that aligns with your travel plans and needs.