Navigating the world of insurance policies can seem like it takes an Ivy League degree to manage.
The terminology, exclusions, pay-ins, and other confusing aspects can be enough to make you give up on the idea of having comprehensive coverage in Cabo!
The good news is that with some understanding, you will soon know what to do and what not to do when choosing an insurance plan – especially if you have never done it before.
Below are eight essential travel insurance tips for beginners:
- What Is Travel Insurance?
Let us start with the basics.
Travel insurance covers expenses incurred if you encounter unexpected issues while on vacation. Policies and plans can vary, as can coverage and premiums.
It all hinges on what you want to cover and how much you are willing to spend doing that.
Travel insurance is designed to protect against risks and financial losses while traveling.
- Why Is It Necessary?
Insurance is always a game of risk versus coverage.
Some of the most comprehensive coverage is also some of the priciest. You need to decide beforehand how much adequate coverage is worth to you.
For example, medical insurance coverage has a lot of risk for the insurance company – medical treatment in some countries can run into the hundreds and thousands of dollars.
While insurance is only there if things go wrong, they can and often do, which is why most travelers prefer having peace of mind and comprehensive coverage.
- Multi-Trip Coverage
Insurance comes in many different forms, is sold in multiple coverage options, and from a multitude of companies.
To know what you need to buy, you must first know a few things about your trip.
Annual travel insurance plans are perfect for travelers who go away from home several times a year. This insurance is typically best suited for multi-trip coverage and covers travelers for a whole year, up to a predetermined maximum duration for each trip.
- What Can You Get Coverage For?
Travel insurance is not limited to medical events.
There are plans and coverage options that cover a variety of other costs, including trip cancellation, lost or delayed baggage, natural disasters, and even emergency dental treatments.
You can also buy personal accident insurance that covers legal expenses, wrongful detention, and personal liability.
- Cancellations Happen
The best-laid plans of mice and men often go awry.
That saying exists for a reason, and vacation plans are not immune to changes or cancellations. Things come up and sometimes (read often) at the last minute, leaving you unable to recoup the money you have already spent on deposits and bookings.
Enter Cancel for Any Reason (CFAR) coverage. This allows you to call off your trip for any reason, provided you meet the requirements of the plan criteria.
- Read The Fine Print
No insurance policy will cover everything – even if it comes close to doing that, it will cost you a small fortune.
Be reasonable with your expectations, and remember that insurance companies still need to turn a profit, or they will not be operational.
Take the time to read through the fine print and coverage criteria, make sure you fully understand them, and if you need clarification, ask for it before you sign a contract.
- Pre-Existing Conditions
This topic is a little more complicated.
A pre-existing condition happened or existed before you applied for insurance coverage.
Insurance typically covers sudden or unexpected events. It usually excludes those that have already occurred.
Insurance companies rarely offer coverage in these scenarios – otherwise, you could buy insurance knowing it is not safe for you to travel, and that means you are just a payout waiting to happen.
You may be eligible for a waiver for pre-existing conditions; speak to your insurance agent for more information.
- Understand Exclusions
Every insurance plan will have exclusions.
Look for a section titled General Policy Exclusions or something similar.
That section will detail a list of situations where you will not be covered. It is commonly a list of specific circumstances. For example, self-inflicted injuries or injuries resulting from criminal acts or activities will not enjoy cover.
Further exclusions may include pregnancy-related problems or loss resulting from being under the influence.
Be sure to read and understand the list of exclusions or descriptions of cover for your policy.
Travel insurance does not have to be a complicated nightmare. Once you understand how the policies work, what coverage is offered, and you have read the fine print, you should have the confidence to choose the best package for your needs.
If you have any questions or concerns, you should contact a reputable insurance company for advice and to lead you through the process of getting the coverage you need.