Comparing Travel Insurance

COMPARING TRAVEL INSURANCE OFFERINGS

Picking the right travel insurance plan can be overwhelming. There are so many options, and on the surface, they can often look nearly identical. Many plans include similar benefits and coverage amounts for trip cancellation, trip interruption, medical expenses, and emergency evacuation costs. However, if you dig a little deeper, you’ll find no two plans are the same. Knowing what to look for will make choosing the right plan much easier.

To help you determine the best plan for your needs, our product and business development professionals have shared their six key factors to consider when comparing travel insurance plans.

1. Primary vs. Secondary Coverage: If you need medical treatment on your trip, it’s important to understand which kind of coverage you have. If you have primary coverage, that means you will file a claim directly with the travel insurance company and they will be the first to pay out eligible medical expenses, regardless of other insurance coverage you may have. Secondary coverage only pays remaining eligible costs after the primary insurer has paid. This means you may have to file multiple claims with multiple providers, which can lead to delays in having your claim paid out. Generally speaking, if you want the fastest claims experience with the least amount of hassle, choose a plan with primary coverage. However, some travelers may prefer a plan with secondary coverage if they already have other coverage available, as these plans typically cost less.
2. Total Trip Cost Maximums: While most plans offer trip cancellation coverage up to 100% of your trip costs, look closely at the maximum trip cost you can insure on each plan, as that amount may vary. If you are taking a luxury trip or a large family vacation overseas, you’ll want to make sure the plan you’re purchasing has a maximum trip cost that is enough to cover the non-refundable costs of your trip. Some plans have maximum trip costs of $10,000 or less, while others can go up to $150,000.
3. Be Selective with Maximum Benefit Amounts: When first comparing plans, you may be tempted to select the plan with the highest benefits across the board, but it can often be a smarter decision to pick a plan where the maximum limits seem appropriate for the trip you’re planning to take. With medical evacuation coverage maximums, you’ll want to consider where you’re going, what you’re doing, your current medical condition, and more. Similarly, when comparing evacuation coverage limits, a higher maximum limit is more important for trips where you’re more likely to get into a situation where an evacuation might be necessary, like a trip to a remote part of the world. As a consumer, it’s easy to look at a plan that has the highest limits in the highlighted benefits, but consider the risks or trip costs associated with your trip to make the best decision for your needs.
4. Covered Reasons: Always check a plan’s covered reasons. These are the situations that may arise that would allow you to use your trip cancellation benefits, so you want to understand them. Depending on the definitions in a plan wording, sickness of a family member could mean something very different when compared to another plan. Are grandparents included? What about step-children? Some plans even include dogs or cats as covered reasons to cancel a trip. Also, consider what is required to prove the covered reason such as a note from a doctor, or in the case of a pet, a veterinarian. Always read the fine print!
5. Niche Benefits: While many travel insurance plans share the same core benefit structure, always be on the lookout for extras. Some plans offer coverage specific to pet owners, like benefits to cover the cost of an additional night at the kennel if you’re delayed on your way home. If you’re going on a trip where you’ll be renting a car, look for a plan with coverage for damage or theft of a rental car. If your sports equipment like golf clubs or skis are lost, delayed, or damaged in transit to a destination, some plans will offer coverage for you to get rentals instead. Depending on the reason for your trip, there may be a perfect plan for you because of one of these niche benefits that only a certain plan offers.
6. Company Reputation: When you think you’ve found the perfect plan, make sure to consider the company offering the plan. Look for a company that has a history in the market and can be depended on to pay claims. Speaking of claims and service, check to see if the provider outsources their claims and/or customer service teams or if they provide all of their services in-house. When it comes to getting the care, service, and turnaround times you expect, these can often be the key differentiators to having a positive travel insurance experience.

If you have additional questions or want to learn more about IMG and our travel insurance offerings, don’t hesitate to ask. Check out imglobal.com or contact our sales team directly.