Travel insurance can save you thousands of dollars and hours of worry. This article examines some factors that may prevent you from getting adequate insurance.
Age. Some companies will not provide travel insurance for very young infants (usually under fourteen days) or for the elderly (cut off ages range from ages 65 to 84). In the United Kingdom, older travelers often cannot get any travel insurance at all. In the United States, it is not as difficult to find a company willing to issue an insurance policy, but premiums are usually higher than they would be for younger travelers, and coverage may be reduced. One travel insurance website, for instance, offers benefits of up to one million dollars for travelers under age 70. For travelers over age 80, the maximum benefit is only ten thousand dollars.
Pre-existing conditions. Travel insurance companies are extremely wary of pre-existing conditions. Issuing insurance to someone with a serious, uncontrolled health problem dramatically increases the likelihood that the company will have to pay a large claim. Insurance companies handle this risk in two ways. A few decline to insure individuals with such conditions. The vast majority will issue travel insurance, but will not cover anything related to the pre-existing condition. Since each company defines pre-existing conditions a little differently, it is important to read the policy carefully before you purchase it so there are no surprises about what will or will not be covered.
Pregnancy. Some travel insurance companies will not cover women who are in the last trimester of a pregnancy.
High risk travel destinations. Most travel insurance companies tend to shy away from issuing policies to travelers heading for countries that are facing war or civil unrest. Any coverage they do offer will almost certainly specifically exclude acts of terrorism and acts of war, both declared and undeclared. If you absolutely must travel to one of these areas, however, don't despair. There are a few companies that do offer terrorism and war zone coverage. Expect to pay very high premiums. And as always, read the policy carefully before you buy it.
High risk activities. Each insurance company defines high risk activities a little differently. Some decline to cover only the most dangerous sports or pursuits, while others may not cover an activity as benign as horseback riding. If you're an adventurer, be sure you know what activities are and are not covered by your travel insurance policy before you leave home.
Bankrupt airline, cruise line, etc. If you make reservations on an airline or cruise line that is under bankruptcy protection, you may not be able to get travel insurance for that portion of your trip. Sometimes you may have very limited choice about which lines you use, but when options exist, select the one that is not bankrupt.
History of multiple claims. Finally, if you have a history of filing claims--especially suspect claims--against travel insurance policies, you may find it difficult to get coverage. Insurance companies tend to be great believers in the motto, "The past predicts the future." If you've filed a lot of times before, chances are you will do so again, and that makes you a bad risk.
Some of these factors, like age and pre-existing conditions, are not under your control. Others, like traveling to a dangerous destination, participating in a high-risk sport, or selecting a bankrupt airline for your trip are more a matter of choice. Before you make your travel plans, think about how your selections might influence your ability to get adequate travel insurance.
Finally, if you are turned down for travel insurance by one company, check with a few more companies. Different companies have different policies, and some are more willing to tolerate risk than others. Be patient and persistent. After all, a little aggravation locating the right policy now can save you a lot of aggravation later!
