General, Travel Insurance

What Travel Insurance Does Not Cover

This is the reason behind some of the most common questions related to what travel insurance covers and doesn’t cover, and it’s important to understand the specifics. The last thing you want to happen is to buy trip insurance, file a claim, and never see payment.

We also don’t want that to happen. The best way to avoid such a situation is to set realistic expectations regarding what is covered and what is not. However, what travel insurance does not cover may vary slightly. The best thing to do is read through every information in your travel insurance plan, including the fine print.

How Do I Know? What Is Travel Insurance?

Travel insurance is one kind intended to cover outlays for unpredicted travel-related incidents. Such items include unavoidable travel delays, luggage loss, medical emergencies, and cancellations. Your travel insurance policy pays out by the details in your coverage when you file a claim.

What Is Travel Insurance

Disease Outbreaks – Important Considerations

Travelling During an Epidemic or Pandemic: Typically, standard travel insurance policies don’t cover fear of travelling there, but they also don’t cover cancellations or interruptions if you travel to an area experiencing an epidemic or pandemic. However, you will be the exception to this rule if you’ve picked “Cancel for Any Reason” (CFAR) coverage.

COVID-19 Coverage: If you, a family member, or a travelling companion contracts COVID-19 and meet specific plan requirements, you can still receive coverage for:

  • Trip Cancellation
  • Trip Interruption
  • Travel Delay
  • Medical & Dental Expenses
  • Emergency Assistance & Transportation

Pre-Existing Conditions: The Timing Factor

  • Coverage Eligibility: Pre-existing medical conditions can complicate your travel insurance. Some plans offer coverage if:
    • You purchase the plan before or within 24 hours of your final trip payment.
    • You are medically fit to travel at the time of purchase.
  • Timing Matters: Two travellers could have different coverage for identical trips based solely on when they bought their insurance. So, act promptly!

Pre-Existing Conditions The Timing Factor

Dangerous Activities: Know the Risks

Excluded Activities: Engaging in high-risk activities can lead to exclusions in your policy. These activities include:

  • Mountain climbing
  • Bungee jumping
  • Skydiving
  • Hang gliding
  • Extreme skiing

Injury Implications: If you sustain injuries while participating in these activities, you may find that medical expenses and related costs are not covered.

Dangerous Activities: Know the Risks

Other Notable Exclusions

  • Fear of Flying or Change of Mind: People with anxiety about flying or a desire to stay home rarely get cancelled coverage.
  • Natural Disasters: If you purchase travel insurance before an event like hurricanes or volcanic eruptions, these events won’t be covered.
  • Last-Minute Itinerary Changes: Travel insurance won’t normally help if you change your mind and choose to skip your cruise or for reasons related to a change in your cruise itinerary at the last minute.
  • Bad Weather: If CFAR coverage is purchased, cancellation is covered due to unfavourable weather.
  • Normal Pregnancy: Normal pregnancy care is not covered by medical expenses, but if you can prove the pregnancy started after the date you purchased the policy, cancellation may be granted.
  • Activities Involving Alcohol or Drugs: Usually, accidents and injuries not caused by intoxication or doing an illegal activity are excluded from coverage.
  • Medical Tourism: Elective surgery tends to be covered by nickels and dimes, not expenses.
  • Frequent-Flyer Miles: Reinstatement costs up to the value of what you paid for the trip initially can be paid back if you cancel a trip that you booked with your frequent flyer miles and for a covered reason, but don’t expect credit back for non-air travel expenses.

What is Included in Travel Insurance?

  • Trip Cancellation and Interruption: Non-refundable expenses that are covered in the event of cancellation or interruption of your trip due to reasons that are covered, such as illness or injury.
  • Emergency Medical Expenses: Medical treatment and hospitalisation required during your trip resulting from an accident or sudden illness.
  • Lost or Stolen Baggage: Payment of amounts lost, stolen or destroyed during travelling.
  • Emergency Evacuation: Coverage for transportation to a medical facility if you are severely injured or sick while travelling.
  • Travel Assistance Services: 24/7 assistance with lost passports, legal referrals or medical emergencies.
  • Rental Car Coverage: Protection from theft or damage of rental vehicles while on your trip.

What is Included in Travel Insurance

Final Thoughts

One of the frequent questions is, what does travel insurance include, and what doesn’t? Understanding the details can help you avoid problems when filing a claim. Nobody wants to buy trip insurance only to have a claim denied.

Don’t allow this by setting realistic expectations and knowing what is specifically excluded from coverage. In most cases, there are differences between what travel insurance may not cover and what is not, so it is better to review your policy details, including the fine print.