Not-so-usual travel insurance pitfalls that might trip you up:
Ready for a rundown on holiday mishaps that leave travelers with empty pockets? Some travel insurance policies have sneaky little exclusions that can jack up your expenses significantly when things go south. Buckle up as we explore common policy loopholes and offer tips to secure the right coverage for your next adventure.
Pre-existing Medical Conditions
Got a sniffle? Don't be surprised if your pre-existing medical condition causes your travel insurance provider to shake their head and shake the money tree somewhere else. If you don't declare any diagnosed medical conditions or previous injuries, some insurers will see that sneaky gap as a green light to deny your claim, potentially costing you tens of thousands of dollars for hospital bills and evacuation charges.
Pro Tip: Be upfront about your medical history, even if it means paying a bit more. Do your homework, and find insurers that offer coverage for your specific condition or add a rider to your policy for peace of mind.
Intoxication-Induced Fiascos
For many, a holiday means letting loose and having a few drinks. But if you wind up face down after a night of revelry, your insurer may jump at the chance to wriggle out of helping you. Claims involving alcohol are often looked at on a case-by-case basis, but insurers aren't averse to using this as an excuse to dodge paying out. Case in point: a man who broke a leg and some ribs at a wedding in Phuket, Thailand, found himself with a whopping $10,300 medical bill when his insurer wouldn't cover his claim due to his inebriated state.
Tipsy Tip: Read the fine print – Duh! And watch out for cocktails with dodgy ingredients – you know whom to blame when your hangover turns into a claim denial.
Private Places Aren't Always Public
Remote destinations can be a dream, but life can still suck if you're skint. You might assume your belongings are covered if they're tucked away in a locked rental car parked on some dusty side street. Wrong! Some insurers exclude thefts, especially from cars parked on "non-public" property. A couple on holiday in Glasgow learned this the hard way when their car was broken into, and the insurer denied their claim.
Pro Tip: Check with your insurer about what they consider public spaces so you know your responsibilities (and limitations). Don't roll the dice on stolen belongings!
Licensing Lapses and Dangerous Driving
Young (and seasoned) Aussies abroad often love cruising around on scooters or motorbikes. But if you hit the road without a valid license, you can find yourself in trouble when it comes to insurance claims. And while riding a quad bike or a motorcycle without the appropriate documentation can lead to claim denial, don't forget about the risky activities exclusion, too. So before you buy your policy, make sure you've told your insurer if you plan to engage in any potentially dangerous activities.
Pro Tip: Be honest with your provider about your travel plans and driving intentions. People who insist on running with the bulls may not be covered if they don't tell their insurer ahead of time.
Find the Best Insurance for Your Next Adventure
- Insurance for a wild Bali getaway
- Insurance for a laid-back Fijian vacation
- Insurance for a Japanese adventure
- Insurance for a kiwi-tastic New Zealand holiday
- Insurance for a luxe Singapore escape
- Insurance for a Thai time extravaganza
- Insurance for a stateside sojourn
- Insurance for a Brit-tastic journey
Protect Yourself: Read the Fine Print
Always read the product disclosure statement (PDS) before you buy travel insurance, and don't just settle for the cheapest policy. The PDS will tell you what's covered, what's excluded, and help you find a policy that actually provides protection in case things go south.
Pro Tips:
- Contact the insurance provider with questions about specific situations to ensure you're adequately covered.
- Persevere with claims if your provider resists.
- Keep all relevant receipts, police reports, and medical records handy – they can help your claim.
Valuable Insights
Common policy exclusions in travel insurance include pre-existing medical conditions, intoxication, private places, unlicensed driving, and risky activities. To secure the right coverage, be transparent with your provider about pre-existing conditions, plan for licensed driving, and seek out policies with add-ons covering adventure sports and risky activities. Always read the fine print and consider purchasing travel insurance policies recommended by reputable sources for the best coverage.
- some travel insurance providers may deny claims related to pre-existing medical conditions if they are not declared, potentially costing consumers tens of thousands of dollars for hospital bills and evacuation charges
- claims involving alcohol can be subject to denial by insurers, even on a case-by-case basis, so consumers should be aware of and watch out for policy exclusions related to intoxication
- theft of belongings from vehicles parked on "non-public" property may not be covered by some insurers, so consumers should check with their providers about what they consider public spaces to avoid such limitations
- participating in potentially dangerous activities without informing the travel insurance provider can result in claim denial, even for activities such as riding scooters or motorbikes without a valid license or engaging in risky sports, so consumers should be honest about their travel plans and intentions to ensure adequate coverage.
