Travel Insurance: Coverage Types and the Claims Process
The last thing you want to do when you're embarking on a trip is get paranoid about being robbed, getting injured or falling ill. You need to plan for these eventualities, of course, but if you do so in the same way you take care of your itinerary and your tickets, it becomes just another detail to check off your to-do list. By all means, don't dwell on the negative possibilities, but take care of business before departure so you can feel safe and secure.
That said, there are some decisions you will have to make -- for regular travelers, perhaps "once and for all," but for summer- or winter-only travelers, perhaps for each annual trip -- and steps you should take to get the best deal, understand your coverage and know the procedure for making any claims. Let's take a quick look at the kinds of coverage, and the sources, before getting into the claims process.
Check what you already have
Before shopping for travel policies, check to see how you are already covered. Many health policies already cover medical expenses during travel, even extended foreign trips, while others cover nothing at all. It may be possible to add riders to existing medical policies, and there may be options available with your homeowner's policy to cover theft and other property losses.
With existing policies, new riders or complete new coverage, always read every word, the fine print and the "even finer" print. Before you step on the airplane, cruise ship or Orient Express (well, any train), you should know exactly what is and what is not covered in terms of your health and your property. Some policies may cover acts of terrorism that cause trip cancellations, while others may not. If trip insurance is part of the tour deal, check it carefully, and make third-party arrangements if you feel you are not getting a good deal.
Follow the rules and regulations
The main thing to remember is that you need your actual policy, the policy number and your insurer contact information (toll-free number, Web and e-mail addresses) with you at all times. Follow the precise steps that are enumerated for seeking medical assistance or reporting thefts. If your policy requires you to get pre-approval for hospital admittance or a doctor's visit, make sure to do that. If you are supposed to contact the insurance company when something happens -- theft, accident, illness or other event -- make sure to do that, as well. Your insurer cannot dispute your claim if you follow the procedures they set and keep good records.
The common sense rules apply after you get pre-approval. If you or a family member falls ill, call the insurer if you need to but seek help at once. When something is stolen, file a police report immediately. Do not forget to get copies of all paperwork, too, signed by doctors, police officers or other authorities. If you want to make a claim on a piece of lost luggage, get a report from the airline about its status. While doing all of these things, of course, you need to be aware of any time limits imposed by your policy or policies, many of which have them. Generally they are around 28-31 days after your return, but check your policies (before leaving, remember?) and if you have any questions at all, or don't understand some clause or section, call up and ask.
Forms and functions
Typically, insurance companies will require you to request, fill out and return a claim form. These days many insurers make these available online, but some firms still want to mail them to you after you contact the customer service department. Always fill the forms out thoroughly and honestly, and send the originals of all the documentation (receipts, medical reports, police filings, etc.) while retaining clear, readable copies of all of them. Always use registered mail, or another kind of shipment (like FedEx or UPS) that can be tracked, in order to prove later, if necessary, that you made the report within the prescribed time frame.
Many policies will now pay eligible claims either to you or the service provider, like a doctor or hospital. When making your claim, you will likely be asked to indicate where the payment(s) will go, whether to reimburse you or others, or both. All specialty travel insurance companies, like your own home and medical insurers, claim that they handle claims quickly and accurately, but not all of them do, of course. Sometimes, the company handling claims is different than the company from which you purchased the policy, so doing everything "by the book" is crucial. As a rule of thumb, claims under $1,000 are handled more swiftly and smoothly than more substantial claims.
Bottom line
Most claims will be handled in reasonable time, and appropriately. After you submit a claim and the supporting paperwork, it is usually just a matter of time for you to receive your reimbursement check or notice of your providers' payments being made. Of course, if you have any problems, the key to success at this stage is simple persistence. Never give up. Continue to contact and work with your insurer until your claim is settled to your complete satisfaction.
Whether you travel regularly, or once a year on a family vacation, you have several options for insuring yourself and your property against illness and loss. If you take care of business ahead of time, you will not have to think about any possible problems, but will be able to travel worry-free, knowing that you are covered for anything that might happen. Planning ahead doesn't just save you time, money and trouble. It also means getting reimbursed for all your lost luggage -- and it just might save your life, too.