Do you have too much travel insurance? – Forbes Advisor

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When Brice Hagood moved to Europe, he wanted to make sure he had sufficient travel insurance. He went with an expensive type of travel insurance called expat insurance which also covered auto and medical care. But he soon began to wonder: he had mashed potato a lot of travel insurance?

“I found I was paying almost double what my colleagues were paying and three times more than the locals,” says Hagood, a personal trainer.

Yes, it is possible to be over-insured. You can pay for insurance coverage you already have or for insurance you don’t need. But in any case, why spend too much on travel insurance? It is quite expensive as it is.

Travel insurance is as much a psychological as it is practical product. That is to say, it’s not just about coverage, but also about peace of mind.

“When you travel a lot, it’s hard to relax if you’re too focused on risk aversion,” says Hagood. “When you have adequate insurance, it allows you to give things a chance. I panicked when I had a tummy ache when I didn’t have insurance, but now I fearlessly eat street food. “

So how do you know if you have too many travel insurance?

“With the rapidly changing travel landscape, the peace of mind that a travel insurance policy can offer has become more important than ever for many travelers,” said Martin Nolan, senior director of legal, public and regulatory affairs at Skyscanner. “But there is a huge variety of different policies and it can be difficult to understand what is covered and what is not and what you really need to consider when choosing the right policy.”

What must be insured?

It’s easy to over-insure your trip if you don’t know what needs to be insured. But what exactly needs to be insured?

“When you buy travel cancellation and curtailment insurance, you need to insure prepaid, non-refundable travel expenses,” says Jeremy Murchland, president of Seven Corners, a travel insurance provider. “Travel insurance will reimburse you for this amount. If your airline, cruise company or hotel will refund part of the cost in the event of a trip cancellation or interruption, you don’t need to insure it. Many people don’t understand this and buy higher dollar coverage than necessary, insuring all their expenses prepaid, including repayable amounts. “

Her tip: review your bills and bills for payment and check the refundable and non-refundable amounts. Once you know this, you can avoid an overinsurance mistake.

Take an inventory to find out if you have too much travel insurance

Take an inventory of your current insurance coverage. This includes your auto and homeowners insurance and any protection from your credit card. Do this even if you don’t have any immediate travel plans.

“It is always advisable to undergo an annual review with your insurance agent to discuss coverage and potential policy changes,” says Shawna Kessler, insurance consultant at the Meadowbrook Insurance Agency in Michigan.

One area where travelers tend to overlap their coverage is on rental cars. For example, car insurance, credit card, and travel insurance can cover a rental car. Kessler recommends that at least one of these policies cover the reimbursement of the vehicle rental in the event that the vehicle is out of service and transportation is required.

“Road service is a must,” he adds. “Make sure you know what the towing radius is on your policy, it may need to be adjusted according to your trip.”

In conclusion, Rajeev Shrivastava, CEO of VisitorsCoverage.com: “It is essential that you do your homework in advance and know exactly what your plan covers and what doesn’t.”

Telltale signs that you are over-insured

But how do you know if you are over-insured? It turns out there are some telltale signs.

“A change in travel plans can lead to too much insurance,” says David Tuzzolino, founder of PathBridge Financial, a financial advisory firm specializing in working with travelers. “A trip that gets shorter, a travel group that shrinks, or a destination cut off from your itinerary can leave you with more insurance than necessary.”

For example, if a member of your family abandons a trip or shortens holidays, you may be overinsured.

And, like Hagood, Tuzzolino recommends checking your medical coverage carefully.

“Make sure you don’t buy insurance when you’re already covered. Your current health policy and credit card can make certain types of travel insurance superfluous,” he says.

More expensive doesn’t mean better

“Travelers have nothing to gain by spending too much on travel insurance coverage for their trip,” says Kasara Barto, a spokesperson for Squaremouth, a travel insurance company. “Just because a policy is more expensive doesn’t necessarily mean it offers better coverage.”

At the same time, it makes sense to look for the travel insurance company you are considering. Make sure it delivers the promised services and pays for legitimate complaints promptly rather than giving customers the problem when they file a complaint. Sometimes a slightly more expensive policy from a company with a good customer service experience is superior to a cheaper one from a less reputable company.

Also, travel insurance companies like to present their products in terms of “good”, “best” and “best”, and who doesn’t want the best?

But look carefully at the gold-plated insurance policies. For example, an expensive “for any reason cancellation policy” will often have many of the same coverage limits as a garden variety policy called hazards. What makes it more expensive? The fact that you can cancel your trip for “any” reason and receive a refund of up to 75%.

Essential tips to avoid buying too many travel insurance

Experts say it is surprisingly difficult to avoid a situation where you are over-insured. But here’s how to avoid it:

Talk to an expert

An insurance agent can help you sort out the various coverage you have and what you are considering. Insurance is often ridiculously complicated. You can help by keeping copies of the cardholder’s contract and insurance policies handy and actively participating in the analysis. Tell your agent what you need and what you think you may need in terms of coverage.

You can’t avoid all the overlaps

A good example of this is lost baggage coverage. If you have a credit card and travel insurance policy, they will likely cover both baggage. This may be unavoidable. Instead, focus on the more expensive coverage areas, such as medical insurance. Having double the coverage won’t help you if you get sick. You will end up paying for both policies.

Consider a long-term solution

If you travel enough, an annual travel insurance policy or a credit card that specializes in travel benefits may help. That way, you’ll know you’re not spending too much on insurance.

Travel travel insurance policies are useful for people who travel once or twice a year, but if you travel more often, an annual policy may be your best bet. It would also eliminate the need to constantly analyze your coverage and give you long-term peace of mind.

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