When you buy travel insurance, you may think you’re covered when something goes sideways during your trip. Here are ten instances when you would be wrong.
Travel insurance works best in situations where you’ve prepaid for trip elements (airfare, tours, hotels) and you can’t travel or have to cut your trip short. For example, trip cancellation coverage reimburses you for airfare and hotel stays when you or a family member gets sick or has an accident that prevents your travel; trip interruption coverage kicks in when something happens to prevent you from reaching your destination or staying there.
I’ve relied on that kind of travel insurance to get back money I couldn’t from travel suppliers; overall, it’s worked fairly well. But problems can arise that are outside the scope of most travel insurance policies. Here are ten to be on the lookout for.
What Travel Insurance Won’t Cover
Security Delays. Travel insurance typically doesn’t apply if you miss a flight due to long lines at the TSA checkpoint. While those aren’t your fault, they aren’t the fault of the airline, either. If you frequent busy airports, consider enrolling in Global Entry or CLEAR where it’s available.
Lost Reservations. A lost hotel reservation isn’t covered by travel insurance. It will have to be taken up with the company or travel agent who lost it.
Double-Booked Accommodation. As with a lost reservation, if you find someone else in the accommodation you booked, travel insurance usually won’t cover the cost of alternative digs.
Accommodation Not as Advertised. An accommodation that’s a lot less desirable than it looked to be online generally isn’t covered by travel insurance. Note to self: do your research on multiple review sites!
Ticket Scams. If your event or tour ticket turns out to be fake, typical travel insurance won’t cover you. Make sure you’re using a trusted ticket seller or tour outlet.
Last-Minute Changes. If your cruise line or tour operator makes a last-minute itinerary or excursion change, travel insurance usually won’t cover any travel issues caused by it, unless the change results in a total cancellation of the trip.
Crummy Destination Conditions. If you arrive at a beach resort and it rains every day or there’s no snow at a ski resort the entire time you’re there, while you may be disappointed, travel insurance won’t help you out. As long as your airline flew you there and the resort is open, you got what you paid for, regardless of whether Mother Nature cooperates.
Missed Connections Due to Bumping. Insurance usually doesn’t cover cancellation penalties or rebooking charges if you’re bumped from a flight and miss a subsequent connection on your itinerary.
Frequent-Flier Awards. If your award ticket is canceled (schedule change, airline bankruptcy), insurance won’t cover a replacement flight or pay you for the points lost. It may, however, cover the cost of re-depositing refunded miles.
Pandemics. Reluctant to fly or want to cut your trip short because a pandemic is underway? Be prepared to be on the hook for the ticket cost, because your travel insurance probably won’t cover you. Note: You may have coverage if the State Department has advised against non-essential travel or a government ordered your airline to cancel your flight or your hotel to close.
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Running into one of these situations doesn’t necessarily mean you’re totally out of luck or out of pocket. It means only that ordinary travel insurance won’t cover your losses. (Note: remember even “cancel for any reason” insurance may not help, as this type of coverage typically ends 48 hours prior to departure from your home.)
You still have recourse against whatever travel supplier made promises when they took your money. In my experience, many are pretty good about reimbursing or compensating travelers they have disappointed or inconvenienced.
If that doesn’t work, and you paid by credit or debit card, you can ask your card provider (usually a bank) to reverse the transaction (this is called asking for a chargeback or disputing a transaction) on the grounds the supplier didn’t deliver the goods or services you paid for.
Twist’s Take: Can’t take your trip? Vacation cut short? Travel insurance usually comes through just fine when you’re seeking reimbursement for prepaid hotels, flights, and tours. But in other situations, looking to your travel insurance carrier for coverage likely will be a disappointment.
