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Why 33% of travelers are being denied travel insurance claims, and how to avoid it

Top 4 reasons for travel insurance denials

JACKSONVILLE, Fla. – With the holiday travel rush just around the corner, many people are wondering if spending extra on travel insurance is really worth it.

Cindy Graves, an avid traveler, believes it is.

“My favorite places to travel are overseas, and that’s why I think it’s important to have travel insurance,” she says.

However, Francesca Vandersluis, another frequent traveler, shares a different perspective.

“I wish travel insurance was more affordable, because life happens, and it would be great not to pay an arm and a leg for coverage,” she said.

Unfortunately, according to recent statistics from Squaremouth Data, 33% of travelers have had their insurance claims denied this year. But why?

The Top 4 Reasons Travel Insurance Claims Are Denied:

1. Minor Inconveniences: The traveler was inconvenienced, but their trip wasn’t completely interrupted.

2. Lack of Documentation: The traveler didn’t have the required paperwork, such as receipts, to support their claim.

3. Policy Limitations: The issue the traveler faced wasn’t covered under the policy they purchased.

4. Pre-existing Medical Conditions: The traveler had a medical condition that was excluded from coverage.

According to Margie Jordan, CEO of Jordan Executive Travel, it’s crucial to fully understand your policy and be aware of what’s covered and what’s not.

“A travel insurance company looks closely at the policy’s details, and when it comes to gray areas, that’s where denials can happen,” Jordan explains.

She stresses the importance of reading the fine print to avoid surprises. For example, missing a cruise departure can be a common issue, especially if travelers fly in the day their cruise departs.

Jordan recommends arriving the night before to avoid complications.

“If you miss the ship, your policy might require you to make efforts to catch up with the cruise. They may cover the expenses for you to catch up, but if you choose to just go home, you’ll likely lose the cost of the cruise completely,” Jordan warns.

Jordan advises that if you’re traveling internationally, travel insurance is a must.

For domestic trips, she suggests carefully weighing your options. Additionally, if you plan to engage in physical or adventurous activities, like extreme sports or hiking, you may need special coverage.

“If you’re doing anything extreme, whether it’s hiking Mount Everest or something similar, you’ll need a different type of policy. It won’t be your standard coverage. Make sure your insurance company knows what you’re planning to do, so you aren’t left with a denied claim,” Jordan adds.

Understanding the nuances of travel insurance can help you avoid costly mistakes. Before your next trip, be sure to choose a policy that aligns with your travel plans and needs.


About the Author
Tarik Minor headshot

Tarik anchors the 4, 5:30 and 6:30 p.m. weekday newscasts and reports with the I-TEAM.

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