MoneyMagpie

Jun 05

Travel insurance claim payout rates by insurer

Reading Time: 3 mins

When you’re planning a trip, you should always take into account the risks that you may encounter along the way.  Travel risks are unavoidable, but it shouldn’t stop you from having a great time on your trip.  When you’re exploring a different country, no matter how safe it is, there are still inevitable situations that could happen.

The best way to address the risks of traveling is getting comprehensive travel insurance. When you make a travel insurance claim, it should be able to cover any cost or losses if something should get wrong on your trip.  The best travel insurance policies will be able to help you when you encounter an emergency situation while traveling.

 

When Does Travel Insurance Pay Out?

Travel insurance pays out in very specific instances, particularly to cover the losses that a traveler may experience.  You may make a travel insurance claim in the following circumstances:

  • Stolen or lost possessions

If travel items such as luggage, essential travel documents, and cash up to a certain amount are stolen or lost during a trip, your insurance will cover it.

  • Medical treatment while on the trip

Insurers cover general medical treatment. However, you need to make sure that you don’t have pre-existing medical conditions or it won’t be covered.

  • Cancellations and other holiday disruptions

Travel insurance usually pays out when there is a disruption such as delayed or cancelled flights, accommodation problems, or a shortened trip.

  • Legal costs

If you need to pay legal fees while traveling or if you need to pay personal liability, your insurance policy will cover it.

 

Exclusions: Instances When Travel Insurance Do Not Pay

Travel insurance does not pay out in several situations.  You may not make a travel insurance claim in the following instances:

  • Undeclared pre-existing medical conditions

When you get ill while traveling due to a pre-existing medical condition, the travel insurance company will not pay for it.

  • Very risky activities and reckless behavior

Your insurance will not be covered when you plan on doing a dangerous activity such as skydiving or windsurfing or if you engage in reckless behavior that causes injuries.

  • Belongings that were left unattended
  • A sudden change of plans

If you suddenly change your mind and do not want to go traveling any longer, you can’t make a claim on your insurance.

 

Overall Protection Payout Rates

Overall payout rates depend on what kind of travel insurance you choose.  Various providers offer different types of plans depending on their customer’s needs. For instance, a travel insurance claim for a deluxe plan is a maximum of $2,000 for trip cancellations and interruptions and $20,000 for medical expenses.  The insurer, on average, will pay out $100,000 for emergency evacuations and $1,000 for baggage loss. On the other end of the spectrum, lower-end travel policies will pay out, on average, $300,000 for evacuation and repatriation, and about $20,000 for medical expenses.

 

Percentage of Travel Insurance Claims Statistics

In 2016 alone, about one million US dollars was paid out by travel insurance companies per day.  Most of the claims were for emergency medical treatment, followed by cancellations and losing baggage or money while traveling.

 

Choosing the Best Travel Insurance

The best travel insurance should be able to offer a comprehensive plan depending on the traveler’s needs. It should be able to give sufficient coverage for all travelers and be very clear about its coverage limitations.

Travel insurance payout rates all differ based on various travelers’ needs.  The best thing to do is to check the payout rates of each insurance company and determine which works best for you.

 

 

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