Top Trip Cancellation Insurance Mistakes to Avoid

 You just booked your trip to go abroad and you can feel the excitement of exploring the unknown mounting inside. You have always wanted to take a dream trip to learn about new cultures and see how other people live.

On your ‘to do’ list was trip cancellation insurance. You rushed online and bought it and are relieved that all the arrangements are in place.

Wait! Don’t rush so fast. Take a look at the trip cancellation insurance mistakes most people make and void them

1. Not understanding the difference between travel insurance and medical insurance:
Travel insurance is usually sold in packages. Example: the most common policies are usually trip cancellation/interruption insurance, medical coverage, baggage loss or damage insurance and insurance from delays.

These are usually sold as a package or individually. You need to know exactly what your package consists of. Don’t think you are covered for medical when you are covered for only travel insurance.

2. Not knowing the date the trip cancellation coverage begins:
Many travellers are confused as to the exact time the policy goes into effect. Trip cancellation is usually effective the day after payment is made and should not be purchased when you are ready to cancel a trip. Example: you are about to go to Iceland and you hear that Ash is falling from the sky. Flights are being cancelled and there is panic everywhere so you rush to buy trip cancellation insurance. You will not be able to get this insurance at any cost. Trip cancellation insurance is only available before a problem or disaster occurs.

3. Cancelling your trip for medical reasons:
If you become ill and have to cancel your trip, you need to see a doctor first and get medical evidence that you are unable to travel. You cannot just decide that you are ill and cannot travel and expect to get compensation without evidence.

Your medical records must state that you visited the doctor before cancelling the trip.

4. Forgetting to save receipts:
Your flight was cancelled and you paid for hotel, meals, transportation and many other items. You were exhausted and did not remember that you should have collected and saved all the receipts. Do not make this mistake as the insurance company will not reimburse these expenses without evidence of payment.

5. Filing a claim for baggage delay on your return trip:
Your flight arrived home and you rushed through immigration to be one of the first persons at the baggage area. You cannot find you baggage and after several hours, you manage to complete all the paper work for baggage delay benefits.

After submitting the claim you were advised that Baggage Delay benefits are only paid when you are going to a destination, not on your return journey. You become angry and resentful as your were not aware that this benefit is only intended to pay for baggage delay when going to a destination.

Many people purchase Trip Cancellation insurance in a rush and do not read the details. Make sure you know what you are buying and shop around for the benefits that will cover your needs.