When the subject of travel insurance comes up, I’m usually quick to say: Don’t buy the first policy you’re offered.
That’s because the first policy is normally a brochure your travel agent slides across the desk right after you’ve plunked down $14,000 for that dream safari, along with the warning, “You’ll want insurance.”
You will want insurance, but probably — and I stress the “probably” — not from your travel agent.
Agents are often heavily incentivized to sell a particular kind of travel insurance that benefits them (read: high commissions) but not necessarily you (read: lots of fine print). What’s more, they rarely take the time to review the limits of the policy and when it comes time to making a claim, only the very best agents will ensure every appeal is exhausted if you’re denied.
Read this if you don’t believe me.
(How do you know if your agent isn’t one of them? Chances are, if you’re handed two or more brochures, or are encouraged to “shop around” before buying a policy, then your agent’s one of the good guys.)
So where do you buy insurance, then?
I would start by visiting the US Travel Insurance Association Web site. It’s a national association of insurance carriers, third-party administrators, insurance agencies and related businesses involved in the development, administration and marketing of travel insurance. A policy from one of these companies is a pretty safe bet, but again, I would read the policy before you buy.
Not just the brochure, and don’t take a sales representative’s word for it. Read the actual policy. Here’s more on policy limitations that you might encounter.
Squaremouth has a reputation for being the Amazon.com of travel insurance. It allows you to compare policies side-by-side. Another site worth checking out is Insuremytrip, which also enjoys a pretty good rep.
Travel Insurance Review (an underwriter of this site) has a useful blog and guide for travelers who are looking for guidance on a policy.
I would gravitate toward the brands you know, such as Access America, CSA Travel Protection and Travel Guard.
Stay away from anything that you haven’t heard of or that calls itself “travel protection” or isn’t licensed insurance. Also, avoid policies for tour operators or cruises that are not underwritten by an outside insurance agency. In the unlikely event the operator or line goes out of business, your policy could be worthless.
So what about your travel agent? If you’re offered several options and aren’t pressured to make a quick decision, you’re probably OK to buy. Take your time and do your due diligence.
I expect the other agents — the ones who think of travel insurance as just another product to quickly and easily “upsell” their customers — will leave angry comments here.
Bring it.
(Photo: mode/Flickr Creative Commons)
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It is obvious that you do not sell travel insurance. If you did, you know that it is not really the insurance that matters, but the way the claims are processed. And you forgot to tell us that there is primary and secondary coverage which makes a big difference. When you give your readers all the correct information then you will be doing us a good service, but until then, the information that you gave us is poor and bad advise. Travel Guard is the worst company followed by Access America becasue of their claims policies and proceedures. To even mention them shows me that you did not reserach your article. Anyone reading this article should take it with a grain of salt.
The professional travel agents I know aren’t so concerned with a quick, one time sell that you seem to imply is all that agents are about in many of your articles. The agents I know are about building long term relationships that build repeat customers. The reason is simple, money. A quick sell that isn’t in the customers best interests will cost the agent far more than they will make which is why that broad brush you like is so insulting to them. A thirty dollar commission isn’t worth losing a customer over because in the long run that customer would have made an agent far more than thirty dollars.
You are correct that any agent who pressures a customer into any purchase is probably not looking out for the best interests of the customer however the vast majority of agents don’t do that and so it would be nice if you would stop implying that to be the case.
Travel agents do have a vested interest in pushing customers to purchase travel insurance, it’s called looking out for the customer’s best interest and to be truthful, there is a little bit of CYA. If agents don’t suggest it and document that they did so and something goes wrong and the client doesn’t have coverage, guess who gets the blame (and sometimes the lawsuit), that’s right, the travel agent.
I would add Travelex as one of the really good and reputable travel insurance companies.
Chris isn’t licensed to sell insurance, so he doesn’t understand all that he is writing about. There are times that taking out both a travel insurance and a travel cancellation waiver is a good idea. If you live abroad, but purchase your travel arrangements with a US company, you can’t take out coverage with many US travel insurance companies. Out of the various companies we sell, there is one that allows this type of purchase.
I agree with David taht TravelEx is an excellent company to do business with. As with any type of business, there are ones that are decent to work with and ones that make clients jump through hoops to get what they paid for. I believe Mr. Elliott just went to bat for a woman who had coverage through a company that almost never pays their claims on the first submission, yet he is listing them as one he would go to. Those of us in the travel business have lots of options on what we sell. Many of us work with the companies that are there when the chips are down and provide good customer service along with a good, strong product.
I have been in the travel industry for a very long time, from working within the cruiseline to the other side of the fence as a travel agent.
I myself sell only Travel Guard, I have a incredible rep that keep me informed of all updates, and far as filing claims, which I have filed many clients on behave of my clients. Travel Guard has never denied any claim. I have found Travel Guard to be nothing but professional and quick to accommodate my clients needs.
Thank you
Nancy
I sell travel insurance because I had a client who was seriously injured on a trip overseas. This client had a Travel Guard policy. Travel Guard helped while he was hospitalized and booked his flights home. They paid a claim for medical expenses, hospitalization and trip interruption. I sell Travel Guard because of this experience…and because I have a good sales person…and because I can call anytime and get a live person. Not only does travel insurance protect me and my clients, but I enjoy the added revenue. This article is a disservice to anyone who heeds his advice.
I have to agree with the other comments here. Chris Elliot, what were you thinking? You just recommended Access America??? A company who is notorious for denying claims! I just read an article where you went to bat for another Access America victim, now you recommend them?
The comparison websites you recommended are pretty overwhelming too. You don’t need to navigate your way through hundreds of sub par plans. You need a reputable plan from an A+ rated carrier with a solid record for paying claims. You do not find this on a camparison website and you certainly don’t find it at your travel agency.