Traveling can be a great way to relax and let your responsibilities melt away. A trip can also go wrong. Travel insurance can’t prevent problems from happening, but it can help you get at least some of your money back if unexpected events ruin your trip. This is where the claims process comes into play.
If you encounter these unexpected problems, you can file a claim with your travel insurance company for reimbursement if your problem is covered by the policy.
To increase your chances of a quick travel insurance payout, take these steps to make the claims process smoother.
Check the Terms and Conditions of Your Travel Insurance
Travel insurance cannot cover every problem. Understand what your policy covers and what it doesn’t cover so you know exactly how the policy will help you. This means you want to read your policy’s benefits, exclusions and coverage limits to make sure you qualify for a claim, and be sure to check any required waiting periods for delays.
For example, if you purchase comprehensive travel insurance that includes a travel delay benefit and you arrive at the airport on the day of your travel to find that your flight has been delayed, this may trigger coverage if the delay is after the specified time specified in your policies.
To receive a refund, check your policy for the requested delay. For example, it can be three, five, six or 12 hours depending on the travel insurance plan. Here, too, check the ceiling for reimbursed travel delay expenses in your insurance policy. Your plan can provide anywhere from $100 to $300 per day, with a total per person limit of, say, $500 to $1,000. Certain items, such as cash, may be excluded from cover.
Another possible scenario: You get injured bungee jumping on a thrill-seeking vacation. If your travel medical insurance doesn’t cover adventure activities – and many do – you won’t be entitled to reimbursement for your medical expenses.
Gather the Documentation
Documentation is important to ensure the speedy payment of a travel insurance claim.
If there is a delay in processing a claim, “the main reason is that the policyholder does not provide sufficient documentation to demonstrate their actual financial loss and thereby allow the insurer to fully evaluate the claim,” says James Page, a spokesman for AIG Travel.
For example, if you’re eligible for a travel delay claim, your travel insurance may cover extra expenses like food, overnight hotel stays, and even a taxi ride to a friend’s house, Page says. “If you provide documentation of these reimbursed expenses, you may be reimbursed up to the maximum amount of this benefit.”
If your trip has to be completely canceled and you apply for trip cancellation insurance, your insurer will want documentation of your out-of-pocket expenses, Page says. This may include confirmation that you have canceled your itinerary with the travel service provider and the amount of any refunds or credits the supplier has offered you as part of your refund.
Travel insurance will only reimburse you for prepaid and non-refundable money that you lose. “In many cases, the contractor may reimburse some of the original cost of the trip, so your insurer really needs to see documentation of what the contractor will or will not reimburse,” he says.
You will need documentation to claim other types of travel insurance cover, such as travel health insurance and luggage insurance.
It is important to keep all receipts in order to make a successful claim. You also want to file a loss report with the airlines or local authorities for issues such as lost luggage.
Submit Your Claim with Documentation
You can call your travel insurance company for help, read the instructions on the website or access the company’s app for instructions on what is needed to complete the claim process.
If possible, submit your claim documentation online for a faster process. For example, AIG Travel has an online “First Notice of Loss Portal” that can lead to faster claim resolution.
Documentation for Travel Insurance Claims
You will need supporting documents when applying for travel insurance. These could include receipts, medical bills and police reports. The specific documentation required depends on the type of travel insurance claim you are filing.
“For example, what might be required for a medical expense claim might be more robust than maybe a baggage or flight delay claim,” says Carol Mueller, spokeswoman for Berkshire Hathaway Travel Protection.
Documentation for a Trip Cancellation Claim
Cancellation documentation depends on the reason you canceled. “In most cases, it’s an injury or illness, so it will require medical records, such as a note from your doctor advising you not to travel,” says Jason Schreier, a spokesman for GoReady Insurance.
For other issues, such as job loss, you’ll need a notarized letter from your previous employer, usually on their company’s letterhead, he says.
You may also need to provide documentation that you have canceled your itinerary with your travel provider and the amount of any refunds or credits that the provider has offered as part of your refund. (You cannot claim money that has been reimbursed by a travel provider such as an airline.) You may need to supply unused tickets.
Travel Delay Claim Documentation
If your airline delays your flight, you’ll need a notification from your airline explaining the reason for the delay, which is usually an email, Schreier says. Usually the cause must be due to weather or mechanical problems to be covered.
Also, be sure to keep—and include with your application—receipts for expenses such as food, hotel stays, transportation, and personal necessities if you experience a delay on your trip.
Documentation for a trip interruption claim
If you need to return home before your trip ends due to illness or injury to you, your travel companion, or a family emergency, you will need to provide appropriate documentation, such as signed medical records or hospital records.
Documentation for claiming luggage and personal belongings
If your airline, train or other transport company loses luggage, you will need to document this by filing a report with the company. Your travel insurance company will usually want proof that the shipping company will not pay you back before they pay your claim.
“One of the most common mistakes is damage or theft of luggage. Policyholders are required to report loss or damage to the airline, police or airport security,” says Schreier. “Without this report, it is unlikely that their claim would have been approved.”
You will also need to submit a list of what you packed and the value of the items.
For stolen personal items, be sure to include a police report or loss report from your travel agency or hotel manager with your claim. You will also need to provide documentation proving the value of the items you are requesting
Documentation for claiming medical expenses
When submitting an application for travel insurance for medical expenses, all medical documentation issued under the care of doctors must be attached.
Save receipts for medications or other medical supplies. You will need to submit all of these materials when you apply.
Travel insurance with cancellation for any reason
What Are the Deadlines for Applying for Travel Insurance?
Claims filing deadlines will vary by company, underwriter and your policy. For example, some travel insurance plans allow as little as 20 days to apply, while others may allow a year.
“It usually ranges from 20 to 90 days from the date the covered loss occurred, although some plans don’t specify a time limit at all,” says Schreier. “However, what is consistent is that all plans usually have the caveat ‘or as soon as reasonably practicable’. Unless someone has suffered an extraordinary event, we usually give clients one year from the date of the covered loss to file a claim.”
Regardless of the time frame, it’s better to act sooner rather than later to secure travel insurance coverage.
Why Are Travel Insurance Claims Delayed?
If you file a claim without all the proper documentation or evidence, the insurance company will send you a message back saying the claim can’t be reviewed yet, Page says.
“It is important to note that this is not a ‘denial’ of a claim. You can still submit the documentation that was requested to review the claim,” says Page.
It is worth highlighting the difference between “incomplete claims” and “rejected claims”.
Page says a lack of receipts and documentation will result in the claim being considered “incomplete,” but the claim may later be “completed” if all required documentation is provided.
Another major reason for a travel insurance claim being denied is that the problem is simply not covered.
For example, if you buy a trip to the Caribbean during hurricane season, make sure your travel insurance covers the weather. If it’s not, and you cancel your trip because of a hurricane, you have a non-covered cancellation, Page says.
If you want your travel insurance plan to cover travel cancellations or Covid-related medical expenses, be sure to buy a Covid travel insurance plan.
Comprehensive travel insurance plans include trip cancellation insurance, but you can only make a cancellation claim if your reason is stated in the policy.
If you want the widest possible option to cancel your trip and get some compensation, look for a policy where you can add ‘cancel for any reason’ travel insurance. This additional cover allows you to cancel your trip for any reason, even if it is not listed in the basic policy as an acceptable reason. Generally, you’ll get 50% or 75% of your non-refundable trip cost back on a “cancel for any reason” basis, depending on the plan, if you cancel at least 48 hours before scheduled departure.
Related: Flight Cancellation Insurance
How to Appeal a Travel Insurance Claim Denial
You have the right to appeal against a refusal and travel insurance companies generally have a procedure that should be followed.
Information on how to file an appeal can probably be found on the travel insurance company’s website or by calling their customer service number.
If you disagree with the denial, first review the terms of your travel policy to clearly understand the denial, says James Page, senior vice president and chief administrative officer of AIG Travel. You may find that you need to provide more information to prove that you have a legitimate claim.
“All claims can be appealed with new information that may not have been submitted when the claim was originally filed,” says Page. And every claim received is thoroughly reviewed according to the terms of the policy.
Many travel insurance companies advise customers to submit claims documentation through an online portal. “By simply entering a claim number and uploading new documents, your claim will move back to the claims team for further review,” says Page.
Take advantage of the Travel Insurance Free Look Period
Daniel Durazo, a spokesman for Allianz Global Assistance, which oversees AIG Travel, suggests reviewing the “free look period.” This is usually 10 to 15 days. During this time, read your policies and understand what they do and don’t cover. If you regret your purchase of travel insurance, you can cancel the policy for a refund and buy another plan.
Another smart move is to work with a travel insurance agent who can help you not only choose the right coverage, but also understand the policy’s limitations. A travel insurance agent can also help you price out the best plans.
Armed with the knowledge of what your travel insurance covers, you can enjoy your travels without any nasty insurance surprises.
What to Expect after Applying for Travel Insurance
Remember to check your email after applying as there may be follow-up requests from your travel insurance company. You may be asked for additional documentation or clarification of your claim.
If your claim is denied, remember to read the details, especially the exclusions, in your travel insurance contract. The claim may have been denied because the incident wasn’t covered by your policy and you didn’t know about it. If you have any further questions, please ask your travel insurance agent for assistance.
If you want to appeal a rejected travel insurance claim, you can usually find instructions on the company’s website or call the customer service number.
Erica Lamberg is a personal finance and travel writer based in suburban Philadelphia. She is a regular contributor to USA Today and her writing contributions include NBC News, U.S. News & World Report, Business Insider, Oprah Magazine and Creditcards.com. Erica is a graduate of the University of Maryland at College Park.
