So where should I buy my travel insurance?

getawayWhen 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’ve also recently welcomed another underwriter, TripInsuranceStore.com, that’s worth checking out.

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)

  • http://www.shipsandtripstravel.com christy Jourdan

    Good article, albeit a little harsh towards we travel agents (although I wish I didn’t always have to defend my industry, it’s or own fault – Professional Travel Agents have not done enough to regulate our end of the business, and the travel suppliers of this world don’t all require some sort of license or certification to represent their products – but that’s a different conversation…) At http://www.shipsandripstravel.com we are very thorough when it comes to travel insurance, and we always price and compare multiple sources, in addition to checking the coverage against sites like insuremytrip.com. The travel insurance companies do pay us a healthy commission to sell thei products – sometimes 25% – but at our company, where we don’t charge any booking fees or administration charges, that extra bit of commission pays for the time we put into helping our clients choose the best plan to suit them – their type of trip, their age, their needs. And although I always love and extra $50 in my commission check, I’m more concerned with keeping our clients happy so they come back to us and refer their friends. The implication that an unscrupulous travel agent might “pimp” a bad but profitable travel coverage plan just doesn’t fit us at all. Our business plan relies on happy customers referring more happy customers, and we don’t do that by selling overpriced and useless “extras”.

  • http://www.journeysbysteve.com Steve Cousino, ACC, CTA

    As a professional travel consultant, I work on a slightly different business model, one that is based on true consulting with the client. Depending on their needs and depending on the details of the travel situation, one policy/company may be right for them over another one. I have a good knowledge of who the “good” insurers are and who likes to take their sweet time paying a legitimate claim. There’s even one travel insurance company who automatically denies a claim, but most often than not an appeal is successful the first time around! It’s this knowledge, plus my assistance in selecting the right policy, plus my support in the event a claim is necessary, that my professional consulting fee covers (among many many other things). The commission from the travel insurance supplier is extra revenue, yes, but by not relying solely on that commission, I prevent myself from pushing one policy or company over another simply because I get paid more.

    That said, I agree with your advice not to buy the first policy offered.

  • http://www.romancetravelconcierge.com/ Destination Weddings

    most people go to travel agents they feel comfortable with and trust anyways and many of us have return clients that know where to come for the best prices and best service. if you’re just searching the internet or yellow pages you have a much better chance of getting ripped off. talk to your friends and get recommendations on agents that they’ve worked with before. that’s the best way to find someone you can trust. or if you do find someone online ask for referrals and go from there.

  • Lisa S

    Chris, thanks for all the links. I find it a somewhat frightening experience to buy travel insurance because of all the fine print and unreputable companies. You piece was very helpful.

  • cherie

    Very true article –be very careful of “travel protection”. Even very reputable travel companies like Grand Circle will try to sell you “travel protection” which is NOT insurance… all you will get is a travel voucher with them with an expiration date and not transferable.

  • http://www.nomadicmatt.com Nomadic Matt

    I think for travelers, world nomads offers the best service and coverage at a fair price. I really enjoy using them and they have a high customer service rating!

  • Sarah

    I have always used insuremytrip.com. I like that I can easily compare plans, costs and coverage there. I strongly believe in purchasing trip insurance for any costs that I would be out if something happened right before I left. However, I also like purchasing from a third party, other than the cruiseline, airline or hotel chain. It often costs much less and covers much more.

  • http://www.carhireexcess.ie/ Car Hire Insurance

    Exactly, Right said. Do not rush to buy travel insurance. Know about the company well, then pick up and move ahead. Compare with all others then take decision.

  • Rachelcox

    I was not impressed with True Traveller. When I found out that they would not cover returning home for a sick relative AT ALL, not even if we paid a higher premium, I wanted to cancel well before the policy was due to kick in. They flat out refused and tried to tell me that no one covers for sick relatives without a medical form being filled out on behalf of every family member, showing that they had no previous illness. This is a sham, I have been flown home for a dying grandparent with no questions asked with my other insurance. Further, TT provided no cover for cancellation and curtailment.

    All in all, they are useless unless you nearly die or have serious medical issues. There are far more issues in life to be included and considered.

    When I had to cancel due to a serious incident which was not under their cover, they refunded 50 per cent. I cancelled my entire trip for one year, one month in. They kept five months of my money for no reason at all, notwithstanding the previous request to cancel their cover well in advance of the start of the policy.

    They are a sham. Never use True Traveller.