Beyond Rental Car Insurance: 16 Travel Coverage Myths That Cost You Hundreds

Nobody dreams about buying travel insurance. But before you click ‘skip’ on that coverage option, you might want to know about some common misconceptions that could turn your dream vacation into a financial headache.

Here’s what even the most seasoned travelers wish they’d known about travel insurance before learning the hard way.

My Credit Card’s Travel Insurance Is All I Need

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The thing with credit card travel insurance is that it is like using an umbrella in a hurricane. Sure, it provides some protection, but it probably won’t cut it when things get rough.

Most cards won’t help if someone needs a medical evacuation-which can cost more than a luxury car.

Travel Insurance Is Just for International Trips

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If you think domestic trips are safe, think again. Domestic trips can go sideways just as quickly as international ones. Plus, many health insurance plans get strange with coverage when people cross state lines.

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Pre-existing Conditions Are Never Covered

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Pre-existing conditions are, in fact, covered by insurance companies as long as travelers don’t wait until the last minute to buy coverage. The sweet spot is usually within 14-21 days of booking a trip.

Insurance Can Be Purchased Any Time Before The Trip

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Waiting to buy travel insurance until storm clouds appear on the horizon is like trying to buy car insurance after getting into a fender bender. Nobody wants to be that person. The best time to get coverage is right after booking the trip before anything can go wrong.

All Travel Insurance Policies Are Basically the Same

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Nope – travel insurance policies are like streaming services. They might look similar at first glance, but the details make all the difference.

Some cover extreme sports, while others won’t even touch a snorkel trip. The fine print matters more than anyone wants to admit.

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Travel Insurance Is Too Expensive

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Let’s break down the math: most policies cost about the same as a nice dinner out – around 4-10% of the trip cost. Compare that to the cost of rebooking an entire vacation or paying for emergency medical care abroad, and suddenly, it looks like a pretty sweet deal.

Airlines Must Reimburse Me for Cancelled Flights

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Airlines have more loopholes than a pretzel factory when it comes to reimbursements. Bad weather?

Mechanical issues? ‘Operational challenges?’

Good luck getting your money back without travel insurance. The airlines might offer a voucher and a sincere ‘sorry about that.’

Homeowner’s Insurance Covers Belongings Worldwide

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Sure, homeowner’s insurance might cover that stolen laptop – right after a massive deductible and a premium hike that lasts until retirement. Travel insurance typically handles these claims with way less drama and lower deductibles.

Plus, no lasting relationship damage with the home insurance company.

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Medicare Covers Me Everywhere

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Here’s a fun fact: Medicare stops working the second someone crosses the U.S. border. Even within the states, Medicare Advantage plans can get pretty picky about coverage.

Medical bills abroad can add up really fast.

Travel Insurance Won’t Cover Rental Car Damage

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Many travel insurance policies include better rental car coverage than those overpriced options at the rental counter. They often cover things rental companies conveniently forget to mention, like ‘loss of use’ fees when the car’s in the shop.

Trip Cancellation Coverage Isn’t Needed for Cheap Flights

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Those bargain flights might seem too cheap to insure, but what about the non- refundable hotel, the pre-paid tours, and that impossible-to-get restaurant reservation? Even budget trips usually involve several hundred bucks in bookings that can’t be refunded.

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Work-Related Cancellations Are Never Covered

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Modern travel insurance gets it – work happens. Many policies now cover situations like last-minute meetings or unexpected project deadlines. Just make sure to pick a policy that specifically mentions work-related stuff.

No one wants to argue with an insurance company about what counts as ‘work.’

Travel Insurance Doesn’t Cover Mental Health Issues

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Times have changed, and so has travel insurance. Many policies now treat mental health just like physical health – because it’s 2024, not 1924.

Getting coverage for mental health issues is doable with the right policy.

Claims Are Always Denied

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Insurance companies approve claims all the time – they just need proof that things went wrong. Keep those receipts, grab documentation when things go sideways, and follow the claim instructions.

It’s not exactly fun, but it beats paying out of pocket.

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Travel Insurance Is Only for Expensive Trips

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Even a cheap trip can lead to expensive problems. A simple medical emergency in the wrong place could cost more than a year’s worth of vacations.

Budget travelers often need insurance the most – because unexpected expenses hurt way more when working with a tight budget.

All Policies Cover COVID-19 Now

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COVID coverage is like phone service – coverage varies wildly depending on the provider. Some policies offer solid protection for COVID-related issues, while others treat it like it doesn’t exist.

Reading the COVID-19 details before buying is crucial.

Travel Smart

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Smart travelers know that good coverage isn’t about preventing disasters but about having a sound backup plan when things go bad. After all, as any seasoned traveler will tell you, the most costly travel insurance is the policy that wasn’t purchased when it was needed.

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