Despite the thousands of Canadians it helps every year, travel insurance is an acknowledged necessity, yet seemingly shrouded in myth.
TravelPulse Canada asked Dan Keon, VP Market Management for Allianz Global Assistance, about the myths in travel insurance and for some tips to help agents ensure their clients are making an informed choice.
Busted: “Insurance companies exist in order to help mitigate unforeseen and sudden events, with a view to making a client financially whole again,” says Keon. “Any insurance company’s reputation rests on its ability to make good on its promise to honour the premiums it receives.”
“Travellers are encouraged to carefully read their travel insurance policy to understand the benefits, exclusions and limitations, as travel insurance does not cover everything. When travellers have questions, their insurance advisor is the reliable source and trusted professional to provide clarification.”
Myth: Credit cards provide sufficient travel insurance coverage
Busted: “Many credit cards do not cover everything a client may require, such as coverage for specific types of emergencies or Trip Cancellation and Interruption coverage. Credit cards and homeowner’s policies may also provide limited coverage, carry stricter exclusions or include higher deductibles. Depending on the type of card the client carries, available benefits may also vary.”
“Travellers might not be aware of the variation between travel insurance options, which are not all created equally. It’s critical that travellers verify and fully understand the benefits they believe to be included on their credit card with their card issuer before departure, and speak to their insurance advisor to confirm they have appropriate coverage in place for their trip.”
Myth: It’s cheaper to buy travel insurance online
Busted: “According to a recent study by the Conference Board of Canada, a quarter of clients who purchase travel insurance through a broker do so online, whereas the majority opt to purchase in person or by phone. While clients may turn to online resources to research travel insurance offerings, the comparisons they make aren’t always apples to apples. Price can be one important factor for comparison, but the underlying benefits, coverages, exclusions and limitations may vary significantly.”
“The reality is that insurance advisors have direct access to a broad range of products and options on behalf of the traveller that provide comprehensive coverage at a reasonable price, and deliver the value a traveller expects. Working with a licensed insurance advisor to select a plan provides added confidence for travellers that they’ll have the right coverage in place if and when they need it most.”
Source: TravelPulse Canada