We have written a considerable amount about travel insurance on this site. But the game has changed since we last wrote about the topic and it’s high time for an update.
It used to be as simple as comparing costs of providers, finding a suitable policy and clicking on “buy now.” While it is still just as easy to purchase insurance, understanding the terms and conditions and the ways in which insurance companies can collect data about you, has taken on a new importance.
This mainly revolves around the ability of insurance companies to use our devices and technology to track our location, our activities and our health. It is no secret that insurance companies are collecting massive amounts of data that informs their premiums and deductibles, but as a traveler there are other things to consider if you are going to file a claim.
Let’s say that you get into accident. Whether the accident is your fault or not (and whether you are covered or not for that particular accident) is one thing. However, keep in mind that insurance companies are often diligent in investigating claims, especially ones of substantial monetary value. There is a good chance that the insurance company will be able to determine where you were and in what circumstances.
The data collection is only going to progress from where we are currently. In the coming years, companies will likely be able to determine your sobriety, your GPS, your speed of movement and possibly other factors that could contribute to whether or not you are covered. This is alarming in many respects. At the same time, it reinforces the need to read the fine print of your policy and to take any decision about a carrier very seriously.
Travel and Health insurance can be more complicated than other forms of insurance. For example, if you have a look at these Income Protection Insurance FAQs, you will see that the conditions of filing a claim with these types of policies are much different than what you have to deal with when you are making a claim from the road. Whether you are traveling domestically or abroad, there are often myriad factors that go into selecting a policy as well as filing a claim.
Travel policies, especially those involving health, are a minefield of discouraging features often buried in pages of fine print. I learned this from my first trip abroad to West Africa in 2005 and then later to South America in 2007. Even within that mere two-year time span there were serious changes to the industry.
Fortunately, there are still decent carriers out there, and it is often worth paying a bit extra for a premium if you know that there will be more support and follow through on claims in the end. We have made recommendations on this site based on personal experience after filing claims with different carriers.
Please feel free to follow up in the comments with your thoughts on this new world of insurance.
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