I have been a proponent of purchasing travel insurance (under the right circumstances) since I started my blog. I have posted articles about scam insurers and consider it my duty to be a watchdog of sorts for you, my valued reader. I like to pass along advice about what 'protection' to purchase and from who (reputable insurers) so that my credibility is strong. So I admit that I was unaware until I read this article recently that there is a difference between the word protection and insurance in the travel insurance arena.
The premise for the article was a person who took a cruise and had signed up for what she thought was travel insurance in case she got sick on board. Sure enough she did and the doctor/sick bay on the cruise charged her $675 for attention and medications. (Another thing I learned! It COSTS to go to the shipboard doctor!). She came home, filed an insurance claim and here is where the story really deteriorates.
What she (and I and perhaps few of us know) was that she had signed up with a fly by night company that was NOT an insurance company. What they were providing was travel protection and while the output should be somewhat the same, the problem is 'protection' is not regulated like insurance is so if the company refuses to pay, you are pretty much out of luck!
You can read the ending for yourself but it reminds us to be aware of certain things when looking for travel insurance. 1) Deal with regulated, well-known insurers who have been in the business. Like American Express or AIG. 2) Read the fine print and make sure they are selling insurance and not protection. 3) Realize you are going to be reimbursed at some point and are not purchasing health insurance where 'they' are going to "bill the insurer" for you! You will HAVE to pay up front and if you had an accident in Europe say, it could cost thousands out of your pocket until you were reimbursed.
Finally, unless you have health insurance that covers you, keep in mind that travel insurance isn't just for lost bags and cancelled flights - something as simple as picking up a virus on a cruise and visiting the cruise lines sick bay can and will cost you just like seeing a doctor in their office. So if you think "I won't get ill onboard and even if i do, they'll take care of me", that is not true. You may be in the prime of your life but visiting strange new places and eating on the street in an exotic locale is a recipe for a tummy ache and anything more serious could cost hundreds of dollars. So spend the extra few $ to get coverage for such illnesses and rest easier on your trip.
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