Unraveling the complex language of travel insurance policies

Understanding Travel Insurance: Primary vs. Secondary Coverage

Travel insurance can be a lifesaver when unexpected events disrupt your trip. But with various types of coverage available, it's essential to understand the differences between primary and secondary (or excess) coverage.

Primary Coverage

Primary coverage is the first to pay when you file a claim. It handles your claims first and pays up to its coverage limits for eligible expenses. This advantageous feature can provide smoother claims processing and reduce out-of-pocket costs during your trip because the insurer deals directly with most fees upfront.

Secondary (Excess) Coverage

Secondary coverage, on the other hand, kicks in after the primary insurer has paid. It reimburses you for any leftover costs not covered by your primary insurance. This can include costs above your primary plan’s limits or out-of-network charges if your primary plan has limited coverage during travel.

In the context of travel health insurance, having primary coverage from your travel policy is often beneficial, especially if your regular health insurance has limited or no coverage outside your home region or country. Secondary travel insurance acts as a top-up to fill gaps but may involve waiting for your primary insurance to process claims first, which might delay reimbursement.

Other essential aspects of travel insurance include:

Exclusions: Situations, events, or activities not covered by the travel insurance plan.
Claims: The process of submitting proof of a covered event (like a medical emergency or trip delay) to an insurance provider for reimbursement.
Telemedicine: Access to virtual healthcare services with licensed doctors 24/7, including prescription services when legally permitted (for international trips from over 75 countries).
Pre-existing medical conditions: Any diagnosed conditions you had before purchasing travel insurance. To be covered for cancellations or interruptions due to a pre-existing condition, you typically need to buy the policy within 14 days of your first trip deposit and be medically fit to travel when you purchase the plan.
Trip inconveniences & snafus: Coverage for travelers who are inconvenienced during their trip due to flight delays, cancellations, security delays, or arriving late to their hotel.
Trip cancellation: Coverage for non-refundable travel expenses if the trip needs to be cancelled due to a covered reason, such as serious illness or injury, death of a covered person, unexpected natural disasters, or airline strikes.
Vacation rental damage protection: Coverage for any unintentional damage to a vacation rental (like an Airbnb or Vrbo) during the stay, such as broken furniture or stained carpets.
Rental car care: Coverage for car rental-related accident and theft expenses, such as coverage for collision, loss, and damage.
Emergency evacuation: Transportation to the nearest medical facility capable of treating a serious injury or illness.
Emergency medical expenses: Unexpected medical costs while traveling, including doctor visits, hospital stays, and prescription medications.
Emergency care coverage: Medical care that requires immediate assistance while traveling and is covered by the plan.
Adventure & extreme sports: An optional add-on that provides coverage for medical and transportation expenses in high-risk activities like skydiving, bungee jumping, motocross, or free diving.
Urgent care: Medical care that shouldn’t be postponed but doesn’t pose a life-threatening situation.
Trip interruption: Coverage for travelers who must unexpectedly cut their trip short or extend their trip due to unforeseen circumstances, such as an emergency at home or illness while abroad, changing their planned return date home.
Cancel for Any Reason (CFAR): A flexible add-on that allows trip cancellation up to 48 hours before departure for any reason.
Repatriation: Arrangement for travelers to get home for treatment if ill or injured, and transportation home if the insured passes away during the trip.
Whole-trip travel insurance: Comprehensive coverage that goes the distance to protect the entire trip, from the moment the traveler leaves home until they return, including coverage for the trip, health, and possessions.

Understanding the differences between primary and secondary coverage is crucial for travelers to make informed decisions about the type of coverage that best fits their travel needs. For more information about whole-trip protection, visit our website.

The smooth claims processing during your vacation could be ensured by primary travel insurance that handles the claims first, reducing out-of-pocket costs.
When filing a claim, secondary travel insurance comes into effect after the primary insurer has paid, reimbursing any leftover costs for expenses beyond the primary plan’s limits.
In the context of travel health insurance, having primary coverage from your travel policy is preferable when your regular insurance has limited or no coverage outside your home region or country.
It's also essential to be aware of exclusions in your travel insurance plan, as certain situations, events, or activities might not be covered.
Whole-trip travel insurance, providing coverage for the entire trip, from departure to return, can offer comprehensive protection for travel, health, and possessions, ensuring a comfortable and worry-free vacation experience.