Planning a trip involves numerous considerations, and ensuring you’re adequately protected against the unexpected is paramount. Travel insurance offers a safety net, mitigating potential financial losses from unforeseen events. While a single comprehensive policy often suffices, circumstances may arise where purchasing multiple travel insurance policies, with different underwriters, becomes a viable strategy. Let’s delve into the world of dual coverage and explore when and why it might be beneficial.
Suitcase and passport with the text "Can I Buy More Than One Travel Insurance Policy for the Same Trip?"
Is It Possible to Have Multiple Travel Insurance Policies?
Yes, it is generally permissible and, in certain scenarios, even prudent to acquire multiple travel insurance plans for the same trip. This could be because the insurance benefits of your existing policy aren’t robust enough.
It can occur unintentionally—a traveler unknowingly buys an extra policy—or intentionally, when an individual believes that the insurance benefits provided by their current policy are insufficient for their needs. Before purchasing a second travel insurance plan, it’s important to be aware of a few key policy terms.
Key Considerations for Multiple Policies
Policies Must Be from Different Insurance Providers
If your existing policy’s travel insurance coverage doesn’t meet your requirements, you may think about buying an additional coverage plan for more security. But the separate policies must come from different travel insurance companies with different underwriters.
You might be able to make adjustments to your coverage period before you depart by contacting your current provider directly if you want more protection from them. Certain plans, for instance, might provide more coverage for particular benefits, such as higher limits for medical expenses, trip cancellation, or coverage that lets you cancel for any reason (CFAR). Some providers may let you add optional upgrades, such as rental car protection or adventure sports coverage, depending on your travel plans.
However, once your trip has started, modifications to an existing policy are usually not permitted. To fully understand your options, always read the terms and conditions of your provider before making any changes.
Claims Can Only Be Paid Out Once
A crucial aspect to remember when considering multiple travel insurance policies is that you cannot “double dip.” Purchasing multiple policies for the same trip does not entitle you to multiple payouts for the same insurance claim. If you file a claim under one plan due to a delay, you cannot legally file another claim for that delay under a different plan. Each claim is assessed and paid out only once, regardless of the number of policies you hold.
When Might You Need Dual Insurance?
There are several reasons why you might consider traveling with more than one trip plan. Here are some common scenarios where purchasing separate policies may be necessary:
To Increase Travel Insurance Coverage
If your existing policy lacks adequate medical coverage or trip cost protection, you may purchase additional coverage for your trip. In this situation, you have three choices: request a refund from your travel insurance provider, travel without adequate travel insurance coverage, or buy a separate policy that supplements your current plan.
This usually happens when you buy a plan from a travel insurance provider like a cruise line, airline, or tour operator. Although policies sold by these suppliers are often legitimate and convenient, they frequently offer low medical expense limits at high premiums.
If you believe you need to purchase an additional coverage plan, consider the following:
- Insurance Benefits: Ensure that the policy you are considering fills the coverage period gaps in your plan. Your travel insurance coverage should include benefits such as trip cancellation, travel delay, trip interruption, and baggage loss by the time you travel.
- Coverage Limits: The best travel insurance plans offer high coverage for common travel disruptions. If you’re traveling internationally, ensure you have at least $50,000 in medical expenses coverage and $100,000 in emergency evacuation coverage.
- Premiums: Only buy travel insurance if it fits your budget. To limit your spending on a second policy, focus only on the coverage your existing plan doesn’t provide.
Accidental Purchase of Multiple Plans
Mistakes can happen while arranging a trip, from booking flights for the wrong dates to reserving a hotel in Paris, TX, instead of Paris, France. Fortunately, traveling with too much travel insurance cover won’t make or break your trip.
Here are a few instances that could result in dual insurance:
- Forgetting You Already Have Coverage: Many travelers purchase travel insurance policies months in advance. There’s always a chance that your purchase slips your mind, and you buy a new policy without realizing you already have existing coverage.
- Covered Under Someone Else’s Plan: Single-trip policies can cover up to 10 travelers. Be sure to communicate with your travel party when buying travel insurance to ensure you don’t duplicate coverage.
- Already Covered by Annual Multi-Trip Travel Insurance: An annual travel insurance plan covers individuals for an entire year starting from the purchase date. However, you may travel a lot and need to build on the medical-only coverage you already have for a specific trip, so you look to purchase a single-trip policy, even if it means there would be some overlapping benefits for the coverage period.
- Have Existing Coverage Through a Credit Card: Many travel credit cards offer substantial insurance benefits. Before buying travel insurance, check whether your credit card already includes travel insurance coverage that meets your needs.
- Other Overlapping Policies: Travelers with life, car, or health insurance should review their coverage to determine whether separate policies are necessary.
What to Do If You Have Unnecessary Coverage
If you end up purchasing an insurance cover plan you don’t need, there’s a chance you can “return” the policy and get a complete reimbursement. Every travel insurance policy listed on Squaremouth has a money-back guarantee period. During this time frame, typically 10-14 days, you can cancel your policy and get 100% of your premium back.
Conclusion
While purchasing multiple travel insurance policies is possible, it’s crucial to understand the limitations and potential benefits. Evaluate your existing coverage, identify any gaps, and consider whether a supplementary policy from a different provider is necessary to achieve the desired level of protection. Remember that you cannot receive multiple payouts for the same claim, and carefully review policy terms before making any decisions.
