Why Trip Insurance Limits Trip Cancellation Coverage

by Steve Dasseos, The Trip Insurance Guru on April 12, 2011

Hi Steve, Thanks for your call yesterday. Referring to the schedule of benefits, why does the pre-existing medical condition exclusion waiver state coverage is up to a maximum of the first $50,000 of “Trip Cost”? Does that only refer to trip cancellation etc. Our trip will only cost $1,095 each. Where does it say they cover Medical Expenses? Why does it mention the words “Trip Cost” at all if the policy limit is $50,000? Argghh – why can’t I get my head around this? Liz

Hi Liz,

The $50,000 trip cost limit means the most this plan will reimburse you for if you cancel your trip, due to a pre-existing medical condition, is $50,000 of prepaid non-refundable trip costs.

This particular limit doesn’t affect you because, as you stated, your trip will only cost $1,095 each which is well below the $50,000 trip cost limit.

All travel insurance plans have a maximum limit they will pay when a pre-existing medical condition causes a trip cancellation. My plan limits are higher than most and range from $15,000 to $100,000 trip cost limits.

The reason the trip cost limits exist is because covering pre-existing medical conditions are already a greater risk to the travel insurance policy for no additional premium. The last thing they want is to have to pay a huge trip cancellation claim because one of their customers’ bunions gets infected and their doctor advises them to cancel their $65,450 trip.

In case you’re wondering if anyone ever takes trips that cost more than $50,000 a person, the answer is “yes”. TripInsuranceStore.com is the “go to” trip insurance website for travelers taking expensive trips.

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