Hello Steve, I don’t think it’s right that in order to have the Pre-Existing Medical Conditions exclusion waiver and / or the Cancel For Any Reason coverage, the Travel Insurance company makes me insure all my non-refundable prepaid trip costs. If I want to self-insure any of my prepaid trip costs I should not be penalized for doing this. After all, it’s less risk to the Travel Insurance company. Doesn’t this make sense to you?
Can you kindly provide some more color behind why I have to insure the full cost of my trip to get the Waiver of the Pre-Existing Conditions Exclusion? It seems strange to insure the full cost of something I’d be getting a credit on if I cancelled my trip. For example, I bought a plane ticket a few years ago and had to cancel the trip. I paid the $100 fee and the airline gave me a non-transferable credit I had to use within a year. I booked something new and took the trip. I do not agree with how the travel insurance company is defining a trip cost.
We often get Trip Cost questions like these. I sympathize with the spirit and logic of the questions, but the reason companies require you to insure all your non-refundable prepaid trip costs to have the Pre-Existing Medical Conditions exclusion waiver and / or the Cancel For Any Reason coverage (and possibly other coverages) is that is their rule.
An insurance company has the right to determine how its policy works. As a consumer, you are not obligated to buy any specific insurance policy. However, if you want to insure against a specific risk with an insurance policy, you are obligated to accept all the policy wording.
Put another way, the insurance company, like any business, has a right to create a product it expects to make a profit on. No one is being forced to buy the policy being offered. It’s a free market and if the potential purchasers do not like the product terms being offered, they have the right too refuse to buy it.
If you want to learn more, read this to find out what the “Trip Cost” means: https://tripinsurancestore.com/what-is-your-trip-cost/
Here’s another tip: Don’t round your trip cost down to save money: https://tripinsurancestore.com/blog/dont-round-your-insured-trip-cost-down/
I hope this made sense. If you have any questions about travel insurance, email Steve (me), The Travel Insurance Guru, here.