Need to know the ins and outs of insurance coverage such as the difference between primary and secondary coverage and how you can tell which benefits are covered under which policy??
Here¡¯s a bit of information from Travel Insured International to help you decode that travel insurance plan:?
Primary Coverage
If you have primary coverage, claims are made with that provider first, regardless of whatever other insurance you may have.
The process is fairly straightforward:
Claim with the primary insurance provider, then...
Get your eligible costs reimbursed
Secondary Coverage
This coverage is sometimes referred to as Excess Coverage, if you have secondary coverage, claims are made through primary insurance providers first and there are a few more steps before reimbursement.
The process:
Claim with the primary insurance provider(s), then...
Get your eligible costs reimbursed, then...
Claim with the secondary insurance provider(s), then...
Get any remaining eligible costs reimbursed
Sometimes, you won't have primary coverage for a specific loss. If you have secondary coverage only, then you can claim with that insurance provider first.
Why This Matters for Travel Insurance
Understanding whether your travel insurance provides primary or secondary coverage is crucial when planning a trip. Primary travel insurance offers immediate protection without requiring you to file claims with other insurers first, which means faster reimbursement and less paperwork.
Many standard travel insurance policies offer secondary coverage, meaning they only pay after your other insurance (like your health insurance or homeowner's policy) has paid its share. This can delay reimbursement and complicate the claims process while traveling abroad.
Premium travel insurance plans and certain credit card travel benefits often provide primary coverage for trip cancellation, medical emergencies or lost luggage. This is particularly valuable when traveling internationally, where your domestic health insurance may offer limited or no coverage.
Always review your policy's declaration page or summary of benefits to identify which benefits are primary versus secondary. Some policies might offer primary coverage for certain benefits (like emergency medical) but secondary coverage for others (like baggage loss), so understanding these distinctions before your trip can save significant headaches later.
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