The Art of Stacking Travel Insurance

tacking travel insurance for full coverage

Table of Contents

• What is the Art of Stacking Policies?

• The Role of Credit Card Benefits

• How Business Travel Policies Can Help

• Combining Coverage for a Complete Safety Net

• Smart Strategies to Maximize Your Benefits

• FAQs

Travel insurance is often confusing, and many travelers are left with a "what if" feeling about coverage. While a single comprehensive insurance policy is a good start, a more sophisticated approach can also be done through what's referred to as "stacking" policies. Stacking policies isn't about buying two of the same plans, rather it is about using different sources of coverage in combination to create a truly strong safety net. 

What is the Art of Stacking Policies?

The art of stacking policies refers to the strategic combination of different types of insurance to achieve comprehensive coverage. This is a crucial distinction from "double-insuring," which can be a mistake. Instead of purchasing two separate, redundant policies, you combine existing coverage—from a credit card or employer—with a dedicated, standalone travel insurance plan to create a full safety net.

The Importance of Credit Card Rewards

Many premium credit cards include travel perks as one of many various benefits for the cardholder. This period can include complimentary trip cancellation coverage, lost or delayed baggage coverage, and travel rental car coverage. For many credit card benefits, it is important to note that the travel perks mentioned will be "secondary" coverage once your primary insurance benefits kick in. As great as these perks are to utilize for travel, the benefits of coverage limits are low and the list of exclusions is usually significant. 

How Business Travel Insurance Can Assist

When you travel for work, your employer may provide an additional corporate travel insurance policy, which will provide additional coverage of incidents while on a company trip (for example, medical expenses, lost property, or equipment). When you travel for personal reasons, a personal travel insurance policy can fill any gaps in coverage for a personal trip ( example, if you want to insure a non-work-related excursion while you were traveling; and/or you would like personal travel medical evacuation coverage that is higher than business travel policy.)

Combining Coverage for a Complete Safety Net

The trick to stacking is identifying where your current coverages might not be offering the value you thought they would. First, examine your credit card and corporate travel coverage. Then identify gaps in coverage...maybe you don't have emergency medical coverage with a high limit, or you have no "Cancel for Any Reason" coverage. Buy a travel insurance policy that fully covers the identified gaps in your coverages.

Smart Strategies to Maximize the Benefits

• Read the fine print: Know the terms, conditions and coverage limits of all your policies.

• No double dipping: You cannot submit for the same claim with two different carriers.

• Know your first policy: Determine where a claim will be filed first.

• Make the claims: If you need to make a claim, file it with your first policy first.

• Keep all documentation: Organize and keep receipts, itineraries, and policy documentation.

FAQ's

What does it mean to "stack" travel insurance? 

Stacking is strategically combining different types of insurance to provide yourself with complete coverage.

Is purchasing two separate travel insurance plans a good choice? 

No, it is not typically wise to have two policies, as it usually complicates or provides no additional benefit.

Is travel insurance coverage from my credit card considered actual travel insurance? 

Yes, but the coverage is often limited and simply supplemental to a specific travel insurance plan.

What is the difference between a primary and secondary policy?

A primary policy pays out first, while a secondary policy only pays out after another insurance has paid its part.

Can I stack my corporate travel policy with my individual policy? 

Yes, you can stack a personal travel policy with a corporate travel policy in order to fill coverage gaps and enhance overall coverage.

Stacking travel insurance is a smart way to make sure your trip is fully protected while avoiding purchasing duplicate coverage. The idea is to take advantage of the benefits you may already have covered by a credit card or your employer, and then add on a specific travel insurance plan you customize for your trip. By determining how to effectively stack insurance policies, you can find comfort in knowing your investment is fully protected.