It isn’t always clear what you should do when your travel insurer refuses to pay your losses. Many people simply take the hit to their finances and move on.

But should they?

According to insurance bad faith attorney Matt Sharp, insurance companies don’t always act in the right way when dealing with travel customers. Even if the initial contract says that they should pay out, they don’t.

So, what can you do in a situation like this?

Start With An Explanation

The first step is to ask the insurance company for an explanation about why they didn’t pay the money after a claim. Usually, they’ll provide technicalities, based on what you’ve already told them, which is why it is essential to get your story straight with them before making a claim.

You should go through your policy thoroughly and ensure that all the facts match up. Then, you should compare what they say happened to the actual events to see if they align. If there’s anything out of place, it could mean that your cover is valid. For example, you should check flight policies.

Gather Supporting Documentation

The next step is to gather supporting documentation. You want medical records, travel itineraries, receipts, and other items/correspondence. This documentation is handy whenever you are planning on getting legal advice as it is something tangible that your lawyer can use.

This documentation should then be organized in a way that someone reading through it could understand and piece things together. If you want to add notes on separate pieces of paper, then that can also help.

Consider Mediation

Another option is to inquire about mediation. Sometimes, third parties can help customers and insurers come to a deal that’s acceptable to everyone, without the expense of taking the case to court.

Mediation and arbitration are processes that can go on for a while, but they can also be effective. Even a simple letter explaining the situation is often enough to get the insurer to agree to pay.

Consult A Lawyer

Of course, if things don’t go the right way, then the next alternative is to use a lawyer. Legal professionals can be extremely useful when it comes to insurance disputes and can advise you on the legal action you need to take.

Many refer to “bad faith” practices by insurers that are common across the industry. Here, insurance companies look for ways to avoid or evade paying out when there are legitimate reasons to do so, often hamstringing their clients with obscure or unfair terms.

These practices may seem above board, but attorneys can provide specific advice on whether they are legal and how courts will interpret insurance firm actions.

Share Your Experiences

You should also share your experiences of using an insurer, especially if they have been unfair to you. Describing what happened in public reviews can give other people a better impression of whether they should use a particular insurer or simply move on and find another.

Just remember to keep your statements factual. You don’t want Facebook or other platforms taking your comments down.

What To Do When Your Travel Insurer Won't Cover Your Losses