Common Reasons for Travel Insurance Claim Denials and How to Avoid Them

When you buy travel insurance, you expect peace of mind. But reality shows that many travelers face disappointment: insurance companies deny thousands of claims each year due to preventable mistakes. In fact, according to the International Travel & Health Insurance Journal (ITIJ), roughly 18% of submitted travel insurance claims in Europe and North America were denied in 2024 — a number that has increased slightly compared to pre-pandemic years.

Understanding the most common reasons for travel insurance claim denials and learning how to avoid them is critical. Whether you’re a family on holiday, a business traveler, or a retiree exploring the world, knowing these pitfalls could save you thousands of dollars.

The Data: Travel Insurance Denial Trends in 2025

Claim denial rate: ITIJ’s 2025 survey shows 18–20% of claims are denied, mainly due to policy exclusions or incomplete documentation.
Top denial categories: Medical (45%), trip cancellation (30%), lost baggage (15%), other (10%).
Age factor: Travelers over 60 have a 25% higher chance of denial due to pre-existing condition issues.
Regional difference: Denials are more frequent in the U.S. and Canada compared to the EU, partly due to stricter claim evidence requirements.
Financial impact: Average denied claim value in 2024 was $1,850, rising to $2,100 in 2025 due to higher medical costs abroad.

(Source: ITIJ 2025, Allianz Partners Global Claims Report)

Why Claims Get Denied: A Deep Dive

1. Pre-Existing Medical Conditions

The #1 reason for denial. Many travelers assume mild conditions like high blood pressure or controlled diabetes don’t matter, but insurers often require disclosure.

Example: John, a 62-year-old from Canada, was denied reimbursement for hospital costs in Spain after a heart episode. The insurer argued it was linked to his undisclosed hypertension.

How to avoid: Always declare pre-existing conditions and, if needed, purchase a “pre-existing condition waiver” offered by companies like Allianz Travel Insurance.

2. Claiming for Non-Covered Activities

Policies often exclude high-risk activities unless you add a rider. Skiing, scuba diving, or even riding a motorbike may be denied under standard coverage.

How to avoid: Read exclusions carefully and add adventure-sport coverage if you plan such activities.

3. Incomplete or Late Documentation

Insurers demand proof: receipts, medical reports, police reports for theft. Missing paperwork is one of the most common technical reasons for denial.

How to avoid: Save every receipt, report incidents immediately, and submit claims within the policy deadline (usually 30–90 days).

4. Alcohol or Substance Involvement

If an accident occurs while under the influence of alcohol or drugs, insurers almost always deny the claim.

How to avoid: Stay aware — a single extra drink could make your medical claim ineligible.

5. Ignoring Policy Exclusions

Many policies exclude pandemics, natural disasters, or government advisories. Travelers ignoring official warnings often see claims rejected.

How to avoid: Check government advisories (e.g., Canada.ca Travel Advice) before booking.

6. Canceling for Non-Covered Reasons

Not all cancellations qualify. “Changed my mind” or “work got busy” are not valid reasons unless you purchased Cancel for Any Reason (CFAR) coverage.

Side-by-Side Table: Reasons for Denial vs. How to Prevent

Common Denial Reason	% of Denials (2024)	Example Scenario	How to Prevent
Pre-existing conditions	30%	Heart issue after undisclosed hypertension	Declare health conditions; buy waiver
Non-covered activity	20%	Injury while skiing	Add sports rider
Missing documentation	15%	Lost baggage claim without receipts	Keep receipts, police report
Alcohol/substance use	10%	Fall after drinking at resort	Avoid alcohol-related risks
Ignoring advisories	10%	Traveling despite “do not travel” warning	Check gov. advisories
Non-covered cancellation	15%	Cancel trip for work reasons	Buy CFAR add-on

Case Study: The Denied Claim That Could Have Been Avoided

Scenario:
Samantha, 35, from the U.S., booked a $3,200 trip to Thailand. She purchased standard travel insurance. Two weeks before departure, her employer demanded she attend an urgent project meeting, forcing her to cancel.

Her claim: Denied — “work obligations” not covered under trip cancellation.
Financial loss: Entire $3,200.
How to avoid: Purchasing CFAR coverage (+8–10% of trip cost) would have reimbursed her 70–75% of the expense.

Step-by-Step: How to Avoid Travel Insurance Claim Denials

Step 1: Disclose everything honestly
Declare all medical conditions and travel activities upfront.

Step 2: Read exclusions carefully
Don’t rely on assumptions — policies vary widely.

Step 3: Document everything
Police reports, hospital bills, airline delay notices — all matter.

Step 4: Submit on time
Don’t delay your claim; insurers often reject late filings.

Step 5: Upgrade wisely
If your trip is expensive, buy CFAR or activity riders.

Step 6: Check government advisories
Claims can be invalid if you travel against official warnings.

Step 7: Keep insurer contacts handy
Use the 24/7 helpline to confirm coverage before making expensive decisions abroad.

2025 Industry Trends and Analysis

Rising Denial Rates: With inflation and soaring medical costs, insurers scrutinize claims more strictly.
Digital Claims: Over 60% of claims are now processed digitally, reducing time but requiring precise uploads of receipts.
AI-supported verification: Many insurers use fraud-detection algorithms, which flag incomplete or inconsistent documentation.
CFAR Growth: Demand for Cancel for Any Reason add-ons has risen 22% year-on-year, reflecting travelers’ desire for flexibility.

FAQ: Avoiding Travel Insurance Denials

Q1: Can I appeal a denied claim?
Yes, most insurers have an appeal process. Provide additional documentation and a written explanation.

Q2: Does travel insurance cover COVID-19 in 2025?
Yes, most insurers now include COVID-related medical emergencies, but trip cancellations due to new outbreaks may still be excluded.

Q3: If my baggage is delayed, do I get reimbursed?
Only if the delay exceeds the policy’s minimum (usually 12–24 hours) and receipts for essentials are provided.

Q4: Can alcohol-related accidents ever be covered?
Almost never. Even moderate alcohol involvement can void claims.

Q5: Is it worth paying more for CFAR?
Yes, especially for expensive or uncertain trips. It offers flexibility not found in standard coverage.

Common Reasons for Travel Insurance Claim Denials and How to Avoid Them

Common Reasons for Travel Insurance Claim Denials and How to Avoid Them

The Data: Travel Insurance Denial Trends in 2025