DAN's New Annual Travel Insurance

[divengolf]

Recently DAN sent out emails announcing their new Annual Travel Insurance offering called Travel Protection with three levels of insurance. Upon review, DAN's new policy looked a lot like a Travelguard product called Business Traveler (BT) that I have carried for years. With a little research, I found that both plans are offered by Travelguard, are underwritten by the same company, and are very similar. There are some differences in coverage, but many similarities. I carried the BT policy mainly for medical expenses overseas with a $50,000 limit (Dan's limit is $10,000). Plus both BT and DAN's policy provide $5,000 of trip cancelation coverage. Above that level I have always self-insured anyway.

I highlight this because my BT costs me about $450/yr and the DAN quote is $634/yr per their web site. So, IMO, you're paying DAN about $200/yr more for very similar coverage and substantrially less medical coverage which is the main reason that I'd consider this type of policy in the first place.

So, before you jump on the DAN bandwagon, do some research.

Disclaimer: I am not in the insurance business and did not do an exhaustive comparison of the policies. I just looked at the aspects that were important to me. I carry the DAN Preferred Diver Insurance for about $100/yr as many divers do. I also carry a USAA all risk, zero deductible, personal property policy for all my dive and camera equipment, so the lost baggage coverage isn't important to me. Plus the rental car coverage on the DAN policy is covered under the USAA Auto policy.

What do you insurance experts think of DAN's new offering?

 

[DandyDon]

DAN filled a need when they launched their dive insurance and I wouldn't go anywhere else, and they do a lot of good as a research organization.

All of their insurance plans are underwritten by outside companies tho, with a variety offered after members requested them as it is a membership organization - but I've never been impressed with any of the others.

 

[Lorenzoid]

I, too, have been curious about the new DAN Annual Travel Insurance. I've been a DAN member with Preferred level insurance for many years. I'm trying to figure out what additional benefits the DAN Annual Travel Insurance might provide. I have from time to time bought travel insurance for specific trips, though usually not scuba-related trips.

From what I understand from the information online and in an article in Alert Diver (Winter 2013), DAN Annual Travel Insurance provides this (and perhaps more):

(1) compensation for trip cancellation and interruption

(2) medical expenses

(3) baggage and equipment loss or damage

(4) rental car CDW

Items (1) and (3) would seem to be the same as ordinary per-trip travel insurance that you could purchase through any travel insurance company, such as Travelguard. I've heard people say that they believe their homeowner's insurance covers item (3) (baggage and equipment loss or damage).

I'm confused about item (2) because I thought regular DAN insurance covers that. From what I've read, regular DAN insurance even covers medical expenses arising from non-diving-related activities while traveling. If the "DAN was there for me" stories in Alert Diver are any indication, DAN insurance covers an amazing array of expenses. If my understanding is correct, then I wouldn't achieve any advantage with regard to medical insurance by buying DAN Annual Travel Insurance. Does anyone know if this is correct?

CDW is generally covered by booking a rental car with a credit card that provides this benefit, so I don't see item (4) being a big deal.

So is it reasonable to say that the main benefit that DAN Annual Travel Insurance would provide above and beyond regular DAN insurance would be compensation for trip cancellation and interruption? If so, it would be considerably less expensive to just buy insurance from Travelguard or whomever for each trip. The article in Alert Diver is candid about this: "We came up with a plan that could price at just 50 percent more than a similar per-trip plan, and it would cover an unlimited number of trips per year." So it sounds like for those of us who already have regular DAN insurance, the DAN Annual Travel Insurance offers little for us that per-trip insurance does not, and that we would just be paying for the convenience of not having to spend 10 minutes on the Internet buying trip cancellation and interruption insurance for every trip.

Also, from what I understand, most of those trip cancellation and interruption policies are pretty limited in the circumstances that would trigger reimbursement.

 

[DandyDon]

I'm confused about item (2) because I thought regular DAN insurance covers that. From what I've read, regular DAN insurance even covers medical expenses arising from non-diving-related activities while traveling. If the "DAN was there for me" stories in Alert Diver are any indication, DAN insurance covers an amazing array of expenses. If my understanding is correct, then I wouldn't achieve any advantage with regard to medical insurance by buying DAN Annual Travel Insurance. Does anyone know if this is correct?

Nope, not correct at all. As long as you stay on the Preferred Dive Insurance, you do get $10,000 coverage for "For eligible charges for treatment of non-diving accidents outside home country. $250 deductible" however (1) Non-accident medical expenses are not covered, and (2) $10,000 ain't much. You may not think that you're at risk for non-accident medical but we all are. Your regular medical coverage might cover you out of the US, but mine does not - and to me it's the most important aspect in my Trip Insurance shopping.

Do always keep in mind that you qualify for emergency medical evacuation as a DAN member, not pat of insurance, which absolutely must be arranged thru them.

CDW is generally covered by booking a rental car with a credit card that provides this benefit, so I don't see item (4) being a big deal.

Well, your credit card may well cover you if you decline insurance with the rental company, but I always take it. Otherwise, I would have to pay all losses they claim then and there, then file reimbursement claims when I get home. So (4) does not appeal to me either, but for different reasons. If I have a wreck or other problems, I want local coverage and local insurance agents taking care of me.

 

[Lorenzoid]

Nope, not correct at all. As long as you stay on the Preferred Dive Insurance, you do get $10,000 coverage for "For eligible charges for treatment of non-diving accidents outside home country. $250 deductible" however (1) Non-accident medical expenses are not covered, and (2) $10,000 ain't much. You may not think that you're at risk for non-accident medical but we all are. Your regular medical coverage might cover you out of the US, but mine does not - and to me it's the most important aspect in my Trip Insurance shopping.

Do always keep in mind that you qualify for emergency medical evacuation as a DAN member, not pat of insurance, which absolutely must be arranged thru them.

I see. So you're saying regular DAN insurance covers ACCIDENTS only, while DAN Annual Travel Insurance covers a wider range of medical issues. Now that I am taking another look at it, I see that regular DAN (Preferred) insurance covers $10,000 of non-dive-related medical ACCIDENT expenses, while DAN Annual Travel Insurance covers $10,000 of expenses but does not limit coverage to "accidents."

My medical insurance does not cover me on extended trips outside the US.

 

[Cert1967]

As with any contract you need to read it - not just the promotional literature. While the glossy advertising material may hit a few high points it is the actual language of the contract that defines the obligations of both parties.

I would read carefully the definitions section of the policy as this defines what each term in the policy encompasses.

 

[DandyDon]

I see. So you're saying regular DAN insurance covers ACCIDENTS only, while DAN Annual Travel Insurance covers a wider range of medical issues. Now that I am taking another look at it, I see that regular DAN (Preferred) insurance covers $10,000 of non-dive-related medical ACCIDENT expenses, while DAN Annual Travel Insurance covers $10,000 of expenses but does not limit coverage to "accidents."

My medical insurance does not cover me on extended trips outside the US.

Yes, when referencing DAN Preferred Dive insurance. The term DAN insurance in itself is non-descriptive.

I don't remember what medical coverage DAN Annual Travel Insurance offers, but if it's only $10,000 - it's not worth considering. I like $100,000 along with DAN's Travelers Assist medical evacuation.

 

[Lorenzoid]

Yes, when referencing DAN Preferred Dive insurance. The term DAN insurance in itself is non-descriptive.

I don't remember what medical coverage DAN Annual Travel Insurance offers, but if it's only $10,000 - it's not worth considering. I like $100,000 along with DAN's Travelers Assist medical evacuation.

Yeah, Preferred-level DAN accident (I suppose "accident" is more descriptive than "regular") insurance is a lifetime benefit of $10,000 for non-dive-related accidents. The Master and Standard levels don't have a non-dive-related accident benefit at all.

What is the "Travelers Assist medical evacuation" plan you mention? I don't see that on the DAN web site.

Also, when you mention $100,000 medical coverage, are you referring to DAN Elite-level travel insurance? Seems that could cost in the neighborhood of $250-$500 per trip for big dive trips abroad. And Basic-level and Premium-level DAN travel insurance aren't much less expensive than Elite, offering $25,000 medical coverage.

I once bought medical evacuation insurance for a long trip through Southeast Asia about which I was a little paranoid, but it was somewhat expensive if I recall and provided only that one benefit--no general medical coverage at all. Ironically I ended up having a medical issue and going to a clinic in Hanoi, where I believe I was charged something like $50 and was put at the head of the line and given what appeared to be VIP treatment.

Sure would be nice if DAN or any other company would let you to put together what you needed a la carte. It's hard to compare different plans that include a bunch of secondary benefits I don't need. I think $10,000 general medical coverage would go a long way (though it is a LIFETIME benefit, not per occurrence) in many foreign healthcare systems, but the major expense I would be concerned with would be emergency evacuation to the US if that became advisable. That was my thinking for the trip I mentioned. I figured I would pay minor medical expenses out of pocket and just buy evacuation insurance in case of something catastrophic in a remote area. A number of years having passed since that trip, I'm not sure my current thinking is the same, though.

---------- Post added June 26th, 2013 at 05:59 PM ----------

p.s. It just occurred to me that the "lifetime" medical benefit of $10,000 for "annual" travel insurance probably means that the "lifetime" is one year. Buy a new policy next year, and you get $10,000 coverage again.

 

[DandyDon]

Yeah, Preferred-level DAN accident (I suppose "accident" is more descriptive than "regular") insurance is a lifetime benefit of $10,000 for non-dive-related accidents. The Master and Standard levels don't have a non-dive-related accident benefit at all.

Well, you referenced "regular DAN insurance" and to avoid possible confusion I clarified that you are talking about Dan dive insurance, preferred level. They have all kinds of insurance. Their dive insurance is most important to many of us, but still - be specific when discussing.

What is the "Travelers Assist medical evacuation" plan you mention? I don't see that on the DAN web site.

You're a member of DAN right? You have to be to have their dive insurance, and included in that membership - but too often forgotten - is DAN's travel assistance plan, which does include $100,000 for an emergency evacuation, or medically necessary repatriation, and more. $100,000 is not over kill. A private, medically equipped plane sent to retrieve you, flying at low altitude on return, can be pricey - but I've known two who would have died without it. One plane had to fly around hurricane Dean both ways. See Divers Alert Network Well, that link goes to that specific page.

If I have problems traveling, anything significant, I am going to call DAN and ask what they can do for me. I did once when I was on Roatan the week of 9-11-01 and the airlines were stopped. They could not do anything, but I have called them for advice other times.

Also, when you mention $100,000 medical coverage, are you referring to DAN Elite-level travel insurance? Seems that can cost in the neighborhood of $500 per trip depending on where you're going. And Basic-level and Premium-level DAN travel insurance aren't much less expensive than Elite, offering $25,000 medical coverage.

No, I get my trip insurance from Travel Safe, and don't travel enough for an annual plan.

I once bought medical evacuation insurance for a long trip through Southeast Asia about which I was a little paranoid, but it was somewhat expensive if I recall and provided only that one benefit--no general medical coverage at all. Ironically I ended up having a medical issue and going to a clinic in Hanoi, where I believe I was charged something like $50 and was put at the head of the line and given what appeared to be VIP treatment.

Sure would be nice if DAN or any other company would let you to put together what you needed a la carte. It's hard to compare different plans that include a bunch of secondary benefits I don't need. I think $10,000 general medical coverage would go a long way (though it is a LIFETIME benefit, not per occurrence) in many foreign healthcare systems, but the major expense I would be concerned with would be emergency evacuation to the US if that became advisable. That was my thinking for the trip I mentioned. I figured I would pay minor medical expenses out of pocket and just buy evacuation insurance in case of something catastrophic in a remote area. A number of years having passed since that trip, I'm not sure my current thinking is the same, though.

It depends on what medical expenses you incur. I've known people in the 30s with stroke, cardiac events, and more.

 

[Lorenzoid]

Thanks, Don. I had forgotten that DAN membership alone is enough to entitle one to the $100,000 evacuation benefit. And it appears to cover any medical emergency, not just "accidents." That's a HUGE benefit of DAN membership.

Now all that is interesting, since DAN Preferred-level accident insurance covers $10,000 in non-dive-related ACCIDENT expenses but does not appear to cover non-accident-related medical expenses at all. So if I were to have a medical emergency that was not "accident"-related, a literal reading of this (not that I have yet read the original contract documents) is that DAN would cover evacuation but no other medical expenses. (I almost wonder how that is possible--they might not pay for the local doctors who tend to you between the time of the incident and the time they evacuate you?)

Anyway, in view of this, I agree with you that it would be prudent to buy some additional insurance that covers general medical (e.g., non-"accident") issues abroad. However, it seems that DAN Annual Travel Insurance would be an inefficient use of my money if that's my main objective.