The maximum policy coverage refers to the limit of money that an insurance company will pay for the insured person when they have covered expenses.

Maximum policy coverage can be viewed two ways. One way is to place a maximum amount on each claim. This means that the insurance company will pay the expenses up until the set limit for each illness or accident. If you have an illness that requires medical treatment, you are allowed a limited amount of coverage. If later in your trip you have another medical issue, the maximum is reset.

The other way to apply maximum policy coverage is to place a total lifetime maximum on the policy. This means that for the trip the insurance has a cap on the amount of covered expenses that they will pay, whether it occurs in one accident or twenty-five. Choose a policy with reasonable maximum policy coverage amounts when shopping for travel insurance.

More Glossary Terms Explained here