10:13 AM Consumer Alert. | ||||
#travel insuranc # TRAVEL INSURANCE: Offers of Protection May Not Provide Insurance Coverage for Your Travel Investment If you had a recent trip cancelled due to snow or bad weather, you may be considering travel insurance for your spring getaway. But beware every offer you get for travel protection may not be travel insurance coverage. In a bad economy, insurance fraud can be costly to uninformed consumers hoping for better protection of their investment. So, before your buy travel protection, the National Association of Insurance Commissioners (NAIC) offers these tips and considerations you should review. Do I Need Travel Insurance? Travel insurance may not be appropriate for all trips and you may have some coverage from policies you already have such as a life, health or homeowners/renter s policy. Read your policy or speak with your insurance agent or company to find out more about what personal property and medical coverage you already have that could provide protection while you re traveling. Some credit card companies also offer travel insurance if you pay for the reservation with your card. When making your decision, check to see if your company offers those benefits. After finding out what coverage you already have, ask yourself the following questions to help decide if you will benefit from the added cost:
All companies and agents selling travel insurance must be licensed in the state where you are purchasing the policy. While considering whether you will benefit from the insurance, also stop to investigate where you are considering buying the policy. Marketing and sales material for fraudulent coverage is often difficult to distinguish from real insurance coverage. So, to protect yourself STOP before you write a check for the premium or sign the application and CALL your state insurance department to CONFIRM that the agent and company are licensed in your state. Many insurance departments also make this information available online. Find a link to your state insurance department here . What Are the Major Types of Travel Insurance? There are two main types of travel insurance. The first type, commonly called trip cancellation insurance, protects against the loss of non-refundable travel costs like airfare, hotel or tour expenses. So if you re making a deposit on a cruise or have non-refundable airline tickets, this would be the type of coverage you d consider. The other type of travel insurance offers protection against loss due to medical emergencies, damage to personal property or death that occurs while you are traveling. Trip Cancellation/Delay/Interruption Insurance Travel insurance generally covers a very specific list of reasons for cancellation, delay or interruption. Before you buy a policy make sure you ve reviewed these situations carefully.
Medical/Accidental Death Insurance When considering a medical or accidental death travel policy, ask about pre-existing conditions and age limits. How companies deal with pre-existing conditions can vary widely. Read the terms of coverage carefully if you have a pre-existing condition and be prepared to pay a higher premium to cover them. Some insurers also charge more for older travelers. American health insurance is generally not accepted outside of the United States. To find out more about the extent of your coverage, speak with your insurance agent or company before you leave home.
Baggage/Rental Car Damage Insurance Homeowners or renter s insurance may cover baggage or personal property damage when you re traveling and your auto insurance may extend to a rental car, but you should always check the terms of your current policy or ask your insurance agent or company.
Is a Waiver the Same as Insurance? Cruise and tour operators may offer Cancellation Waivers. Keep in mind that waivers are not insurance policies and are not regulated by the state, and therefore do not have the same consumer protection as a travel insurance policy. Read all of the restrictions before you buy a Cancellation Waiver. What Red Flags Should I Watch For? Here are some warnings against possible fraudulent policies:
Just remember, if it seems too good to be true, it probably is! What Should I Check Before I Buy?
More Information If you have questions about your insurance coverage, contact your state insurance department. Visit www.NAIC.org for contact information and Web links to your state insurance department. Get smart about your insurance needs! For more information about auto, home, life and health insurance options as well as tips for choosing the coverage that is right for you and your family visit www.InsureUonline.org .
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