Travel Insurance Fraud
Travel insurance is supposed to provide coverage in many different situations. Some of the common types of insurance policies marketed to travelers include:
- Trip cancellation insurance
- Insurance to provide coverage in case of rental car damage
- Coverage in case of accidents while on a trip
- Insurance that provides help coordinating medical, legal, and travel assistance services
- Insurance that reimburses you for lost luggage
- Trip delay coverage
No matter what type of travel insurance you purchase, you have the right to expect that the policy will pay out when a covered event occurs. Unfortunately, this fails to happen in many situations. Travel insurers are notorious for taking premiums and finding excuses to deny claims or pay out less than policyholders should receive. You’ll be out your premiums and the value of your losses if your insurer does not pay, so you should consult with a California financial elder abuse attorney if you are victimized.
While seniors are a common target for travel insurance scams because many seniors have health concerns that could affect their trips, anyone of any age could be vulnerable to fraud by an insurer and could take legal action to get help when a policy does not pay.
Travel Insurance Fraud Scams
Some of the popular providers of travel insurance policies include:
- American Express
- APRIL Group
- AXA Assistance
- CSA Travel Protection
- Global Alert
- HTH Worldwide
- IMT Services
- John Hancock
- MH Ross
- Seven Corners
- Travel Insurance Coordinators (TIC)
- Travel Insured
Not every policy from every company is a fraudulent one, and some travel insurers do actually pay claims as promised. A great many insurers, however, have a bad reputation for not paying for covered claims when policyholders have purchased coverage.
Many travel insurance providers will convince travel agents or trusted sellers of trips and excursions to get buyers to purchase insurance policies. The average commission for selling a travel insurance policy can start at around 40 percent and can go up from there; so, there is tremendous incentive to heavily market these policies.
Some travel agents are also concerned that they could end up being liable if something goes wrong. That said, they try to convince you to buy a travel insurance policy so you are covered by the insurer instead of going after the agent. Travel agents may not be aware that the policies they market and sell won’t pay out and they don’t know that they may be convincing consumers to buy into a scam.
Making a Case for Travel Insurance Fraud
If you believe that you should have had a covered claim and your travel insurer has refused to pay it as required by your policy, you may have the right to pursue legal action to recover for your losses. An attorney can offer invaluable assistance in determining if you were the victim of fraud and can help you pursue a case to hold the insurer accountable for your losses. Call Evans Law Firm, Inc. today to learn more. We can be reached by phone at 415-441-8669 or toll free at 888-503-8267.