Insurance coverage is intended to protect us from uncertainty — we have health insurance to cover unexpected medical costs and needs, life insurance to provide our loved ones with financial support once we die, car insurance to cover accident costs, and so on. Insurance coverage is protection against the issues we can’t plan for in life. That would lead you to expect that when you travel, you can protect your expenses and your trip details from unknown factors like weather, sickness or major world events that may prevent you from completing your trip as planned. However, purchasing travel insurance rarely pays off and can even end up costing you more than your trip.
Insurance providers often target people who buy expensive trips — cruises, round-trip flights to exotic destinations or travel packages that include transportation and hotel rooms. These trips often cost a substantial amount of money up front and usually have to be booked in advance; so insurers have a high probability of making a profit either way.
How Cancelled Trip Insurance Works
Suppose you’re booked for your dream vacation: warm sands, pina coladas, ukulele music and the crashing surf. Then suppose you break your leg. Cancelled trip insurance is supposed to provide some measure of recompense for missing out on the Big Island. But you, instead, spend your week of recuperation fighting to get your policy paid out.
Travel insurers are notoriously bad about paying their dues and seem content to let customers suffer. They have even been known to tell customers that some medical problems aren’t serious enough to warrant canceling a trip. Sometimes, they limit themselves to only paying out a small portion of what a traveler claims. Either way, the agency makes off with the premium and does not provide the extensive protection promised to their clients.
For this reason, trip cancellation protection is not always the best option, especially if you are purchasing it through a third party. The agency or company offering the policy could be promising a great deal or a value price, but in reality, it may be charging more than is necessary for your protection and pocketing the excess.
Policy providers may also exaggerate or lie about the scope of the protection you have purchased. For example, if you purchase full trip protection at a set price for your flight, hotel room and rental car, but then only receive half your reimbursement or a smaller amount on your refund, you could be a victim of fraud, swindled by hidden fees or charges that were not disclosed up front.
Read more about Travel Insurance Fraud
Call the Evans Law Firm
Recently, the Evans Law Firm, Inc. has launched investigations into several potentially fraudulent travel insurance policies on behalf of their clients. For more information, or to file a claim on your fraudulent travel protection, contact a California travel insurance attorneys at our firm today at 415-441-8669, or by email at at firstname.lastname@example.org.