A worry free vacation always requires some planning and travel insurance.
Although many of us have insurance to cover a variety of unforeseen circumstances, few if any of these policies are applicable when we travel overseas. This can be a discomforting scenario given that most travelers are more susceptible to the risks of illness, injury, and theft when on vacation in a foreign land. As a result, most tourists purchase some form of trip protection insurance that typically covers losses due to theft or medical issues. Unfortunately, as many travel insurance companies are unknown and require just a single payment, it becomes difficult to distinguish between the scammers and the legitimate agencies. Worse yet, this fraud often goes unreported, as every year thousands of individuals return from their trip healthy, never realizing they bought travel insurance from a fraudulent organization.
Travel Insurance Fraud
As travel is not a common endeavor, individuals may be unfamiliar with the companies who provide trip protection insurance. Checking with a recognized ratings organization such as AM Best will help you discern whether the travel insurance company you are doing business with is legitimate.
Unwarranted Coverage
Some travel insurance isn’t so fraudulent as it is unnecessary. Many companies will take on additional fees that cover you financially in the event of an airline crash. Not only is an airline crash extremely rare, the likelihood of surviving such an incident makes the insurance superfluous. Other times coverage for such events is given in place of legitimate concerns such as hospitalization and injury benefits. Before purchasing coverage, check to find out exactly what scenarios are covered by the trip insurance policy.
Comprehensive Medical Coverage
As is the case with medical coverage, any persons suffering from a pre-existing condition should verify the illness is covered by the travel insurance policy. Individuals should also be aware of particular clauses that may deny benefits for individuals who engage in extreme sports or risky activities abroad. These policies typically require a higher insurance payment, and individuals who participate in outdoor ventures should be wary of plans that offer cheap rates for comprehensive coverage.
