Travel Insurance Hardly Worth It: Consumer Group
It's easy for firms to reject claims: National Consumers League
By Matt Cantor, Newser User
Posted Dec 3, 2013 2:30 PM CST
Travel insurance won't help you much, says a consumer group.   (Shutterstock)

(Newser) – Traveling for the holidays? You might want to think twice before buying that travel insurance policy, says the National Consumers League. The group finds that insurers have little trouble saying no to claims, thanks to the plentiful exceptions in their policies, the Los Angeles Times reports. "The unfortunate reality is that these protection policies bring in big bucks for the airlines each year but offer very little real value for customers," says the organization's executive director.

It's hard to tell how effective policies are because companies rarely release payout records. Among the exceptions: Illness tied to a preexisting condition, pregnancy or giving birth, job loss, or the cancellation of a meeting. Even nuclear contamination and terrorist attacks are, for some companies, grounds to avoid payouts, the league says. Replies a trade group: "There is no insurance that covers everything under the sun," and policies with lots of exceptions are cheaper.

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Dec 13, 2013 11:23 AM CST
For years, while our aging parents were still alive, we would take the trip cancellation insurance. The insurance often cost $ 500 or more per person and I would wrestle with the decision every time. Over the years of travel it seems we had to cancel two trips for which the insurance paid. In one case paying about $ 15,000 for each of us. I also use a credit card for purchasing the airline tickets and hotels so that often help with them.. I never kept track of the money I spent for the insurances compared with what I got back but I "think" I might have come out ahead... Now that the parents are gone we no longer buy the insurance.
Ezekiel 25:17
Dec 4, 2013 11:04 AM CST
I do a travel insurance only because it covers a rental car. It runs $8 per day and has a $50k maximum payout. I also use a company credit card to pay for all travel. That card has its own guarantee that I've had to use on occasion such as a hotel being slow to remove an incidental hold. That's mostly for government travel. The government travel office will handle the ticketing and billeting but you still have to give them a credit card at check in. They swipe it for $150. I've had one incident where it took them forever to remove the hold. The credit card company removed it when complaints to the hotel didn't work. I told the hotel that in six months, you would think they figured out by now if any other charges had occurred.
Dec 3, 2013 8:31 PM CST
The only insurance I worry about when I travel is health coverage.