Travel Insurance scams can be difficult to smell if you do not know the details. This is because insurance agents can trick you with their confident words. It is also because there are several kinds of Travel insurance contracts which you may buy without knowing their coverages. You may, in most cases, assume that they cover all your expenses in case of losses, but the truth may be very different from your assumptions.
So, how do you avoid buying a policy that cannot cover you? You need to check for the following:
1. Name of the policy: Crucial. Some agents may call it Travel Insurance. But it may actually be a Benefit Services contract or a Travel Protection plan. Check the name of the policy before you proceed further.
2. Regulated underwriter: Is the policy backed by a legitimate underwriter? The underwriters should be insured and financially healthy too. There are worldwide insurance rating agencies like Ambest.com which you can check to know the rating of your proposed agency.
3. Verify with other companies: Taking an insurance policy is like shopping. You need to check the other shops/companies. Review your other options and consult with someone who has already taken policies or has experience with such stuff. When you shop around, you can choose the best policy thatÂ covers all kinds of travel issues.
4. Licensed company/agent: Sometimes policies of even authorized companies maybe soldÂ by agents who are not licensed to sell them. In that case, you can call your state insurance department and confirm the legitimacy of the agent. Don’t do the paperwork or sign the check before this.
5. Read the fine print: This is most important golden rule. Read and re-read the policy and all its clauses. Find out if it covers all that you want it to cover. Never go by the agent’s words.
6. Learn about tricky clauses: If you are not an attorney, you cannot know about this. But travel insurance scammers are versed in this. They trick you with lengthy, confusing clauses. The biggest snag in this is, pre-existing medical conditions. They policy may not cover them or completely ignore them. If you have an attorney-friend, consult with him/her before you sign the contract.