Skift Take

It's rarely worth it for small journeys, but big trips and specialized tours can take advantage of cutome packages to protect major investments.

After a nasty storm ripped through the East Coast on the busiest travel day of the year, you might think that buying travel insurance for holiday travel would be a no-brainer.

Not so much. The 114-year-old National Consumers League concluded recently that travel insurance is usually a bad deal because most policies are riddled with exceptions that allow insurance companies to reject claims for payoffs.

Most insurance companies won’t disclose their track record for paying out claims, making it nearly impossible to judge whether insurance is worth the money, the league points out.

“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,” said Sally Greenberg, executive director of the National Consumers League.

The most common exceptions used by insurance companies to reject your payout are illnesses involving a preexisting medical condition, pregnancy or childbirth, losing a job or having a business meeting canceled, according to the league. Some policies won’t pay out even if your trip is canceled because of nuclear contamination or terrorist attacks.

The U.S. Travel Insurance Assn. disagreed with the consumer league’s conclusion, saying policies that are rife with exceptions are usually less expensive than more comprehensive policies with fewer exceptions.

Still, association spokeswoman Linda Kundell added: “There is no insurance that covers everything under the sun.”

(c)2013 the Los Angeles Times


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Tags: consumers, insurance

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