Learn How To Spot And Avoid Travel Insurance Scams

Travel insurance is worth having while planning a trip. Unfortunately, travel insurance scams and frauds are rising, affecting many people.

Travel insurance scammers sell invalid policies to defraud victims. There are several travel insurance frauds. Someone may try to sell you phony insurance from a bogus company, or you may assume you acquired insurance from a genuine travel insurance agent. You give them the money, but they never register you for travel insurance and keep it.

Travel Insurance Scam: What to Look for?

Knowing what types of several insurance scams are out there makes it easy to spot them and stay clear. So, here are some of the most common travel insurance scams:

• “Ghost-Broker.”
• Fake policies.
• Fake add-ons.
• Phishing/spoofing/spam.

“Ghost-Broker” Insurance Scam

A “ghost-broker” is an insurance scam in which people appear as licensed insurance brokers and offer insurance products for a respected organization. Their employer may exist, but they have no connection to the insurer. They may create a corporation from scratch. Either way, “ghost-brokers” will present fake credentials and policy information.

In this fraud, “ghost” agents promote their work and contact clients on social media. Clients pay for travel insurance, but the agent keeps the money without buying it. When clients submit insurance claims, they learn that they don’t have proper insurance with that company or that the provider doesn’t exist, while the ghost agent has fled with their money.

Fake Policies Scam

Travel insurance fraud The entire policy, company, and agent are manufactured by one or more people. These people will fake licenses and underwriters to make their insurance business seem credible. Therefore, consumers will pay for a trip health insurance plan just to find out it is invalid and the insurance business does not exist, leaving them uninsured and with large losses or incidents to cover.

Fake Add-ons Scam

Travel insurance scams include “agents” selling coverage plans with add-ons as main policies. For instance, genuine travel insurance firms offer “cancel for no reason”. This normally comes as an add-on to basic travel insurance and is limited by the cause for cancellation.

If a provider offers a “cancel for no reason” policy for all trip cancellations, beware and think twice before buying. Since most travel insurance companies did not cover pandemic-related cancellations, this scam has become more prevalent.

Phishing Scams

These scams typically take the form of emails or phone calls from individuals offering to offer discounts or better coverage than you now have. The emails, phone conversations, and material you receive are all created to make it appear that they are reputable travel insurance companies. They will request your personal information; do not provide any information to these emails or messages. Check to see if the email is from a legitimate insurance firm.

Tips to Avoid Travel Insurance Scams

Knowing what types of scams there are is not enough to avoid travel insurance schemes; you still need to keep in mind some helpful tips:

• Check the insurance company: First, verify the insurance firm and agent offering you the insurance to avoid travel insurance scams. You can check an insurance company’s ratings on the A.M. Best Website, which you can access here. You can check the company’s license with your country’s insurance department. Imagine you’re in the US. If so, visit the U.S. Travel Insurance Association Web (USTIA) or the Canadian Insurance Services Regulatory Organizations (CRISCO) database.
• Be wary of the price: When you buy travel insurance, you’ll notice the policy is not primarily expensive because travel insurance is rarely needed when you travel. Nothing happens on your trip most of the time, so if you see a very cheap travel insurance policy, be wary of the price and check out why it is so cheap.
• Take note of the words: Take close attention of the phrases and words in the policy and tiny print. For example, do not buy the coverage if it refers to “trip protection” rather than “travel insurance.” Travel insurance is usually not regulated by your state, whereas trip protection is. Scammers can use these terms to mislead their victims and make it appear as if they are selling travel insurance.
• Research the insurance coverage: Do a lot of research and find out what a basic travel insurance plan includes and the benefits. If you see an insurance plan that offers unusual benefits or notice something suspicious, double-check the agent, the provider, and the underwriting.
• Shop around: Don’t buy the first policy you see. Instead, do a lot of research, check out the different types of travel insurance, find out what you need in your coverage plan, and compare other insurance policies. Remember; if it’s too good to be true, it’s probably not.

Insubuy allows you to compare policies from the most reputable and safe companies. Click here to get a free quote.

What to Do in Case of Travel Insurance Scam?

Remember that online travel insurance frauds have become more sophisticated, imaginative, and hard to recognize. No matter how diligent you are, you may be scammed. Travel insurance scams should be reported to the police. Bring any insurance purchase documents, papers, or signed certificates. Unfortunately, most of these schemes fail to return your money, but the scammer may be held liable.

Travel Insurance Fraud

Travel insurance fraud involves making false claims to the insurance company. This is distinct from insurance scams where you lose money. Travel insurance fraudsters seek compensation for uninvolved losses or mishaps. Falsifying travel insurance claims is unlawful, and you may be arrested.

Unintentional insurance fraud can result from improper insurance claim filing. Avoid this by calling your 24/7 insurance claim hotline for advice on filing a correct claim.