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New Jersey Department
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Travel Insurance Tips for Late Summer and Fall Travelers
TRENTON – New Jersey Department of Banking and Insurance Commissioner Ken Kobylowski today urged late summer and Labor Day travelers considering buying insurance to cover their long planned trip to use caution and be sure of what coverage they purchase. Insurance fraud and misleading protection claims may offer little or no protection for a dream vacation.
“Travel insurance may not be appropriate for all trips,” said Commissioner Kobylowski. “A long planned expensive vacation may be worth insuring. However, before shopping for extra coverage consumers should explore with their insurance agent or carrier and credit card provider as to what protection may already be in place.”
After reviewing possible existing travel insurance supplements, Commissioner Kobylowski encouraged consumers to ask the following:
Travel insurance agents and companies must be licensed in the state where consumers buy the policy. While reviewing travel insurance benefits, consumers also need to verify what state licenses the carrier.
Fraudulent travel insurance marketing and sales material may be difficult to discern from promotional literature made by licensed firms. Consumers must protect themselves and STOP before writing a check for the premium or signing anything and CALL the New Jersey Department of Banking and Insurance at 1-800-446-7467 and CONFIRM that the agent and company are licensed in New Jersey. To verify that a travel insurance agent or company is licensed in New Jersey, consumers can point browsers to: https://www16.state.nj.us/DOBI_LicSearch/insSearch.jsp
There are two main types of travel insurance. The first type, commonly called trip cancellation insurance, protects against the loss of non-refundable travel costs, such as airfare, hotel or tour expenses. Examples of these expenses would be non-refundable airline tickets or a deposit on a cruise.
The other type of travel insurance is protection against a large expense due to medical emergencies, damage to personal property or death that occurs while you are traveling.
“Travel insurance generally covers a very specific list of reasons for cancellation, delay or interruption,” said Commissioner Kobylowski. “Before consumers buy a policy they should make sure they have reviewed travel insurance policy conditions carefully.”
Trip Cancellation – Reimburses pre-paid travel expenses if vacationers are not able to take the trip due to illness or death.
Medical/Accidental Death Insurance may contain pre-existing condition and age limit exclusions. Such exclusions vary widely.
Travel Insurance Fraud
“Consumers should keep red flags in mind as warnings that some policies found online, from phone solicitations or through direct mail correspondence may possibly be fraud,” said Commissioner Kobylowski. “As I often say, if it seems too good to be true, it probably is.”
Here are some of the red flags for fraudulent travel insurance policies:
Travel Insurance Checklist
To avoid fraud and find the travel insurance that best fits individual needs, consumers should refer to this checklist:
“Consumers need to be aware of all exclusions and should be prepared to pay a higher premium in some cases,” said Commissioner Kobylowski. “American health insurance is generally not accepted outside the United States. Travelers should talk to their carrier or agent before buying this coverage and keep asking questions until they are satisfied with all the answers.”
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State of New Jersey
New Jersey Department of Banking and Insurance