Is travel insurance really a good option?

12/13/2013 5:45:27 PM

There are many precautions and preparations that can be taken to ensure a safe and smooth business trip. Getting insurance for your car rentals is an obvious move, and many people also purchase travel insurance, which provides emergency services and medical coverage while you're away as well as reimbursement if your flight is canceled. However, recent research suggests that this form of insurance may be a waste of money.

In late November, the National Consumers League released a report revealing that such insurance policies do little more than give traveler's peace of mind. Companies offering trip protection often refuse to pay out for flight cancelations and medical services.

Many insurers incorporate an extensive list of exclusions in their fine print that allow them to reject claims under even some of the most common situations. For instance, if a business traveler's meeting is canceled and he or she no longer needs to go out of town for work, the insurance company will often refuse to reimburse the employee for the cost of the ticket. For that reason, flyers should be wary of purchasing a policy at the ticket counter and be sure to read the fine print closely.

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