Americans spend more than $1 billion on travel insurance (paid to agents) to guard against cancelled flights and stolen bags. Thing is, other policies often cover the same stuff. Some homeowners’ policies and credit cards cover lost luggage; airlines reimburse travelers for up to $3,000 worth of goods. “It’s not a good economic decision for most people,” says Robert Hunter, director of insurance at the Consumer Federation of America.
How to Avoid It: If you just can’t sleep without insurance, “don’t buy from someone who’s selling you something else,” say Hunter. “It’s almost always a bad deal involving kickbacks to whoever’s offering the service.”
–Austin Insurance Group and IMG Travel Medical Insurance and more