The truth about Trip Assured

The most difficult kinds of cases to mediate as the Travel Troubleshooter involve insurance claims. This week’s column, in which I was unable to reverse an Access America decision, is a prime example. But another insurance dispute has been simmering on my backburner for some time — this one involving a company called Trip Assured.

Back in 2004, I wrote about a Trip Assured case that was at first denied and then processed after I became involved. But as I noted in the story, I don’t think I was the one who persuaded the company to back down. Instead, it was the persistence of the traveler, who threatened to contact every federal and state agency to complain, who I believe led to Trip Assured’s reversal.

Since then, I’ve been sent many e-mails from travelers who allege that Trip Assured is running a shady operation. I’ve received stories of legitimate claims being turned down and people losing their entire vacations. Questions have also been raised about whether Trip Assured is selling licensed insurance.

I guess a lot of people who were denied by Trip Assured took my advice — to be persistent — because at least five states have now barred the company from selling its products, including Florida, Michigan, Texas and Tennessee.

One such reader wrote to me just yesterday. “We have struggled with Trip Assured to get our $8,000 back since May, 2006,” she said. “We’ve engaged an attorney to fight this disreputable company. It was your article on the Internet that helped me get up the courage to even begin, and I thank you for taking the time to alert others.”

I’ve even received e-mail from the president of a Trip Assured competitor, who says his insurance is licensed. “It’s unfortunate that this hasn’t happened sooner as Trip Assured’s activities have tarnished real travel insurance companies and have promoted the image of insurance companies not wanting to pay legitimate claims,” he wrote.

I’ve looped back with Trip Assured’s president, McKinley Johnson, to get his side of the story. The occasion? Another Trip Assured customer, Sylvia Resnick, had contacted me about a denied claim, and I asked him if he could take another look at the case. Much to his credit, he responded almost immediately to my query. Trip Assured stuck by its original denial of the Resnick claim, which did not surprise me.

We had a brief exchange that I would describe as cordial, in which Johnson addressed some of his critics. He suggested that recent actions by states to prevent Trip Assured from selling its products would not impact his business in a significant way, because it meant that the company would just offer a different product to residents in those states. (Presumably, they woudn’t leave travelers with the impression that it was insurance.)

Then he added: “Neither Trip Assured, Inc. or the largest, Travel Guard International are insurance companies.”

My take? When you buy travel insurance — or travel “protection” — always, always, always read the fine print. Don’t just read the brochure or take a travel agent’s or customer service agent’s word for it.

Get it in writing.

Update: California’s insurance commissioner, John Garamendi has issued a cease and desist order against Trip Assured. (10/4/06)

Christopher Elliott is the author of Scammed: How to Save Your Money and Find Better Service in a World of Schemes, Swindles, and Shady Deals. Critics have called it “eye-opening” and “inspiring” — it’ll “grab your attention and won’t let go.” Order your copy now on Amazon, Barnes & Noble or iTunes.

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