Travel insurance used to be a small segment of the insurance business that protected people against the loss of a non-refundable deposit on a big-ticket vacation such as a safari or a round-the-world cruise. But the Sept. 11, 2001, terrorist attacks and a series of natural disasters in the early 2000s pushed it into the mainstream. Today, it’s hard to find a travel agent or travel site that doesn’t try to sell an optional insurance policy as part of a trip.
In a sales presentation he attended a year ago, Dallas-based Royal Palms Travel offered him deep discounts on cruises and other travel products. All he had to do was pony up a $5,593 membership. He did.
Remember Prime Travel protection, the Colorado travel insurance company that shut down amid allegations it sold unlicensed policies? Turns out it’s not dead yet.
When Dick Rheinhardt booked a cruise vacation through Four Seasons Tours and Cruises, in Largo, Fla., last November, he agreed to pay $824 for what he believed to be a travel insurance policy. But it wasn’t a real policy, he says. A few months later, Florida authorities told three agencies that Prime Travel Protection policies might be bogus. Rheinhardt wanted a refund.