Trip Insurance...is this a loophole?

[mcpowell]

What cost difference do you see in declaring a travel cost of $1 vs the entire package (parking, flight, hotel, shuttle, charter). I have two trips coming up, I have DAN for a 7 day December LOB $2826 trip cost insured for $326 (elite). My 11 day January Royal Caribbean $3082 travel cost insured for $189 (RCI Travel protection). For me, the rates for the two are OK for what I'm getting.

If I use a trip cost of $3500, the elite plan is $237
If I use a trip cost of $1, the elite plan is $52.

This was for a 1 week stay.

But again, the $3500 is really unnecessary, because I do plan to go back, and I'm sure I could postpone almost all of it.

 

[ontdiver]

When in doubt, ask for specific details in writing. If they decline to do so, you should not count on the coverage that the sales person quoted over the phone.

 

[tursiops]

When in doubt, ask for specific details in writing. If they decline to do so, you should not count on the coverage that the sales person quoted over the phone.

Good luck getting ANYTHING in writing!

 

[mcpowell]

I would post a screenshot if I could, but due to technical difficulties, I cannot.

However, this DAN has an automated quote system. And then after you purchase your insurance, you get an email with your coverage limits. The email shows the coverage for exactly what you signed for.

I really don't think there would be a problem, unless I tried to get coverage for the trip costs, which would only be covered up to $1.

 

[living4experiences]

As relayed to me by a sales representative of Travel Insured a few years ago, you only purchase travel insurance for the nonrefundable costs of your trip. It's not fraudulent to insure the trip for less than the total amount paid.

I buy the insurance primarily for the medical coverage, so I use the lowest value possible for the lowest premium cost. One thing I found out is that some insurers price the plan in blocks of value, i.e., $1-$999, $1000-$3000, etc.

 

[Lorenzoid]

I wonder if, in addition to medical coverage, trip interruption/delay coverage would also be provided if the value were stated as one dollar? If what has been posited in this thread is true--and several posters have backed it up--I am never going to value a trip at more than a dollar again. Airfare, lodging, etc., are generally either refunded or compensated with vouchers for future use. I can't think of much that I would ever be horribly out of pocket for that could have been insured against.

 

[ReefHound]

I wonder if, in addition to medical coverage, trip interruption/delay coverage would also be provided if the value were stated as one dollar? If what has been posited in this thread is true--and several posters have backed it up--I am never going to value a trip at more than a dollar again. Airfare, lodging, etc., are generally either refunded or compensated with vouchers for future use. I can't think of much that I would ever be horribly out of pocket for that could have been insured against.

I haven't seen anyone back it up... with an actual claim paid.

 

[BRT]

I haven't seen anyone back it up... with an actual claim paid.

Which is my problem with all travel medical insurance.

 

[mcpowell]

Posting a screenshot of a quote using $1 as trip cost. (I couldn't before due to temporary server space restrictions)

 

[mje113]

@mcpowell Thanks for this! I've been reluctant to get trip insurance for a while for the same reasons. I like that I can cover medical and baggage/equipment issues for a reasonable price.