13 Travel Scams to Avoid and Stay Protected

10. Fake Travel Insurance and Refund Scams

What it is: Fraudulent firms sell policies that don’t cover what they promise, or scammers offer "refund processing" and ask for bank details. You might think you’re protected during a medical emergency, only to find the insurer unresponsive. How they work: A seller offers cheap insurance through cold emails or pop-up ads; after you buy, the policy has huge exclusions or the company is hard to contact. Refund scammers contact you claiming to process a refund but need bank details or a "processing fee" first. Prevention steps: Buy policies from reputable insurers or comparison sites tied to known carriers. Read the policy exclusions carefully and keep digital and paper copies. For refunds, confirm the source by contacting the company directly. Use a credit card for purchases so you can dispute charges if needed. Where to report: Report fraudulent insurers to the state insurance regulator and the FTC. If a company claims to process refunds and asks for bank details, report it as potential identity theft to the FTC and your bank.