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-   -   Trip insurance - financial default (https://www.fodors.com/community/south-america/trip-insurance-financial-default-955102/)

cmlong Oct 29th, 2012 09:49 PM

Trip insurance - financial default
 
I just booked & paid for a package tour to Chile, though this question is general to all locations.  This is a package, putting together stays in various parts of the country, I think the tours will be operated/contracted out to local providers in each area.

I want to buy trip insurance for medical/evacuation, and for financial default.
I have been researching all the major policies, and it seems they only cover default of airlines, cruise companies, hotels, etc.  None of them cover financial default of a travel agency!! This seems crazy!!!  The travel agency is what I am most worried about.  If a single hotel, domestic airline, ship (though I am not taking a cruise), bus line, etc go out of business, I can afford to deal with that (if you hundred dollars).  If the travel agency defaults and I lose the whole package price (many thousands of dollars), that is what I want to protect against.  But all of the trip insurance companies exclude this in their policies, so what is the point of buying travel insurance???  I can just buy a separate medical policy (which is much cheaper than the general policies) to cover emergency medical/evacuation.

Any advice out there??

snorkelluvn Nov 3rd, 2012 08:25 AM

I want to get a policy at least for airfare. Which policy do you recommend?

lcuy Nov 4th, 2012 09:33 PM

Travel guard covers financial default. You have to purchase it within a certain timeframe though. Check here:

https://buy.travelguard.com/tgi2/pct...N&pc=PCTDS-PGS

lcuy Nov 4th, 2012 09:35 PM

BTW, I've bought policies from them many times, and have filed several claims (medical, lost luggage, cancelled flights) and they have been very good at paying on claims quickly. I usually get the gold policy, because with a pre-existing condition it's cheaper than the ala carte plan.

SusanInToronto Nov 7th, 2012 02:05 PM

I know that when airlines go under, if you've booked with Visa, you're covered. Maybe that would apply?

cmlong Nov 7th, 2012 07:21 PM

@lcuy

Travel guard does not cover financial default of the travel agency/booking company, only default of tour operators, bus companies, hotels, airlines etc. So if you book a tour package through a travel agency and pay the agency directly not each individual provider, Travel guard does not cover you if the travel agency goes out of business. Same with all the other insurance companies. What good is that?

mlgb Nov 8th, 2012 11:11 AM

Hopefully you paid for it on a credit card, and not wiring thousands and thousands to a travel agency based in another continent.

Perhaps you could ask them for proof of bookings including reservations codes and verify that you do in fact have reservations.

snorkelluvn Nov 10th, 2012 06:18 AM

Yes, your credit card will cover you if you paid that way and an airline goes under. This happened to us with mexicana, and there was no problem at all once we contacted our cc company,


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