Insurance traps exposed: experts warn of unnecessary costs!

Insurance traps exposed: experts warn of unnecessary costs!

More and more consumers are unsure which insurance policies are actually necessary. Experts warn that a variety of policies can be either unnecessary or even harmful. The focus is particularly on residual debt insurance for loans and various travel insurance policies. Provides detailed information in Franconia.

Many financial advisors view residual debt insurance critically. It causes high costs and often offers only poor performance. There are significant concerns regarding insurance coverage, particularly when it comes to travel financing.

Travel cancellation insurance under the microscope

A central issue is travel cancellation insurance. This is intended to cover financial losses if a trip has to be canceled for certain, usually serious, reasons. Reasons such as serious illness, accidents or a court summons can justify a cancellation of the trip. In such cases, the insurance reimburses the cancellation costs and unused travel services. However, the need for this insurance depends heavily on individual travel costs and the risk of cancellation, such as Verivox explained.

Some events are excluded from coverage, including separations or postponements of school exams. It is also important to distinguish between travel cancellation insurance and trip interruption insurance, which takes effect during a trip that has already begun. Consumers should carefully consider whether investing in such insurance makes sense, especially if travel prices are high or if free cancellation is not possible.

Criticism of other insurance offers

In addition to travel cancellation insurance, there are other insurance offers that experts consider to be unnecessary. One example is luggage insurance, which includes many exclusions and restrictions. In order to actually receive payment in the event of damage, the luggage must be permanently in sight or within reach. Grossly negligent behavior could even lead to a complete rejection of the service.

There is often a lot of uncertainty regarding tutoring insurance. Astra Versicherung AG recently received the award as “Insurance Cheese of the Year” 2024 for its “Tutorial Insurance Plus” offer. For an annual premium of 29.99 euros, it offers compensation for educational services during hospital stays, which consumer advocates consider unnecessary. Typically, schools would be able to offer schooling during a hospital stay.

Overall, consumers should think critically about their insurance decisions and be well informed. A differentiated view can help to avoid unnecessary costs and make future-oriented decisions.