Travel Insurance Lawsuits: Are You Overpaying?
Last Updated on November 10, 2023
Investigation Complete
Attorneys working with ClassAction.org have finished their investigation into this matter. Check back for any potential updates. You can also sign up for our free newsletter for the latest in class action news and settlements.
If you still have questions about your rights, contact an attorney in your area as there is a time limit for filing all lawsuits. The information on this page was posted when the investigation began and is now for reference only.
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Case Update
- March 16, 2020 - Investigation Closed
- Thank you to everyone who contributed to this investigation. At this point, the attorneys no longer need to hear from people who purchased “add on” travel insurance. If we become aware of any lawsuits filed over this matter, they will be posted here. If you have concerns about your rights regarding travel insurance, please contact an attorney in your area. In the meantime, you can check out our list of open investigations here.
The information below was posted when this investigation opened and remains for reference only.
At A Glance
- This Alert Affects:
- Anyone who bought “add-on” travel insurance when purchasing a ticket online with an airline or Amtrak within the last several years.
- What’s Going On?
- Attorneys are investigating whether consumers have overpaid for third-party travel insurance due to an illegal kickback scheme. If so, they want to file class action lawsuits to help people get their money back.
- How Could a Class Action Help?
- A class action lawsuit could help travelers get back any money they may have overpaid when purchasing travel insurance.
If you purchased “add-on” travel insurance when booking a trip online with any of the following companies, attorneys working with ClassAction.org would like to hear from you.
- Amtrak
- Spirit Airlines
- Alaska Airlines
- Frontier Airlines
The attorneys are investigating whether customers of these companies were overcharged for travel insurance due to an illegal kickback scheme – and whether a class action can be started to help get their money back.
What Started the Travel Insurance Investigation?
Multiple class action lawsuits have been filed over the last few years alleging that some major airlines and cruise ship carriers are collecting illegal commissions on third-party insurance being offered on their websites, and that, as a result, customers are being overcharged for these policies.
Attorneys working with ClassAction.org believe that this practice is not limited to just a handful of carriers. They’re investigating whether other companies that provide air travel or rail service have engaged in similar practices.
How Could I Have Been Overcharged?
It’s possible that the price consumers pay when opting for travel insurance on tickets booked online may include a commission that’s paid back to the airline, cruise ship or other carrier the reservation is being made with.
Lawsuits are claiming that the carriers do not meet the requirements to receive commissions for the sale of trip insurance and that these kickbacks are therefore illegal.
Because of the unlawful commission, the travel insurance is more expensive than it should be, lawsuits say.
Further, because the price isn’t tethered to the actual risk being absorbed, the policy isn’t worth as much as the price being paid.
It’s possible that some airlines and other carriers are intentionally concealing the insurance kickbacks from both public and insurance regulators and are presenting this insurance as a “recommendation” instead of disclosing their financial interest in the sale.
How Could a Class Action Help?
A class action lawsuit could help travelers get back any money they may have overpaid when purchasing travel insurance. It could also require certain carriers to cease collecting kickbacks on the optional third-party insurance they offer.
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