If you are planning a dream vacation or just a Labor Day getaway - you might want to think about getting travel insurance.

Flickr User Sankara Subramanian

New Jersey Department of Banking and Insurance (DOBI) Commissioner Ken Kobylowski is offering some tips.

There are two primary types of travel insurance according to New Jersey Department of Banking and Insurance (DOBI). One is typically called trip cancellation insurance. It protects against the loss of non-refundable travel costs, such as airfare, hotel or tour expenses. The other type protects against a large expense due to medical emergencies, damage to personal property or death that occurs while you are traveling.

“Travel insurance generally covers a very specific list of reasons for cancellation, delay or interruption,” explains Ken Kobylowski, Commissioner of DOBI.  “Before consumers buy a policy they should make sure they have reviewed travel insurance policy conditions carefully.”

Beware Of Travel Insurance Fraud

Here are some of the red flags for fraudulent travel insurance policies according to DOBI:

  • The insurance is marketed with blast faxes, spam e-mails, Internet pop-ups or signs posted on telephone poles.
  • The company claims you can save hefty amounts on travel insurance.
  • The company uses high-pressure sales techniques with an extreme sense of urgency with lines like, “you must act now” or “this one-time offer.”

“Consumers should keep red flags in mind as warnings that some policies found online, from phone solicitations or through direct mail correspondence may possibly be fraud,” advised Kobylowski. “As I often say, if it seems too good to be true, it probably is.”

Travel insurance agents and companies must be licensed in the state where consumers buy the policy. While reviewing travel insurance benefits, you need to verify what state licenses the carrier.