Travel Protection Plans: Uncovering The Airlines That Care

Travel insurance is a way to protect your investment in a trip. It covers a number of travel-related risks, from flight cancellations to lost bags to medical emergencies.

Flight insurance is a type of travel insurance that covers the cost of your flight if you are forced to cancel your vacation. It can be purchased as a standalone product or as part of a comprehensive travel insurance plan. It is often sold by airlines as an add-on when booking a flight.

Many major airlines offer comprehensive travel insurance policies that include coverage for cancellations, medical expenses, and more. Some examples of airlines that offer travel insurance are Delta, American Airlines, United, Southwest, Allegiant, and Spirit.

Trip cancellation and trip interruption coverage

Trip Cancellation Coverage

Trip cancellation coverage provides coverage for prepaid, non-refundable trip costs in case you can't take your trip for a covered reason. This includes situations such as unexpected illness or injury to you or a travelling companion, the death of a family member, unforeseen natural disasters, or the cessation of services by your airline.

The coverage starts from the day after it is purchased and lasts until you depart on your trip. Once you depart, the coverage ends. Trip cancellation coverage provides reimbursement for the money you would lose due to cancelling your trip.

Trip Interruption Coverage

Trip interruption coverage begins after your scheduled trip departure and covers you in case you need to return home early or stay at your destination longer than planned for a covered reason. Covered reasons are similar to those for trip cancellation coverage. Trip interruption coverage provides payment for the additional money you would have to spend to return home or resume your trip.

Cost of Trip Cancellation and Interruption Coverage

The cost of trip cancellation and interruption coverage depends on several factors, including age, health, trip duration, number of people insured, cost of the trip, and the amount of non-refundable travel expenses. In general, a combined trip cancellation and interruption insurance plan will cost between 4% and 10% of your total prepaid, non-refundable trip cost.

Medical emergencies and evacuation

Medical Emergencies

In the event of a medical emergency while travelling, having adequate travel insurance is essential. Travel insurance typically covers medical emergencies, providing reimbursement for medical expenses incurred. This includes doctor and hospital fees, X-rays, lab work, and medication. It is important to note that travel insurance usually has separate coverage limits for medical expenses and evacuation.

When travelling abroad, it is important to check with your health insurance provider to understand your coverage. Domestic health insurance plans often have limited or no coverage outside of your home country. For seniors, it is important to know that Medicare is not accepted internationally.

Additionally, travel insurance can provide assistance with coordinating medical care, arranging emergency transportation, and handling billing. These services can be invaluable when facing a medical crisis in a foreign country.

Medical Evacuation

Medical evacuation insurance, often included in comprehensive travel insurance plans, covers the cost of emergency transportation to an adequate medical facility. This benefit is crucial if you become seriously ill or injured during your trip and require immediate care. The cost of medical evacuation can be extremely high, ranging from $15,000 to over $200,000, depending on your location and the severity of your condition.

Medical evacuation insurance typically covers the following:

• Emergency transportation to the nearest adequate treatment facility.
• Medical escorts, including specialized medical professionals who can administer treatment during transportation.
• Costs for a friend or family member to travel to you and stay by your side during hospitalization.
• Costs to transport your children back home if there is no one to care for them.
• Repatriation of remains in the unfortunate event of a death during the trip.

When purchasing medical evacuation insurance, it is important to review the fine print and understand any exclusions. For example, extreme sports and adventure activities may be excluded from coverage. Additionally, there may be requirements for hospital stays or pre-approval from the insurance company for certain benefits to apply.

Choosing the Right Coverage

When deciding on the amount of medical evacuation insurance needed, it is recommended to have at least $100,000 in coverage for international travel. For travel to remote locations or cruises, $250,000 in coverage is suggested. The most generous travel insurance plans can provide up to $1 million in medical evacuation coverage per person.

It is also worth considering supplemental coverage options, such as Medjet or Global Rescue, which offer additional benefits like direct evacuation to your home country or evacuation from the site of your emergency. These services can be especially valuable for travellers engaging in extreme sports or those with pre-existing medical conditions.

In conclusion, when travelling, it is crucial to have adequate protection for medical emergencies and evacuation. By choosing the right travel insurance plan and understanding the coverage limits and exclusions, you can ensure that you are prepared for any medical situation that may arise during your trip.

Lost, damaged or delayed baggage

Lost, damaged, or delayed baggage is a common issue for travellers, and it can be a stressful and frustrating experience. Many airlines offer some form of baggage protection or reimbursement as part of their travel insurance policies or as a standalone offering. Here is some information about what to do and what coverage to expect in the event of lost, damaged, or delayed baggage:

Prevention

To reduce the chances of your luggage being lost, damaged, or delayed, follow these tips:

• Pack a tracking device, such as an Apple Air Tag, inside your luggage.
• Remove any old airline stickers or baggage tags before checking your bag.
• Clearly label your luggage with your current contact information.
• Avoid booking connecting flights, as this increases the chances of your luggage being mishandled.

Coverage

If your luggage is lost, damaged, or delayed, most travel insurance policies and credit cards with travel benefits will provide some level of reimbursement. Here's what you need to know:

• Coverage limits: The amount of reimbursement varies depending on the policy and the credit card network. For example, Visa Infinite cards typically offer up to $3,000 per person per trip, while Mastercard World and World Elite cards offer up to $3,000 per person per trip, up to a total of $10,000 for all covered travellers per trip. American Express cards have different tiers of coverage depending on the specific card, ranging from $1,250 to $3,000 per person for carry-on baggage and $500 to $2,000 per person for checked baggage.
• High-risk items: It's important to note that most policies have lower coverage limits for high-risk items such as jewellery, watches, electronics, and cameras. For example, the Visa Infinite coverage includes up to $500 for these items, while the American Express® Gold Card covers up to $500 per person and The Platinum Card® from American Express covers up to $1,000.
• Excluded items: It's also crucial to be aware of items that are typically excluded from coverage. For example, American Express excludes cash, cards, travel documents, securities, tickets, living plants, consumables, eyewear, and medical aids. Capital One excludes medical items, cash and cash-like items, travel documents, freight shipments, and items for business use. Chase excludes documents, money, securities, tickets, checks, traveller's checks, and furs.
• Payment method: Additionally, pay attention to how you pay for your travel. Some credit cards require you to charge the entire fare to the card to qualify for coverage, while others will cover you if you pay with points from their rewards program. For example, the Chase Sapphire Reserve® covers you if you pay with points from the Chase Ultimate Rewards program but not if you use miles from an external airline program.
• Timing: There are also time limits to be aware of. For example, to qualify for the CFAR (Cancel For Any Reason) add-on offered by some travel insurance policies, you must cancel your trip at least 2-3 days before the trip starts and purchase the add-on within a specific time frame (usually 14-21 days) after the initial trip deposit.

Claims process

In the unfortunate event that your luggage is lost, damaged, or delayed, here are the steps you should take:

• Report to the airline: Inform the airline as soon as possible and fill out any necessary forms. Keep in mind that airlines may try to offer the minimum reimbursement, so it's important to advocate for yourself if you feel their offer is unreasonable.
• Keep receipts: Make sure to keep receipts for any essential items you need to purchase due to the loss or delay of your baggage. This will help support your reimbursement claim.
• Contact your credit card company: If you have a credit card with travel benefits, reach out to their customer service to understand the specific coverage offered and the claims process. They will guide you through the steps to file a claim and receive reimbursement.

Overall, while lost, damaged, or delayed baggage can be a frustrating experience, knowing your rights and having the right coverage can help ease the process and ensure you receive the reimbursement you deserve. Be sure to review the specific terms and conditions of your travel insurance policy or credit card benefits before your trip to understand the coverage and exclusions.

Rental car insurance

When it comes to rental car insurance, there are a few options available. Many travel credit cards offer rental car insurance as one of their benefits. For example, the Chase Sapphire Preferred Card, Chase Sapphire Reserve, and the Platinum Card from American Express all include rental car insurance. These cards can, however, come with high annual fees, so it's important to weigh the costs before signing up.

Alternatively, you can purchase rental car insurance directly from a travel insurance company, such as Allianz Global Assistance. Their OneTrip Rental Car Protector provides primary coverage for collision, loss, and damage up to $50,000, as well as 24-hour emergency assistance, for $11 per calendar day.

Some airlines may also offer rental car insurance as part of their travel protection plans. For example, American Airlines offers comprehensive travel insurance through a partnership with Allianz Travel, which includes benefits like trip interruption and cancellation coverage, as well as baggage delay coverage and travel medical insurance for international trips.

Finally, you may already have some coverage through your personal car insurance policy, so it's worth checking with your insurance provider before purchasing additional rental car insurance.

Travel delays

Travel Delay Insurance

Trip delay insurance can help cover costs accrued when your travel is delayed beyond a certain amount of time. This type of insurance is offered by some premium credit cards and travel insurance providers. It covers additional expenses, such as overnight accommodation and meals, if your flight is significantly delayed.

Trip delay insurance is protection against additional expenses incurred when your travel booked on a common carrier is delayed. Common carriers include airlines, ferry operators, passenger railroads, and long-distance bus services. It's important to note that not every delay is eligible for coverage, and the policy will specify the length of the delay required before coverage kicks in—often a minimum of six to 12 hours, or an overnight stay.

Trip delay insurance policies differ, but they typically cover reimbursement for necessary expenses incurred due to a travel delay, including meals, lodging, toiletries, transportation, and other personal items.

Credit Cards with Trip Delay Coverage

Many travellers may already have trip delay insurance without realising it. Check your credit card's benefits to see if you're already covered. For example, American Express offers trip delay insurance with most of its premium cards, and Chase offers trip delay reimbursement on its premium Sapphire credit cards and several of its high-tier co-branded credit cards.

Standalone Travel Insurance

If the credit card you booked your trip with doesn't offer trip delay protection, or if you need additional coverage, you can purchase it as part of a standalone travel insurance package. Allianz, Berkshire Hathaway, and Travelex are a few providers that offer travel insurance with trip delay protection.

Airline-Provided Travel Insurance

When booking a flight, your airline will usually offer you the option to insure your flight for an additional cost. This is the most affordable way to get flight insurance, but the coverage and assistance services are less robust. Major airlines like Delta, American Airlines, and United offer comprehensive flight insurance through partnerships with insurance companies.

Frequently asked questions