Airline Flight Insurance
Posted on April 21st, 2017
We think that Airline Flight Insurance is a great idea.
But buying that flight insurance from the airline itself is a terrible idea.
Every time we check, we see bad coverage and incredibly expensive policies.
Should there be any surprise?
Airlines like to charge us hundreds of dollars just to change our seat.
They seem to mark-up service they offer their travelers.
Why would airline flight insurance be any different?
Airlines charge so much more for their flight insurance policies than we see in the normal market.
Our advice is to take a look at a Travel Insurance Marketplace, like AardvarkCompare.com and shop around.
It will take you less than 2 minutes to get a completely anonymous quote, and let you compare and contrast what your airline or travel site is offering you.
Airline Flight Insurance – Recent Examples
Our $915 United Flight was quoted at $57 for flight insurance.
With American, a $929 flight came in at $92 for flight insurance.
Finally, with Delta, our $632 trip was quoted at $47 for their airline flight insurance.
Yet, when we compared against the Travel Insurance Market, here is an example of the results we were seeing:
The US has some first-class specialist Travel Insurance Carriers.
They are underwritten by insurance giants like AIG.
Their Flight Insurance Plans routinely come in at half the price of those offered by the airlines themselves.
Moreover, specialist plans typically have medical and evacuation coverage between 5 times and 10 times as much as the airline policies are offering.
Should I Buy Airline Flight Insurance? – Delta
We will use Delta’s policy as an example. Most airlines have very similar, if not identical coverages and limitations.
One immediate item to note is that the airline insurance has pretty limited cancellation benefits if you cancel for work reasons:
The Delta policy will cover you if you get laid off, but not if your company needs to cancel your vacation, for example.
Also, this coverage only works if you have worked for the employer for 3 continuous years.
It is a shame that it is necessary to read the fine print, but there are probably better options out there.
A Cancel for Work Reason option ought to help you solve this problem.
It is worth shopping around.
The airline insurance is not bad, but it probably makes sense to spend a couple of minutes getting the best policy, at the best price.
Airline Flight Insurance – Weak Coverage from the Airlines
Coverages with the airlines are not extensive, and their policies are not cheap. Shop around, is our advice.
It will take a couple of minutes and you will be able to compare accurately.
Note the limits on Trip Cancellation and Interruption – The airline policy has a maximum payout of $3,000.
If your trip was more expensive than this, then you are not fully covered.
The Medical Evacuation Maximum of $50k is pretty low.
At AardvarkCompare we would normally see at least $100k of benefit; our most comprehensive policy offers $1m of cover.
Where we have greatest concern is on the Emergency Medical cover. $10k is what we see in every airline flight insurance that we have compared.
Yet policies from the travel insurance market will typically have at least $100k of cover.
These are really big differences in coverage that cannot be overlooked.
You really shouldn’t be spending twice or three times as much on airline flight insurance that have 10 times less cover. Take the time to check.
So, as always, shop around, compare coverages and take the one that best suits your needs and your wallet.