American Airlines Travel Insurance – Company Review

American Airlines Travel Insurance

4.7

INSURANCE PARTNER

8.0/10

COVERAGE OPTIONS

4.0/10

PRICE

2.0/10

Strengths

  • Available at Check-Out

Weaknesses

  • Very Expensive
  • Weak Benefits
  • Insufficient Travel Insurance Cover

American Airlines is one of the world’s largest airlines. In many parts of the USA it is the dominant carrier. Many of our customers ask if American Airlines Travel Insurance is good value. They want to know whether American’s flight insurance is good value, or a complete waste of money.

American Airlines Travel Insurance | AardvarkCompare.com

Anyone who has worked their way through the American Airlines check-out process knows that American does enjoy adding ancillary services and charges. It is probably no surprise to learn that in our American Airlines Travel Insurance Review, we rate their cover as incredibly weak, and, somehow overpriced as well. The best American Airlines Travel Insurance will inevitably come from one of the many specialist trip insurance carriers based in the USA. They offer competitive rates, with high levels of cover.

What is American Airlines Travel Insurance?

When we look to purchase flight insurance all we are trying to do is get reasonable cover at a decent price. It is rare to find cover that has such little content as American’s. Looking at American Airline Travel Insurance for US domestic flights we note that it has no travel medical insurance. American Airlines does not provide travel medical evacuation cover within its policy. There is no provision to support a customer if their trip is cancelled due to a work vacation being changed.

And yet, despite all these cover omissions, American Airlines Trip Insurance is one of the most expensive that we come across. No specialist travel insurance carrier that we work with sells a policy with such poor cover at such a high price.

The cost of flight insurance with American Airlines is more than double the price of a policy with substantially better cover. Please take a minute of your time to shop around, and read our flight insurance review. Is American Airlines Travel Insurance worth it? No, not in our opinion. You can find better much cover when you choose to purchase flight insurance.

American Airlines Partners with Allianz Travel Insurance

The majority of airlines in the USA choose to use Allianz Travel Insurance to provide flight trip insurance for their passengers. Whenever we review an Allianz Flight Insurance policy we seem to always get the same result – high prices and low cover. It makes little sense to us that American Airlines would promote such a poor product, but it must have good reasons for doing so.

We are a little biased. We like trip insurance. It can provide strong cancellation benefits, and help remove massive potential costs. No one wants to think about an accident or severe illness whilst on a trip, of course. But these things do happen, and can cost a fortune. Travel Medical Insurance and Travel Evacuation Cover can remove the crippling costs of these events, which is why we think that trip insurance for flights is worth it.

Should you get American Airlines Travel Insurance you will have none of this cover. No Travel Medical, and no Evacuation. Health costs are so high, which is why we want to see these benefits in a policy. We find that troubling. Is it strange not to have such benefits in a policy? Well, every single policy on our site includes travel medical and evacuation cover.
Why American does not include it is baffling.

Now, let’s book our flight from San Francisco to New York.

American Airlines Travel Insurance Price & Cover

We opted to fly out in Economy and back in Business Class. A total of $912.

American Airlines Travel Insurance - $912 SFO-NYC Return | AardvarkCompare.com

But, as we were selecting our seats, we got hit with the $88 ‘upgrade’ so as not to sit in a middle seat. That is brilliant. Whoever thought of that ‘upgrade’ in American’s yield management department deserves a promotion. Very clever indeed. So, we elected to pay the $88 to take our total seat price to $999.

American Airlines Travel Insurance - $999 SFO-NYC Return | AardvarkCompare.com

Having selected our flight, we now get the hard-sell invitation to spend $65 on American Airlines Trip Insurance.

American Airlines Travel Insurance - $65 | AardvarkCompare.com

Here is the language that they use:

Trip Insurance

Prepare for the unexpected

Add Trip Insurance? 

Yes, protect my trip for a total of $64.92.   Recommended
Includes trip cancellation, trip interruption, travel and baggage delay, and more.

“It’s wise to always consider a travel protection plan to cover your trip costs from the unexpected.” – Frommer’s, May 2016

No, I choose not to protect my $998.79 purchase. I understand by declining coverage I am responsible for all cancellation fees and expenses.

American Airlines has a nice quote from Frommer’s explaining that travel protection covers the unexpected. And we would agree with this. Except that the American Airlines travel insurance policy does not really cover the unexpected. The unexpected is getting sick or having your vacation cancelled, for example. American Airlines Trip Insurance will not cover you for this.

American Airlines Travel Insurance Benefits Coverage

Here is the cover if you buy flight insurance from American Airlines.

American Airlines Travel Insurance - Benefits Coverage | AardvarkCompare.com

American Airlines Trip Protector

Pricing – 6.5% of your total ticket cost and service fees
Benefits Coverage (per person)

Trip Cancellation – Up to trip cost ($3,000 max.)
Provides reimbursement for non-refundable trip payments and deposits if a trip is canceled for covered illness, death or other specific unforeseen circumstances.

Trip Interruption – Up to trip cost ($3,000 max.)
Provides reimbursement for non-refundable trip payments and deposits if a trip is interrupted for covered illness, death or other specific unforeseen circumstances.

Travel Delay – $500 ($150/day max.)
Provides reimbursement for meals and accommodations when a trip is delayed.

Baggage Delay – $500
Provides reimbursement for clothing, toiletries and other essential items if luggage is delayed for at least 24 hours.

24-Hour Hotline Assistance Included
Provides the traveler with a broad range of services in the event of a travel or medical emergency including: medical referral and monitoring, legal assistance, arrangement of medical evacuations or repatriations and pre-trip assistance.

Existing Medical Conditions Available
An Existing Medical Condition is an illness or injury that exhibited symptoms or was treated for any time 120 days prior to purchasing your plan.

American Airlines Travel Insurance – No Medical Insurance Cover

Normally, when we look at a travel insurance policy we see travel medical insurance cover. It just comes with the policy. It is expected. Even for domestic travel. Of course, most of us have health insurance at home. But, our home health insurance often has severe limitations for out-of-state or out-of-network treatment.

That’s why we want travel medical insurance. That’s why every travel insurance carrier provides medical cover for domestic travel. But, American Airlines Trip Insurance has no medical cover. When buying flight insurance it’s details like this that matter. You must understand the benefits of the policy you buy. It looks like with cheap American Airlines Travel Insurance, important benefits are missing.

No Travel Medical Evacuation Cover

If there is not a medical facility that can provide treatment close by, travel medical evacuation cover steps in. It can also get people from home to your bedside if you are in hospital for an extended time. American Airlines has no evacuation cover on its domestic policy.

No Vacation Cancellation Insurance

When we book a trip for a vacation, there is always a certain concern that our employer will cancel our holiday. This is exactly what you would hope Cancellation for Work Travel Insurance would cover. On a great trip insurance policy, it will. A quick confirmation letter from your HR department, and you can get a 100% refund. American Airlines flight protection does not offer this critical vacation cancellation cover. We cannot recommend that you buy American Airlines Travel Insurance if this type of cover is important.

American Airlines Redundancy Insurance – Three Years’ Continuous Employment

Flight Protection plans will typically protect a traveler if they have been made redundant. The best trip insurance policies that we see require only one year of continuous employment to be valid. American’s policy needs three years. That’s a big difference.

AardvarkCompare Travel Insurance Options

AardvarkCompare is a travel insurance marketplace. We partner with some of the largest travel insurance carriers in the USA. We take a little travel information from you, then give you binding travel insurance quotes. Your travel information is provided anonymously, so you won’t be bothered with emails and calls from multiple insurance carriers. You will see a range of travel insurance options, with benefits and pricing easily comparable.

We only ask for one minute of your time, and you can then compare the market against Flight Insurance from American Airlines. Here is what we got back when we ran a search for travel insurance.

American Airlines Travel Insurance - Aardvark Options | AardvarkCompare.com

Cheap American Airlines Travel Insurance was charged at $65.

Travel Insurance from American Airlines has:

  • No medical evacuation cover
  • Zero vacation cancellation insurance
  • No travel medical insurance

Yet, at AardvarkCompare, our lowest cost travel insurance is $27.
Our policy is significantly less than a half the cost of Trip Insurance from American Airlines
.

Every trip insurance that we offer has medical cover as a key benefit.
Every policy has medical evacuation cover.
We described it as cheap American Airlines Travel Insurance because so many key benefits are missing.

We have a low cost flight insurance, the iTI Lite Travel Insurance. Although we say low cost, at only $30, it has massive benefits when compared with the American policy.
There really is no comparison between the two.
We cannot recommend that you buy American Airlines Travel Insurance.

American Airlines Travel Insurance - iTI Lite | AardvarkCompare.com

Review – American Airlines $65 Cover versus iTI $30 Cover

iTI Lite Time-Sensitive Benefits

  • Cancel for Work Reasons: 100% refund
  • Pre-Existing Waiver: Yes
  • Time Sensitive Period: 20 days
  • Free-Look Period: 10 days
  • Pre-Existing Look-Back: 60 days

iTI Lite Regular Benefits

  • Medical Cover: Secondary
  • Covered Cancellation: 100% refund
  • Medical Sickness: $100,000
  • Medical Evacuation: $250,000

Work Cancellation

  • iTI Lite – Yes
  • American – No

Redundancy Cover

  • iTI Lite – Only one year of Continuous Employment
  • American – Three years of Continuous Employment is required

Travel Medical Insurance

  • iTI Lite – $100k cover
  • American – $0. You are on your own

Travel Medical Evacuation Insurance

  • iTI Lite – $250k cover
  • American – $0.

We have no policy on offer from any of our insurance carriers that offers as little cover as the Travel Insurance from American Airlines. It is impossible for us to find a policy with that little coverage. And yet, despite the paucity of relevant cover it is by far and away the most expensive policy when we compare against all of our low-cost options. The best American Airlines Travel Insurance you will find will almost certainly not come from American. You need to shop around.

American Airlines – Site Layout

Like many airlines, American gives customers the option of Non-Refundable or Refundable flights.

When we reviewed Non Refundable flights these were our options.

American Airlines Travel Insurance - Non-Refundable Options | AardvarkCompare.com

Look at the Refundable options

American Airlines Travel Insurance - Refundable Options | AardvarkCompare.com

Cancel for Any Reason – Airline Ticket Hack

Here are the options for us in our Economy seat.

  • Non-Refundable Main Cabin – $405
  • Refundable Main Cabin Flexible – $1,681
  • Refundable Main Cabin Fully Flexible – $3,436

We have seen some crazy flight prices over the years, but this is a Refundable Economy seat that cost nine times the price of a Non-Refundable.

We estimate that up to 25% of all flights that are booked are Refundable. Many people and companies are worried about needing to cancel, so pay the extra, often without checking. Please check. There are always options to think about.

Before we show you our work-around to this problem, let’s see what each seat gives us.
Remember, the seat itself is identical – same aircraft, food, entertainment, etc. The only thing that is going to differ is how much the airline is going to squeeze out of you.

Different American Airlines Economy Seat Booking Conditions

Remember, same seat, same food, same entertainment.
Very different prices.

Main Cabin – $405

  • Carry-on & personal item (access to overhead bin)
  • Choose your seat (fee may apply)
  • Eligible for upgrades on American flights
  • Flight changes allowed (fee applies)
  • General boarding

Main Cabin Flexible – $1,681

  • Choose your seat (fee may apply)
  • General boarding
  • Eligible for upgrades on American flights
  • Flight changes allowed (fee may apply)

Main Cabin Fully Flexible – $3,436

  • Choose your seat (fee may apply)
  • General boarding
  • No change fee (fare difference applies)
  • Same-day standby when available on American flights

There is no logical reason whatsoever to spend an extra $3,000 just to be able to cancel.

If you need booking flexibility, take a flight insurance with ‘Cancel for Work Reason’ travel insurance embedded into it – 100% refund.
Add ‘Cancel for Any Reason’ travel insurance and now, even if there is no reason whatsoever, the passenger will get 75% of their ticket price back. It’s our favorite airline booking hack.

Here are our travel insurance options that include both Cancel for Work travel insurance and Cancel for Any Reason Travel Insurance.

American Airlines Travel Insurance - Cancel for Any Reason | AardvarkCompare.com

The iTI Travel LX and TII’s Worldwide Trip Protector Plus provide the platinum type of cover that we are looking for. Note that the Travel Insured International Worldwide Trip Protector Plus is $75, only $10 more than the weak cover offered by American Airlines Trip Insurance.

Compare the two policies:

Travel Insured International – Worldwide Trip Protector Plus – $75

Time-Sensitive Benefits

  • Cancel for Any Reason: 75% refund
  • Cancel for Work Reason: 100% refund
  • Pre-Existing Waiver: Yes
  • Time Sensitive Period: 21 days
  • Free Look Period: 14 days
  • Pre-Existing Look Back: 60 days

Regular Benefits

  • Medical Cover: Primary
  • Hospital of Choice: Yes
  • Covered Cancellation: 100% refund
  • Financial Default: Yes
  • Medical Sickness: $100,000
  • Medical Evacuation: $1,000,000

American Airlines Flight Insurance – $65

Time-Sensitive Benefits

  • Cancel for Any Reason: 0% refund
  • Cancel for Work Reason: 0% refund
  • Pre-Existing Waiver: Not for medical sickness
  • Time-Sensitive Period: 14 days
  • Free-Look Period: 10 days
  • Pre-Existing Look-Back: N/A

Regular Benefits

  • Medical Cover: No cover
  • Hospital of Choice: No cover
  • Covered Cancellation: 100% refund
  • Financial Default: Yes
  • Medical Sickness: $0
  • Medical Evacuation: $0

The two policies are nearly the same price. But we are comparing a Rolls-Royce against a bicycle. We see no value in the trip insurance from American Airlines.

AardvarkCompare – Compare & Save

AardvarkCompare is a travel insurance marketplace. We get binding insurance quotes, anonymously, from all of our major travel insurance carriers. We provide simple comparison for travel insurance. Each of our insurance carriers is licensed and regulated in all 50 states, and D.C. Each has an A.M. Best Rating of at least ‘A’.

Does AardvarkCompare Charge More?

In the USA travel insurance is regulated in such a way that the same policy cannot be sold at a lower price. We cover this in our excellent article: Travel Insurance Comparison. You will not find lower insurance rates for the same policy.

What does this mean to a consumer?
It means that the cost of flight insurance that you see through us is the exact same as if you went direct to the insurer. We do not charge a cent more than if you went direct. Give us one minute of your time, and let us compare the travel insurance market for you. You do not need to contact every trip insurer.

So, enjoy your next trip with American.
Remember, the best American Airlines Travel Insurance is unlikely to be sold by them. Check your options.

Safe travels.

Recent AardvarkCompare Travel Insurance Customer Reviews

TP1|AardvarkCompare.com

TP3 | AardvarkCompare.com

I Panicked When I Discovered
I panicked when I discovered the Travel Insurance I had through Expedia had expired when I changed my flight reservation.
When I went to renew I was told I couldn’t.
I discovered Aardvark on my AARP site and I was excited I could purchase an even better travel plan with cover starting with my trip departure, at a cost I could afford.
I was confused with the initial site and Mr. Breeze reached out to me for clarification.
He explained the policy more thoroughly and addressed all my concerns, can’t get any better than that!
Thank You Aardvark and thank you Jonathan for your assistance.
I can go on my trip now knowing I’ll be covered for medical emergencies and then some. 
Barbara

 

TP6 - AardvarkCompare Review | AardvarkCompare.com

Good Choices, Well Explained
I liked the way insurance was explained. I had read an article your company had written explaining Expedia trip cover versus other choices.
I used this advice to make the best choice for me and my traveling companions. That choice was to take a policy that provided much better medical and evacuation primary care.
Your site allowed comparisons, and I think I got the best value for my money. I don’t like constant follow up emails, though. You could back off a bit!!
Louise

 

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