Can travel insurance help you avoid a problem with the airlines during the summer? She did it for Ruth White’s daughter, Maya, whose airline recently canceled her flight from New York to San Francisco.
“She had to spend a night in a hotel in New York,” recalls White, a professional speaker based in Bloomfield, New Jersey.
Good thing I had an annual travel insurance policy through Allianz which covered travel delays. She took care of the $220 Maya had to pay for her unexpected overnight stay in New York.
“It was great to know that our policy covered it,” he adds.
She is not alone. Berkshire Hathaway Travel Protection The latest State of Travel Insurance report reveals that fear of flight cancellations and delays is the number one reason people buy travel insurance.
“During the airline issues this past summer, we experienced an increase in travel disruption, delays and baggage claims,” recalls Tim Dodge, vice president of marketing for Arch RoamRight.
“When flights were cancelled, with no new flights for days, stranded travelers had unexpected expenses while waiting for their new flights.”
Why Summer Air Travelers May Need Insurance
If there’s ever been a summer that needs saving, this is it.
“The probability of another series of mergers is as high as that of mercury,” says Matthew Colbert, principal consultant at empire aviation servicesan aviation strategy consultancy.
Colbert has a long list of reasons why air travelers may experience interruptions. They include summer weather challenges and persistent staff shortages. It’s so bad that the Federal Aviation Administration recently asked airlines to cut back on flights to ever-congested New York.
“And the challenges in New York are also occurring at FAA air traffic facilities across the country,” he adds.
Terry Boyton, President of travel insurance there, says passengers are understandably worried. “More travelers are buying travel insurance to mitigate this risk,” she says.
But how can travel insurance help? And are there new ways in which a reliable travel insurance policy can help you if you are involved in another plane crash this summer?
What can travel insurance do for airline problems?
Travel insurance can provide protection in case of delays, according to Stan Sandberg, co-founder of the travel insurance site. TravelSeguro.com.
Among the benefits:
- Travel delay coverage will help cover additional costs for accommodation, food and transportation if an airline is delayed for an extended period.
- Baggage delay coverage will help replace essentials while you wait for your baggage.
- Trip interruption coverage can help reimburse unreimbursed travel expenses lost as a result of an unexpected work stoppage. Sandberg says the likelihood of a strike is much higher this summer than it was last year.
“Travel insurance can alleviate these kinds of travel disruptions,” he says.
Most travel insurance policies have these standard protections, although the amount of coverage varies.
Travel insurance can also protect the rest of your trip
Of course, people don’t just buy travel insurance for the benefits of airline coverage. A comprehensive policy can also cover the rest of your vacation if an airline disruption results in the loss of a night or the cancellation of the tour.
“If you’re concerned that a flight cancellation could cause you to lose money on other parts of your trip—a missed tour or unused hotel nights—travel insurance can help,” says Angela Borden, product strategist at seven corners.
But won’t buying a fully refundable ticket cover some of that risk? Not really, she says.
“This is one of the biggest differences between a refundable airline ticket and travel insurance,” he explains. “The refundable ticket will generally not cover non-refundable prepaid expenses, such as tour or hotel, but you could be reimbursed through travel insurance benefits.”
What are some new ways travel insurance can cover your flight?
Has travel insurance learned any new tricks in recent years that could help protect you against a summer air travel meltdown? Absolutely.
Most travel insurance now covers COVID-19, which can protect you if you get sick before your flight. companies like Global Covac we offer policies that will get you back home without any of the typical restrictions imposed by travel insurance companies.
Another little-noticed improvement: 24/7 helpdesks. Lately, travel insurance companies have added them to their policies.
“Many travel insurance policies include 24/7 helpdesks that can provide support and guidance in the event of a plane crash,” says Pallavi Sadekar, chief operating officer of VisitorGuard.com. “These services can help you navigate the situation, find alternative travel arrangements and get the support you need.”
Travel assistance can cover many of the tasks that a traditional travel consultant would do, helping you find alternative transportation or accommodation options when your flight is cancelled. Some policies offer access to medical and legal advice.
What else is new in airline coverage?
Many travel insurance policies now pay “inconvenience” benefits, also known as parametric benefits. These benefits affect airline passengers perhaps more than any other traveler.
“There has been a huge increase in the availability of travel inconvenience benefits, giving travelers a little cash to smooth things out during common scenarios like flight delays, flight cancellations, and lost or delayed baggage.” says Daniel Green, co-founder of Faye travel insurance. “More travel insurance providers have enabled parametric benefits, which make it quicker for clients to get that money when things go wrong.”
How does a parametric benefit work? It’s simple. If you missed your flight connection, your travel insurance company will cover the event under your policy, but will also send you $100 for the inconvenience.
How to buy travel insurance for your next flight
Rule number one: read your policy. Carefully.
Terra Baykal, Senior Marketing Manager at nomads of the world, says that the benefits vary depending on the country of residence and the insurer. “So be sure to read your entire policy.”
“It’s also important to note that most insurers won’t reimburse you if your flight is delayed and you decide to buy a flight with a different company,” says Baykal. “You’ll have to work with your airline to rebook. However, insurance can step in if your flight is canceled outright and your airline can’t rebook you.”
If you are unsure of your coverage, please contact your travel insurance company before booking a new ticket.
Also, make sure your insurance covers a flight delay.
“With a chaotic summer travel season predicted, get a travel insurance plan that also includes fixed benefit payments for the inconvenience of a frustrating travel experience,” says Carol Mueller, vice president of Berkshire Hathaway Travel Protection.
For example, Berkshire Hathaway Travel Protection has a specialized plan called AirCare that pays benefits for common inconveniences, including flight departure delays, disruptions, diversions and cancellations, missed connections, lost or delayed baggage, and tarmac delays. It also has another policy, the ExactCare Extra policy, with traditional travel insurance coverages but also inconvenience payments for travel headaches, like $50 for a delayed flight, $100 for a missed connection, or $ 1,000 for a tarmac delay.
Those payments are in addition to traditional travel delay coverage, which requires your delay to be five hours or more and only pays up to a certain limit per day, Mueller says.
The last word on insurance this summer
If you’re paying for travel, lodging, tours, or other items for a vacation this summer, you’ll want to get insurance that covers your out-of-pocket costs. Look for new types of coverage, like parametric benefits and 24/7 extended support, and don’t forget to be patient.
That would be the advice of Marti Mayne, a consultant to the hotel industry. She filed a claim with her travel insurance after a flight problem in December. Her travel insurance company required him to submit the same proof of cancellation documents three times.
“It was ridiculous,” she says. “But I did it.”
His insurance company finally paid him in April.
That is a story with a moral. Travel insurance is a good idea if you’re flying this summer, but if you file a claim, be prepared to wait.
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