Should You Use the Airline’s Travel Insurance Option?
When you go to book your flight, you usually come across an option to opt-in to travel insurance through the airline. I am a firm believer in every traveler needing travel insurance, but which is the best option? Booking it through the airline, your credit card, or a third-party?
Airline Travel Insurance
Typically, when you opt-in to travel insurance through the airline, this only covers your flight - meaning any major flight delay or cancellation. This does not cover any other flight expenses (lost or delayed luggage, hotel issues, health emergencies, etc.).
I have never opted-in to this option because I like having health insurance while traveling, and I believe airlines are really only looking out for themselves, so this insurance is the most basic form you can get. It also is usually expensive just for covering the flight delay and cancellation.
Credit Card Insurance
I have Capital One Venture as my travel credit card. According to their website, travel insurance that comes automatically when booked through their portal can cover (depending on your card):
Trip Cancellation and Interruption
Travel Delay
Travel Accident
It doesn’t go into what all is included in this or if there is a limit (I assume there is)
Lost or Delayed Baggage
Rental Car
Third-Party Insurance
I love using Allianz personally. It is usually only a little more expensive than what you’d opt-in to with the airlines, but covers so much more and is very clear cut with what is included.
When Neal and I went to Mexico in December 2020, a plan for both of us was $170. It included the following:
Trip Cancellation Coverage (up to $2000)
Trip Interruption Coverage (up to $3000)
Change Fee Coverage ($500)
Loyalty Program Redeposit Fee Coverage ($500)
Travel Delay Coverage ($800)
Baggage Loss Coverage ($1000)
Baggage Delay Coverage ($300)
Emergency Transportation Coverage ($500,000)
Emergency Medical/Dental Coverage ($25,000)
Another thing to note is that travel insurance is provided at no extra cost to children who are under the age of 18 years old on the date of purchase of insurance and who are traveling with a parent of grandparent.
Next time you travel, which option will you pick?