Flight insurance?
 

In my 35+ years of travel I have never taken out flight insurance, and never came close to needing it. But I am nervous about my current reservations with US Airways. My impression is that flight insurance is usually intended for customers who may have to cancel. Is there such a thing about getting insurance in case the airline cancels its flight? And who sells such insurance? Thanks.

The airline is obliged to offer a full refund or alternative flights in they event that they cancel them. Hence there is no need for such insurance. Regular travel insurance will pay for hotel accomodation in the unlikely event the airline does not offer this as an option.

Insurance specifically for flights is only if you are someone who is always changing their plans.

And what if the airline goes belly up?

On the insuremytrip.com website all the travel insurance companies are listed if you scroll to the bottom of the page. There are restrictions about bankruptcy - if a company files within so many days(usually 7 to 14) of your insurance purchase then it isn't covered. Most travel insurance companies also have a list of companies/airlines that they won't cover. Make sure if you buy that they cover DEFAULT.

I booked a flight on an airline that went belly up. They refused to refund my money or honor the ticket. My only recourse was through the credit card company who eventually recovered the money.

No major airline, even BA who are not performing well for shareholders are very unlikely to go bankrupt, and I believe this is covered under a good travel insurance policy. It is a risk that is unavoidable, stop being so paranoid over these things. Do you lie awake at night worrying what will happen if your car(s) won't start how you will get to work? If the bank/investments your savings are contained within go under? Grow up and get a life.

Thanks for the information kybourbon. So far it looks like the insurance is a little high because it is comprehensive and I am only interested in cancellation insurance. I will pursue it further.

m_kingdom--No I con't worry about my car starting in the morning, and I can't do anything about my stocks. But I would hate to lose my flight over (I am less worried about coming back) since I also am committing time and money on car leases and reservations on the basis of my departure flight. I do not think that I am being overly paranoid in this respect.

Even in the rare event of airline becoming insolvent, travel insurance will not replace your lost flight. If you are flying with a major carrier they will not go bankrupt, and even if they do there's nothing you can do about it except arrange alternative flights. We're not talking about large sums of money here as those airlines offering business and first cabins are unlikely to become insolvent!

You are being paranoid, get on with your life like the millions of airline passengers do every single day!

m_kingdom--I usually do not reply to your type of comments, but do tell me what happened to Braniff, Pan Am, Sabena and TWA? Today's NYTimes has an article about Southwest taking US Airways head-on and mentions that the latter airline is restructuring. Might that include eliminating its international flights? They won't tell.

That was then, this is now. Think of the shareholder's, a passenger holds a cheap flight not a major or even minor holding in the company.

Do you worry who you insure your house with? Do you worry if you book a package holiday and the hotel becomes insolvent? Do you worry when purchasing property the solicitor may walk with your money? Do you feel vulnerable from attack when shopping?

It is an holiday, an energising escape. I will personally guarantee your flight if it with a major airline, not Kazak International (yes, an invented carrier). For god's sake get on with your life go on holiday, come back, twenty years in the future are they insolvent? Er, no.

m_kingdom--Read a little more carefully. US Airways is the airline that I booked, it was in chapter 11, it is restructuring. BTW, the fact that I buy car insurance does not make me paranoid about driving, or that I buy earthquake insurance mean that I am unduly worried about earthquakes, or that I have health insurance mean that I am a hypochondriac.

Did I suggest those things for a minute?

Millions of other passengers, or at least many thousands have booked with this airline without so much concern - you're flying with them not investing.

I fly BA, looking at their figures one could reasonable conclude that they are not the best business to be investing in currently for long-term risk adjusted returns. Do I, or for that matter their other million of so passengers worry about them becoming insolvent, a resounding "n-o" (just to give an American, if ever so slightly American, flavour to the proceedings). Actually I'll buy you the insurance just so you can get on with your life and stop making yourself sound overly paranoid and afraid to live in front of others.

Sorry, I don't get the whole "paranoid" thing. If there is no trip insurance to cover flight cancellations or bankruptcy, can't we just say so? If there is such a policy, can't we just point Michael to it? People have different risk-tolerance levels, and different ranges of disposable income - a plane ticket is not really such a "small" investment, at least for an average working joe like myself.

My coworker didn't buy any trip insurance for Belize, after all, thousands go there all the time right? But she didn't know she'd be assaulted in her hotel room, and require a $20,000+ life-flight back to US... but I guess if she had bought insurance she'd have been "paranoid".

Travel insurance is an absolute must. There are so many events that could go wrong, from baggage being lost to a most serious incident such as assault detailed by yourself.

All I am saying is that a specific policy that covers you solely for loss of monies due to an airline becoming insolvent is a waste of time as this is not a regular occurence. General travel insurance, I will repeat, is an essential item, and must be taken out.

OK, m_kingdom, maybe I am starting to understand your point. Perhaps you are a reasonable person after all ;)

Travel insurance with a company like Travel Guard includes the medical, cancellation and default all in one policy but there are certain restrictions such as the company filing bankruptcy within 7 - 14 days of the insurance purchase and pre-exisitng medical conditions. You just have to read the fine print and they will send you literature if you request it so you can read all about it before you purchase.

I only ever purchase medical insurance, although in these circumstances I understand your desire to cover yourself in the event of an airline going bust.

The reason I would not buy full insurance is that it only covers you for stupidity or things beyond your control. When someone broke into an apartment that I had rented in Switzerland and stole all my clothes and skis there was no sign of forced entry - the landlord said a previous tenant must made a copy of the key and come back and taken everything. However, the police would not write a police report and American Express as a recult refused to pay. Fortunately the landlord felt so bad he compensated me.

I have had a number of other claims that have not worked. In fact I do not know one person who has ever made a valid claim to an insurance company. But nearly everyone I know has made one or more fraudulent claims.