# Travel Insurance Info from InsureMyTrip.com



## Timeshare Von (Oct 27, 2012)

I thought this might be of interest to others since travel insurance purchases come up here quite a bit.  As a past customer of InsureMyTrip.com, they sent this out to me via email:
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InsureMyTrip Explains*
"With the recent challenges American Airlines has been facing, we've received a number of calls and questions from travelers who want to know what kind of protection travel insurance offers in the case of extended delays, an airline strike or, possibly worse, a financial default. We asked our Customer Care Training Specialist, Lynne, to provide some answers."
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Lynne's Answer:*
"It's understandable that people would be worried about what's happening with American Airlines. Theoretically, this is the kind of thing that might happen to any airline or common carrier – it's one of those things that's just beyond our control as travelers. The good news is that there are some benefits provided by travel insurance that people can be aware of when they book their next trip.

As far as the seats coming loose, which has been big news lately: Obviously the biggest concern here, beyond safety, is going to be delays and cancellations. In general, travel insurance package policies will offer coverage for cancellations and for delays of more than five or six hours, depending on the policy you choose. Not only can you get reimbursement for extra fees you incur if you have to change your travel arrangements, but you can also file claims for money that you have to spend on incidentals like food and lodgings if you're stuck. Always check your policy to be sure you understand the coverage that's offered as well as what you'll need as far as documentation when you file your claim.

Other concerns, like strikes and possible financial default, are more complicated. One thing travelers really need to be aware of is that once the possibility of a labor dispute has been announced, you generally can't buy travel insurance that will protect you against the effects of that labor dispute – it's sort of like buying flood insurance after the rain starts. However, if you already do have travel insurance in place before the announcement of a strike, there may be coverage provided to you. I'd encourage people to read our blog post about this type of situation for more detailed information.

As far as financial default, this is one of the key reasons that we strongly encourage travelers to buy their insurance from a third party like InsureMyTrip or another reputable company, not through their airlines. Typically, any travel insurance that is offered to you by your travel supplier is not going to protect you if that supplier goes bankrupt. However, if you purchase your insurance from another source that's not affiliated with your carrier, you may have protection against financial default so you can recover your investment."


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## dioxide45 (Oct 27, 2012)

Timeshare Von said:


> As far as financial default, this is one of the key reasons that we strongly encourage travelers to buy their insurance from a third party like InsureMyTrip or another reputable company, not through their airlines. Typically, any travel insurance that is offered to you by your travel supplier is not going to protect you if that supplier goes bankrupt. However, if you purchase your insurance from another source that's not affiliated with your carrier, you may have protection against financial default so you can recover your investment."



I don't believe this is necessarily true. I believe that in many cases when you buy insurance through your carrier, that insurance is actually underwritten by a different company. I don't think many carriers are in the business of insurance, in fact they may not even be able to underwrite the insurance they sell without being properly licensed. Am I not correct?


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## Kagehitokiri2 (Oct 27, 2012)

ive never seen anything describe coverage in such a way that it states that your PAID TRAVEL will be reimbursed if you are not able to consume it (not including act of god, terror, war)

*dioxide45* is correct re underwriters, im not sure exactly what Lynne was focusing on

not all insurance covers supplier default

credit cards (especially amex) will let you dispute quite a bit, but airline default is specifically excluded


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## Bunk (Oct 27, 2012)

dioxide45 said:


> I don't believe this is necessarily true. I believe that in many cases when you buy insurance through your carrier, that insurance is actually underwritten by a different company. I don't think many carriers are in the business of insurance, in fact they may not even be able to underwrite the insurance they sell without being properly licensed. Am I not correct?



Dioxide, I believe you are wrong.   In order to be insured against financial default of the carrier, the policy must have financial default coverage.  I believe that all of the policies sold by a carrier exclude this coverage.  

In looking at this issue I found that some insurers publish a list of carriers who they will insure against financial default.  Allianz is big in the travel insurance business.  I was surprised to see that they only insure 9 airlines against financial default:  Air France, Airtran Airways, Alaska Airlines, Easy Jet, Nippon Air, Qantas Airlines, Ryanair, Singapore Airlines, Southwest.  http://www.allianztravelinsurance.c...es/CoveredSuppliers/Covered Supplier List.pdf

Here is an article that discusses this issue.  http://www.travelinsurancereview.net/2008/04/11/travel-insurance-bankrupt-airlines/


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## Timeshare Von (Oct 28, 2012)

Just to be clear, the info I posted above is directly from InsureMyTrip.com . . . and quoted from the email I received.

I did not elaborate nor explain anything they wrote.  If it is wrong (or misleading), then that would be on them.

That said, I don't know why they would be telling untruths to their customers.  Before buying any insurance policy, you should do your homework and understand what it is you need to insure . . . and what the terms & conditions are.


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## dougp26364 (Oct 28, 2012)

Coverage provided by the carrier is extremely limited in scope of what is actually covered. It's inexpensive for a reason, it doesn't cover very much.


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## dioxide45 (Oct 28, 2012)

Bunk said:


> Dioxide, I believe you are wrong.   In order to be insured against financial default of the carrier, the policy must have financial default coverage.  I believe that all of the policies sold by a carrier exclude this coverage.
> 
> In looking at this issue I found that some insurers publish a list of carriers who they will insure against financial default.  Allianz is big in the travel insurance business.  I was surprised to see that they only insure 9 airlines against financial default:  Air France, Airtran Airways, Alaska Airlines, Easy Jet, Nippon Air, Qantas Airlines, Ryanair, Singapore Airlines, Southwest.  http://www.allianztravelinsurance.c...es/CoveredSuppliers/Covered Supplier List.pdf
> 
> Here is an article that discusses this issue.  http://www.travelinsurancereview.net/2008/04/11/travel-insurance-bankrupt-airlines/



I think the e-mail seems to imply that when you buy insurance through the carrier, that if that carrier is bankrupt that the insurance is no longer in force. That isn't the case if the insurance is underwritten by a third party.

As Doug pointed out, insurance offered by carriers is very limited. When you compare it to other policies it is usually very expensive for what it covers.


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