| Insuring
your nonrefundable airline tickets | | |
| In this case, ticket protector
insurance would have paid off. The insurance would have paid for a night at a
hotel if you were delayed more than six hours. Had the strike lasted more than
24 hours, your insurance would have reimbursed you for your ticket, up to $3,000.
Keep in mind that changing your mind isn't a covered
reason. "You just can't decide not to go," says Porter. You must
have a covered reason to get your money back. Critics of the insurance argue that
the coverage is too limited because unforeseen circumstances often are not covered
under the insurance. "There is a fine
line on coverage, a very limited line and general in its scope, but if you truly
have a nonrefundable, nonreusable ticket, then the insurance will come in handy,"
Perkins says. "However, when you travel you don't really know your circumstances
and if you have a problem with coverage, generally the insurance company has the
upper hand." Consumer advisers say ticket protector
insurance should be purchased only under limited circumstances and some criticize
the airlines for setting up rules that prohibit refunds and then selling insurance
to provide refunds. The airlines say that the coverage provides its customers
with a choice. Deciding between travel
insurance and ticket protector insurance
The most basic form of the
airline-offered insurance is far more limited in its coverage than traditional
trip or travel insurance. While ticket protector insurance covers just your flight
and maybe a little more, travel insurance covers your whole trip. According
to Jim Grace, president of Insure My Trip, travel insurance provides more peace
of mind. "Because if you miss your flight, you will most likely be delayed
or miss the rest of your trip. So many other factors come into play and you could
lose all that money if you are not completely protected." Those
factors include rental cars, lost or stolen luggage, hotel reservations and any
tickets such as amusement park passes. Of course, you pay
for that extra protection. Travel insurance starts at 4 percent to 6 percent of
the total cost of your trip, and goes up from there. Sometimes up quite a bit. Travel
insurance can come in handy when you are abroad. "So
many Americans don't realize that their health coverage is limited or non-existent
when they are overseas," says Grace. "Medical care is included in many
travel insurance policies. So is emergency medical evacuation or even life insurance,
if you or someone in your family is accidentally killed while vacationing."
The number one reason why people purchase either ticket
protector insurance or travel insurance is medical protection, according to travel
insurance providers. "It just gives people peace of mind
to know that if they or a family member becomes ill, either before or during the
trip, they will be covered," says Jon Gehris, vice president of Travel Insured
International. A little research on both types of insurance
will help in your decision. You should also check with your
credit card issuer. Some provide insurance on rental cars and some on airline
travel, especially when the contractor does not supply what you purchased. Some
higher level cards (gold or platinum) will also offer insurance on accidental
death or dismemberment.
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