Airlines Add Cancellation Insurance To Their Lines

[question everything]

The Wall Street Journal

June 14, 2005

THE MIDDLE SEAT
By SCOTT MCCARTNEY

Airlines Add Cancellation Insurance To Their Lines

Policy Fine Print Excludes Many Common Situations That Force Change of Plans
June 14, 2005; Page D4

(snip)

Should you buy it? Only under very limited circumstances. After all, if you read the fine print, you'll see the insurance covers only very limited circumstances. Fare watcher Terry Trippler points out that it takes a measure of chutzpah for an airline to create severe restrictions like making a ticket nonrefundable, then selling insurance to avoid the effect of its own rules. "It's sort of double-dipping. You set the rules, and then turn around and charge people to escape them," said Mr. Trippler.

(snip)

The "Airline Ticket Protector" will reimburse you for the cost of your ticket, up to $3,000, if you have to cancel for a "covered reason." It costs 4% of the total price -- $40 on a $1,000 ticket. Northwest offers international travelers a more-expensive product at 5.5% called "Comprehensive Trip Protector" that includes some medical coverage and emergency medical transport.

With either level, "covered reasons" turn out to be fairly limited. They include sudden medical emergencies, but not all medical emergencies. The insurance doesn't generally cover for you a medical problem already being treated... "Ticket Protector" covers you in case of a labor strike at an airline, but you already have some protection there. Airlines honor tickets from competitors in the event of a strike or a shutdown. "Trip Protector" will refund the price of your ticket if your flight is canceled because of a natural disaster or bad weather, too. That's fine if you want your money back. But airlines routinely waive change fees and penalties when bad weather strikes so passengers can rebook trips.

The fine print limits the insurance company's exposure. The insurance also covers traffic accidents, for example, but only if the accident happens on the way to the airport. It covers you if you get scared off by a terrorism incident, but only if the country you're ticketed for gets hit within 30 days before your departure. And countries where there have been terrorism incidents in the previous six months are excluded.

(snip)


If you're worried about unexpected illness and have expensive tickets, "Trip Protector" offers some relatively cheap peace of mind. Many don't want to be begging airlines for compassion during a personal crisis. Of course, the few unforeseen disasters that are covered tend to be the kind of life-crisis situations in which airlines should be granting leniency to their customers anyway. Some do in the face of medical emergencies and other woes, without dinging you for extra protection. They figure helping customers can generate long-term buying loyalty. What the insurance doesn't cover is simply changing your plans -- that's what most travelers would want.

• Write to Scott McCartney at [e-mail]5

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http://online.wsj.com/article/0,,SB111870832929058686,00.html

[flordehinojos]

1. all i can say is that bush and his corporatist team like to breed

cucarachas and more cucarachas.

[orion9941]

2. Well this should make flying all the more intolerable.

[newyawker99]

3. Hi orion9941!!

Welcome to DU!! :toast: