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Money expert Clark Howard recommends buying travel insurance, especially for cruises or expensive international trips. However, he advises against purchasing travel insurance for flights, as it is often unnecessary. Airline tickets are typically refundable or offered as credit for future travel, so insuring them is generally not worth the cost. There are exceptions, such as once-in-a-lifetime trips, where purchasing flight-specific insurance may be beneficial. Additionally, Clark suggests buying comprehensive travel insurance that covers various aspects of a trip, including flights, rather than separate policies for each component. He recommends using comparison sites like InsureMyTrip to find suitable travel insurance plans.
| Characteristics | Values |
|---|---|
| Airline insurance worth it? | Not necessary for flights, but for expensive trips and cruises. |
| Recommended by Clark Howard? | Yes, for expensive trips, cruises, and international travel. |
| Best place to buy airline insurance? | Independent comparison sites like InsureMyTrip. |
| Cost of airline insurance | Typically 4-10% of the total trip cost. |
| Benefits of airline insurance | Covers illness, death, default by airline, baggage loss, delays, cancellations, and medical emergencies. |
| Additional considerations | Check fine print, exclusions, and pre-existing conditions. |
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What You'll Learn
Clark Howard's recommendations for airline insurance
Money expert Clark Howard recommends buying travel insurance for expensive trips, especially cruises or expensive international trips. He advises against buying narrow insurance policies, but makes an exception for travel insurance, as trips can be incredibly expensive and non-refundable.
Clark recommends buying insurance with “cancel for any reason” policies, as they provide the most flexibility. While they are more expensive than standard policies, they can provide 50-75% reimbursement of trip costs if you cancel at least 48 hours before departure. However, CFAR policies are typically only available in the first 10-21 days after making the first payment.
Clark strongly advises against purchasing travel insurance from airlines, cruise lines, tour operators, or travel booking sites. He suggests using comparison sites like InsureMyTrip to find the best travel insurance for your needs. InsureMyTrip offers a recommendation tool to guide travelers toward plans that protect against COVID-related travel issues.
If you travel frequently, Clark suggests considering annual travel insurance, which can save you money and time with one policy covering you worldwide for a year. However, annual plans usually have a maximum number of covered days per trip, typically ranging from 30 to 90 days.
For those who travel infrequently, single-trip insurance is likely a better option. Additionally, Clark recommends purchasing separate trip insurance policies for each aspect of the trip, such as one for the flight and another for the tour.
When purchasing travel insurance, it is essential to read the fine print to understand the inclusions and exclusions of your policy.
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When to buy airline insurance
Money expert Clark Howard recommends buying travel insurance, especially for cruises or expensive international trips. However, he advises against purchasing travel insurance for flights, as it is often unnecessary. Airlines typically do not charge a penalty for cancellations, and you can usually use the credit for future flights.
There are exceptions to this guideline. Clark suggests considering airline insurance if you view the trip as a once-in-a-lifetime opportunity and would not have another chance to use the credit. Additionally, if you want the option to cancel for any reason, purchasing airline insurance with this specific provision may be worthwhile. This type of policy is more expensive but offers greater flexibility.
When deciding whether to buy airline insurance, it is essential to understand what it covers. Basic airline insurance typically includes trip cancellation, baggage loss, airline delays or cancellations, and medical emergencies. It is worth noting that some credit cards also provide travel insurance, so checking your card's benefits is advisable before purchasing a separate policy.
If you travel frequently, annual travel insurance may be a more cost-effective option. These policies usually cover multiple trips within a year, each with a maximum duration of 30 to 90 days. Annual travel insurance can save you time and money, but be sure to review the inclusions and exclusions to ensure it meets your needs.
When purchasing travel insurance, Clark recommends using independent comparison sites like InsureMyTrip to find the best policy for your specific needs. He cautions against buying insurance directly from airlines, cruise lines, or tour operators, as these policies are often inadequate and designed to protect the company rather than the consumer.
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When not to buy airline insurance
Money expert Clark Howard advises against buying airline insurance, especially directly from an airline website or travel booking site such as Expedia and Travelocity. These policies are designed to protect the company and not the consumer. Instead, he recommends buying separate trip insurance policies for each aspect of the trip. For example, one for the flight and another for the tour.
Clark suggests using InsureMyTrip, an independent travel insurance comparison site, to find the best travel insurance that suits your needs. InsureMyTrip's quote process includes a recommendation tool that guides travellers towards plans that can protect against COVID-related travel issues.
While Clark typically advises against buying narrow insurance policies, he makes an exception for travel insurance, especially for cruises or expensive international trips. He also recommends buying travel insurance with “cancel for any reason” coverage for expensive tours where you would lose your money if you didn't go.
However, it is important to note that CFAR policies are more expensive than standard policies and usually provide only partial reimbursement (50%-80%) of your trip cost. Additionally, CFAR policies are typically only available within the first 10-21 days after making the first payment for your travel arrangements.
Before purchasing travel insurance, consider factors such as the number of trips you take annually, the length of your trips, the possibility of cancellation, the type of trip, the risk of injury, your healthcare insurance coverage, and whether your credit cards provide travel insurance.
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The best places to buy airline insurance
Money expert Clark Howard recommends buying travel insurance, especially for cruises or expensive international trips. However, he advises against purchasing insurance offered by airlines, cruise lines, tour operators, or travel booking sites as they are designed to protect the company and not the consumer. Instead, he suggests using travel insurance comparison sites like InsureMyTrip, which allow you to compare different choices available and offer guarantees like the Best Price Guarantee and Money-Back Guarantee.
Other popular travel insurance comparison sites include TravelInsurance.com, which offers options from multiple vetted insurance providers and allows users to read reviews, and Squaremouth, which enables you to compare over 90 travel insurance plans from 30 providers.
When choosing travel insurance, it's important to consider factors such as trip length, pre-existing medical conditions, depth of coverage, your age, and any add-ons. Additionally, check if your credit card provides travel insurance, but always read the fine print to understand the coverage.
While Clark Howard generally recommends against buying travel insurance for flights, he suggests considering it for certain types of trips, especially with "cancel for any reason" policies. This type of coverage allows you to cancel your trip for any reason and typically provides reimbursement for a percentage of your prepaid, non-refundable trip costs.
In summary, the best places to buy airline insurance are travel insurance comparison sites like InsureMyTrip, TravelInsurance.com, and Squaremouth, which offer a range of choices, guarantees, and user reviews to help you make an informed decision.
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What airline insurance covers
Money expert Clark Howard generally advises against buying narrow insurance policies. However, he makes an exception for travel insurance, especially for cruises or expensive international trips.
Trip Cancellations
In the event of illness or death of a member of the travelling party or a close relative, travel insurance provides a full or partial refund. It can also cover you in the case of an airline default. However, it is important to note that not all policies cover pre-existing conditions, so it is essential to check the fine print. Additionally, some policies may have specific requirements for cancellation, such as a minimum of 48 hours before the trip.
Baggage Delays and Loss
Travel insurance can provide coverage for baggage delays or lost or stolen bags. This includes reimbursement for personal belongings and covering the cost of purchasing essential items until your baggage arrives.
Emergency Medical Care and Evacuation
Travel insurance can be crucial in providing coverage for emergency medical care and medications while travelling. It may also include medical evacuation insurance, which covers the cost of transportation to the nearest medical facility that can meet your health needs. This can be especially important if you are travelling to a remote area or have underlying health concerns.
Trip Interruptions
Travel insurance can provide coverage if your trip is interrupted due to unforeseen circumstances, such as a family emergency. It can also offer protection for missed connections, accidental death, and repatriation of remains.
"Cancel for Any Reason" Coverage
While this coverage is typically an add-on to your base travel insurance policy and increases the cost, it can provide peace of mind. It allows you to cancel your trip for any reason and receive a partial refund, usually between 50% to 80% of your trip cost. This coverage is especially relevant if you consider your trip a once-in-a-lifetime opportunity and want the flexibility to cancel without losing all your money.
It is worth noting that Clark Howard recommends using independent sites like InsureMyTrip for purchasing travel insurance instead of buying it directly from airlines or travel websites.
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Frequently asked questions
Money expert Clark Howard generally advises against buying airline insurance. He recommends buying separate trip insurance policies for each aspect of the trip. However, he suggests buying insurance for certain types of trips, especially expensive international trips or cruises.
Clark Howard recommends InsureMyTrip, a travel insurance comparison site that allows you to see policies from multiple companies. He also suggests checking if your credit card provides travel insurance.
Annual travel insurance is worth considering if you travel frequently. It saves money and time by providing coverage for multiple trips within a year. Most standard annual travel insurance policies cover baggage delays, lost or stolen bags, emergency medical care, and emergency medical evacuation.
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