American Airlines Ticket Insurance: What's The Cost?

American Airlines offers trip insurance to residents of the U.S., Canada, and Mexico. The insurance is provided by Allianz Global Assistance and Allianz Travel Insurance, which are marks of AGA Service Company. Trip protections may include trip cancellation, trip interruption, trip delay, and coverage for lost, damaged, or stolen baggage. It is worth noting that American Airlines' travel insurance does not cover pandemic-related issues.

American Airlines Trip Insurance

Trip cancellation

Trip insurance is available to residents of the U.S., Canada, and Mexico, and insurance providers vary by country. Trip insurance can be purchased during the ticket purchase process or afterward via your online account. Trip insurance by American Airlines is provided by Allianz Global Assistance and includes single-trip, annual, and rental car protection plans.

If you cancel your trip within 24 hours of purchase, you can receive a full refund, as long as you booked at least 2 days before departure. This applies to all ticket types, but you must cancel the trip to get a refund. If you have a refundable ticket you're not going to use, you can request a refund online, and American Airlines will process your refund within 7 business days. For all other forms of payment, the refund will be processed within 20 days after receiving a complete refund request. Refund requests must be submitted while your ticket is valid (within 1 year of the ticket issue date).

If you bought your ticket through a travel agency or another booking source, contact them for a refund. Reservations booked as part of a group block do not qualify for the 24-hour refund.

Trip interruption

Trip insurance for American Airlines is provided by Allianz Global Assistance, which offers a variety of plans to fit your specific needs. Single-trip plans can protect one trip, annual plans can protect all your trips for an entire year, and rental car protection plans can keep your budget safe from accidental collision and damage to a rental vehicle.

Allianz also provides 24-hour emergency assistance to help you solve medical and other travel-related problems on the go. Their multilingual problem solvers are available to help you with medical and other travel-related emergencies.

Trip insurance by American Airlines can be a good option if you're looking for financial protection against unexpected travel issues. It provides peace of mind for those concerned about trip interruptions but might not be necessary for everyone, depending on your travel circumstances. For example, you can probably skip travel insurance from American Airlines if you purchase your ticket with a credit card. Additionally, most travel insurance policies exclude pandemic-related trip interruptions, so relying on travel insurance for pandemic concerns may not be the best option.

Trip delay

Allianz Trip Insurance comes in a variety of plans, including single-trip, annual, and rental car protection plans. Single-trip plans cover one trip, annual plans cover all trips for a year, and rental car protection plans cover accidental collision and damage to a rental vehicle.

The trip delay protection offered by Allianz Global Assistance provides meal and accommodation reimbursements if you encounter a delay of at least six consecutive hours. The maximum coverage limits vary by US state.

It's important to note that the Allianz Trip Insurance promotional offer received when booking an American Airlines ticket is only valid for that specific trip. This differs from annual or multi-trip plans purchased directly from Allianz, which cover multiple trips.

Rental car collision

When renting a car, you may be offered a loss damage waiver, also known as a collision damage waiver, at an additional cost. This is not technically an insurance policy but a waiver stating that you will not be held responsible for collision damage to the vehicle. This waiver can be bundled with a theft waiver. If you already have collision coverage on your auto insurance policy, you may be covered for collision damage to your rental car, but you should check with your insurer to confirm. If your insurance policy does not cover rental cars, you can purchase a loss-damage waiver from the rental company.

If you are a frequent traveller, an annual travel insurance plan may be a good option to protect your rental car, your baggage, and your finances. For example, the AllTrips Premier Plan includes a rental car collision damage waiver, $2,000 in baggage loss/damage benefits, and other travel insurance benefits for a 365-day period. You should also check if your credit card company offers rental car insurance, as this is a common benefit. However, credit card rental car insurance is usually secondary coverage, meaning any claims will go first to your auto insurance company.

If you do not have collision coverage and do not want to purchase a loss-damage waiver, you may be held financially responsible for any damage to the rental car. In this case, you would have to pay for the damage yourself or file a claim with your auto insurance company, which could raise your premium. It is important to carefully consider your options and choose the coverage that best suits your needs.

Baggage delay

American Airlines offers Allianz Trip Insurance, which includes baggage loss/damage coverage. This insurance reimburses you for the purchase of essential items if your luggage is delayed for more than 24 hours. It is important to note that this insurance is provided by a third party, Allianz Global Assistance, and not by American Airlines itself.

When it comes to baggage delay, there are a few things to keep in mind. Firstly, American Airlines defines a delayed bag as one that was not delivered within 12 hours for US domestic flights, 15 hours for international flights less than 12 hours, and 30 hours for international flights more than 12 hours. If your bag falls within these time frames, you can file a mishandled baggage report and request a refund for your ticket fare, including taxes and fees.

Additionally, American Airlines has specific guidelines for baggage fees and discounts. For flights within and between the US, including Hawaii, Alaska, Puerto Rico, and the US Virgin Islands, you can save on your first checked bag fees if you purchase your ticket on or after February 20, 2024. However, there are restrictions on paying for bags online, such as in cases where you are on the waitlist, standing by for another flight, or have not confirmed your new flights after a disruption.

In terms of liability, American Airlines follows the Montreal Convention and international tariffs. For international travel, including domestic legs of international itineraries, liability for lost, delayed, or damaged bags is limited to 1,519 Special Drawing Rights (SDR) per ticketed passenger. The SDR is a currency unit used by the International Monetary Fund, and its exchange rate fluctuates daily. As of the writing of the source, 1,288 SDRs were worth about $1,700.

It is worth noting that if the depreciated value of your property is worth less than the liability limit, the airline will offer you the lower amount. If their settlement does not fully cover your loss, you may want to consider purchasing "excess valuation" from the airline, which is not insurance but will increase their potential liability. Alternatively, you can check if your homeowner's or renter's insurance provides coverage for losses away from the residence.

Frequently asked questions