Is American Airlines travel insurance worth buying?


American Airlines travel insurance is sold through Allianz and can be purchased when you purchase travel with AA. The AA travel insurance policy offers coverage similar to other plans, but also has exclusions. COVID-19-related trip interruptions are not covered by American Airlines travel insurance plans.

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UPDATED: 2022-01-05T21:55:27.615Z
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Travel insurance

What You Should Know

  • American Airlines travel insurance is sold when you purchase travel from AA
  • Travel insurance policies are underwritten by Allianz, a major insurer
  • American Airlines travel insurance excludes travel delays due to COVID-19

Traveling can be stressful, despite the relaxation and excitement that a vacation can bring. You have to get to the airport on time, deal with the crowds at security, and keep all of your belongings secure. At the same time, you have to prepare for the possibility of trip interruption, such as a canceled flight or lost baggage.

That’s why coverage like American Airlines travel insurance provides the option to add travel insurance to your purchase. And at first glance, travel insurance to cover you for your vacation may seem like a sensible purchase.

Between the bustling environment of the airport and uncontrollable factors like weather, there are many places where you can run into obstacles along your journey. American Airlines travel insurance, like similar plans, promises to help you get around those obstacles.

But is American Airlines travel insurance actually worth buying? Unfortunately, the short answer is usually no. In fact, AA’s policy may specifically exclude the very event you’re concerned about. In this guide, we’ll cover the ins and out of American Airlines travel insurance cover so that you can make an informed decision.

Before you read more about American Airlines travel insurance, enter your ZIP code to compare travel insurance rates from top companies today.

What protection does American Airlines travel insurance offer?

Like other travel insurance policies, American Airlines travel insurance is advertised as a necessity for every traveler. It's provided through a major travel insurance company, Allianz.

But before you click “purchase,” let’s look into what this policy really covers.

An American Airlines travel insurance policy addresses a number of ways travel insurance will cover your vacation. These situations include:

Circumstances impacting your travel – In the cases of illness, job loss, extreme weather, or other extenuating circumstances, travelers who purchase American Airlines travel insurance may receive financial coverage of changed plans or trip cancellation.

Cancellations – If your flight is canceled, American Airlines travel insurance may reimburse some of your expenses.

Lost luggage – A suitcase missing at baggage claim is a nightmare for any traveler. Travel insurance could potentially cover the cost of essential items you may need to purchase at your destination if your luggage is lost or delayed in transit.

Injury or illness – If you sustain an injury or require medical attention during your trip, travel insurance can provide you with emergency medical and dental benefits in some cases.

Damage to your rental car – Accidents can happen even when you’re on vacation, and it can be especially difficult to resolve legal and insurance matters when you get in an accident while driving a rented vehicle. American Airlines travel insurance could help you cover any damage to your rental car if your auto insurance policy only covers the vehicle you own. Keep in mind that, just as with regular auto insurance, exclusions apply.

Theft – What happens if your rental car is stolen? American Airlines travel insurance can help you work through this stressful situation by providing theft coverage.

Airport employees are always doing their best to serve you, but long lines and complicated logistics can nonetheless make for a frustrating experience when problems arise.

American Airlines encourages customers to purchase travel insurance by offering a streamlined customer service experience. In addition to the coverage above, American Airlines also advertises the additional perk of “24/7 assistance hotline and concierge services” for customers who opt for travel insurance.

All of these offerings combine to depict a streamlined and protected travel experience.

But how accurate is this depiction, and is this travel protection worth the cost? Read on to dive deeper into the world of travel insurance.

How do I know if a travel insurance policy is worth it?

You’re not legally allowed to drive without auto insurance, so does it follow that you should never be caught in the airport without travel insurance?

Not necessarily.

Sure, any number of scenarios could unfold and derail your travel plans. Insurance exists to protect you in the event of these what-ifs—accidents, illnesses, and so on.

However, travel insurance policies aren’t always as beneficial to the customer as they may seem. Airlines take a large percentage of the profit from every insurance purchase, so it benefits them to market it to their customers as more essential than it is.

With travel insurance, you may end up saving money in the case of flight cancellation or inclement weather.

But consider your past travel history—most of the time, everything runs smoothly. You get where you’re going without spending money on insurance.

Even if your journey does hit a roadblock or two, the policy may still not be your most economical option. When you dig deeper into the scenarios that travel insurance policies actually cover, you can expect to find many limitations and exclusions. As a result, the coverage may not apply to your situation at all. And of course, these exclusions are nestled deep within a downloadable, 19-page PDF.

Travel Insurance Exclusions Explained

Are you worried about the possibility of extreme global circumstances throwing a wrench into your perfectly planned vacation? In a COVID-19 world, that’s not an irrational fear.

While we live in an unpredictable world, it’s important to understand that travel insurance may specifically exclude the very situation you’ve been nervous about.

  • Exclusions in American Airlines travel insurance policy include:
  • Epidemics
  • Natural disasters
  • Pollution leading to grounded or delayed flights
  • Nuclear and radioactive events
  • War
  • Terrorism
  • Civil unrest
  • Government bans on travel

While these circumstances may sound extreme, less extreme conditions such as standard rain or snow will usually not alter your travel plans to the point where travel insurance would prove beneficial.

Travel Insurance and Medical Care

Maybe you’re worried about your health delaying your plans or causing you trouble once you arrive at your destination.

American Airlines’ policy also names many exclusions on when they will provide health coverage, including:

  • Pre-existing medical conditions
  • Pregnancy, fertility treatments, and childbirth
  • Mental health issues including self-harm
  • Health issues accompanied by alcohol or drug use
  • Problems stemming from training and competition in professional or amateur sports

Whether your condition is pre-existing or you start to feel sick after consuming a few too many airport martinis, there are many scenarios where your health needs will not be covered by travel insurance.

Additionally, even though many mental health disorders can lead to or cause physical ailments, travel insurance offers no coverage for them.

If you would like to account for potential health issues during travel, be sure to do your research to make sure the policy covers your areas of concern.

American Airlines Travel Insurance and the COVID-19 Pandemic

We’ve already talked about one major exclusion—epidemics.

Of course, we’re continuing to live with the global results of a pandemic. The coronavirus outbreak has introduced a new level of uncertainty to the travel industry, with increased regulations and safety measures impacting flight schedules and airline ticket availability. Does travel insurance cover you for the coronavirus?

This uncertainty around travel may make travel insurance seem like a reasonable step to take. If your flight is canceled or rescheduled, you don’t want to be left in the dust.

However, American Airlines’ travel insurance does not offer protection against issues caused by the pandemic.

How do other policies stack up? Unfortunately, the Consumers Checkbookexplains that “most travel insurance policies specifically list epidemics and pandemics as general exclusions, which means if you buy one of these policies you aren't covered if you cancel or interrupt your trip due to an outbreak.”

You certainly want to handle travel with care and precision. However, travel insurance may not be the best way to do so.

Your best bet is to arrive at the airport early to give yourself ample time to sort out any issues. In addition, pay attention to safety protocols to protect your health and the health of your fellow travelers.

Broad American Airlines Travel Insurance Exclusions

American Airlines goes even further to shift the responsibility onto the individual and avoid covering losses.

They list the broad exclusion of “any loss, condition, or event that was known, foreseeable, intended, or expected when your certificate was purchased.”

Intent can be a hard thing to prove. Given the wording of these exclusions, it appears that American Airlines has broad discretion to avoid payouts on travel insurance.

A 2018 study on travel insurance by the office of Senator Edward Markey—aptly titled the Flyer Beware Report—reports, “The airlines and OTAs aggressively market these insurance policies as providing total trip protection, but travelers who purchase these insurance policies through airline or OTA websites may get much less coverage—and security—than they are led to believe.”

What other travel insurance options do I have?

Senator Markey’s study suggests that seeking out third-party travel insurance may be more advantageous than purchasing a policy directly from your air carrier.

Just because you want to stay protected while you travel doesn’t mean you need to buy the policy offered by the airline. Remember: you are in control of the insurance that you obtain. Despite what your airline tells you, there are other options out there.

Compare American Airlines Travel Insurance With Other Options

The travel insurance market can be a tricky one to navigate. Different providers attempt to pull you in different directions and persuade you to buy their products. Unfortunately, they may be prioritizing their profits over your best interest.

Don’t fall victim to these business practices and end up with an expensive insurance policy you don’t need. Instead, shop around and compare quotes on travel insurance before you buy. If you’ve done your research ahead of time, you won’t feel compelled to purchase American Airlines travel insurance when you buy your tickets unless you’re sure it’s what you need.

Hopefully, you've learned what you need to know about American Airlines travel insurance. Now compare your travel insurance options with free quotes when you enter your ZIP code below.

References:

  1. https://www.checkbook.org/san-francisco-bay-area/travel-insurance-what-should-you-buy/
  2. https://www.markey.senate.gov/news/press-releases/flyer-beware-is-travel-insurance-worth-it
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