Travel Insurance: Peace of Mind for Sale

As the airline industry gasps for air in the midst of rising oil prices and a slowing economy, it can often seem that air travel is moving backwards. Massive budget cuts and downsizing have led to fewer planes, personnel and promotions at airlines across the board. Recent desperate efforts to make ends meet have had many airlines updating their baggage policies—some charging for even the first checked bag and boosting the fees for oversized or overweight luggage—and in one case, even charging for soft drinks.

Nonetheless, some of the air travel industry’s economic stimulus schemes may actually help you—as long as you’re willing to pay for them. Specifically, I’m talking about  “delay insurance” and other types of travel protection offered by insurance companies, credit card companies, travel booking companies and (of course) the airlines themselves. If you have to overnight it due to a flight delay, delay insurance will pay for meals, accommodations and other expenses for a relatively low premium.  Of course there are spending caps, both daily ($100 - $200) and “per trip” ($400-$1000), but the policies usually only cost $10 or $20 a ticket.

This insurance-selling frenzy could mean many things to the frequent traveler, most notably the elimination of some of the most massive headaches and life interruptions caused by travel delays. And even though the Vicodin will cost you more than the Advil, it’s probably worth it—some more expensive policies let you call a “concierge” who will look for alternative flights for you and hook you up with hotel rooms, dinner reservations or a rental car if needed.

Years ago, this type of thing wasn’t as necessary, since airlines were much more apt to give out hotel and meal vouchers to stranded customers, even when the airlines weren’t completely at fault. I was on a New Year’s Eve flight ten years ago that was canceled due to snowstorms, and my brother and I stayed at the Cincinnati Marriot, ate three huge meals and got a taxi to and from the hotel—all on Delta’s tab. Nowadays, the big boys are bigger tightwads, and you probably won’t get any help unless the delay was clearly the fault of the airline.

Travel insurance admittedly isn’t perfect—acts of God or terrorism aren’t covered, for one—but it seems like a worthwhile investment to protect your sanity, at least on peak flights during holidays or stormy seasons. Those reluctant to throw any more money to the airlines can purchase from a service like AIG Travel Guard , CSA Travel Protection or a comparison site like InsureMyTrip.com. American Express cardmembers can put AmEx delay insurance on their credit card, or you can buy less-comprehensive insurance from Expedia or Orbitz if you book through their websites. If you do decide to purchase peace of mind, just remember to shop around and be sure you know what you’re getting for your dough—all policies are not created equal.