It’s been kind of a crazy summer for air travel. Flights late last week were disrupted (that’s putting it mildly) by an ill-fated software update. There’s also been all kinds of crazy weather causing flights to divert — and not continue until the next day.
I also see and hear stories of people getting stuck overnight (or for days) because of airline operational issues.
For reasons like these, I purchase an annual travel policy and am mindful about which credit cards I use to pay for trips.
I use Allianz. My wife, daughter and I are on the plan. I like the annual plan because it covers everyone on the policy and every trip we take. If my wife goes out of town with friends or visits family, she’s covered. Plus, we don’t have to go through the hassle of signing up for it each trip. (And that would be more expensive than an annual policy, too.)
Like all insurance policies, it’s one of those things that you don’t like paying for — but then are suddenly grateful when you really need to use it. René had to use his policy when a cruise switched ports. Allianz was also great during the COVID-19 pandemic.
The Peace of Mind is Worth It
When I nearly missed a flight home this past January, I wasn’t worried about affording a place to sleep that night. I was more concerned about missing work the next morning.
Whenever I travel — especially with my family — and something looks like it might go sideways because of weather delays or some other problem, I don’t panic anymore. There are two reasons for that.
First, panicking doesn’t solve anything — especially when things are out of your control. (It took me years of experience and therapy to learn that!)
More importantly, I’m usually backed up by paying at least part of the airfare with my Chase Sapphire Reserve® card. I don’t have a choice when redeeming a Delta Companion Certificate, though. But that’s OK because the The Platinum Card® from American Express — the card I use for those purchases — has good trip interruption coverage. (Eligibility and Benefit level varies by Card. Terms, Conditions and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details.
Underwritten by New Hampshire Insurance Company, an AIG Company.)
I know that if I get stuck overnight somewhere, I can probably get a hotel, transportation there and back to the airport, buy some food and essentials, and claim most (if not all) of it on my travel insurance or Chase Sapphire Reserve®
That is an amazing peace of mind.
My Family is Injury Prone
We call my side of the family “The Clumsy Carleys.” If there’s a freak way for us to get injured, we’ll find it. (I sliced open my thumb a few weeks ago while mishandling an open can of mushrooms. One of my stepbrothers said that’s my punishment for not using fresh mushrooms.)
I tripped over my suitcase in a hotel hallway a few years ago — and fractured my wrist.
That was before I had travel insurance. (“You should read your blog,” René snarked to me. “I talk about travel insurance there.”) My health insurance handled a decent amount of the urgent care visit cost. But a travel policy could’ve helped with copays both at the clinic as well as the follow up visit with a hand doctor when I returned home.
I once had such awful stomach issues that I was taken to an emergency room while out of town. The staff thought it was appendicitis. After several tests, we learned it was probably just food poisoning. Again, my primary insurance covered some of the E.R. visit and tests — but I was on the hook for hundreds of dollars in copays.
Years of travel insurance policies could’ve been paid for by that E.R. visit alone.
My daughter inherited my knack for getting injured, too.
My dad has been to so many urgent cares and emergency rooms around the world; I’m stunned there aren’t any hospitals named after him.
Final Approach
Operation meltdowns and bad weather can wreak havoc on our travels. Travel insurance can help pay for expenses not covered by airlines. It’s one of those things we don’t know we need — until we really do.
Do you purchase any travel insurance plans?
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I do. Thanks to the tip from Rene some years back.
Sometime I travel as a standby passenger as I get benefits from offspring that is a flight attendant. I am curious to know if a travel insurance company would allow me to use the benefits if I was not on a regular purchased ticket. I absolutely would not expect or try to use benefits for a “missed” flight. More so want peace of mind for healthcare emergencies as my husband and I age. Anyone that can offer advice?
Hi Chris
Does the Allianz yearly policy provide primary or secondary emergency medical coverage?
Hey, Greg. It’s secondary.
I’ve had an annual policy for many years, although I’m not sure why. They always deny any claim based on obscure reasons not mentioned in the contract.
@Joe – Reach out to Chris Elliotts team. They are remarkable and get results! https://elliottadvocacy.org/
Sounds like a plan
@Chris – Thank you for the insightful post. It’s crucial to be mindful of the payment cards we use for travel bookings, including car rentals. Personally, I’ve relied on Squaremouth for short-term international travel insurance. However, I’ll definitely explore Allianz for longer-term coverage. After all, unexpected accidents can happen anywhere, like a moped-crosswalk incident in Rome. Look right, look left, look right again.
This is based on a true story… A close friend does not have dental insurance. He has both the Chase Sapphire Reserve® and the Allianz Annual Travel Policy (at little over $200 per year). He was recently on a 65 days cruise. While the ship is sailing between Indonesia and Hong Kong, one of his teeth broke off leaving part of the root in the gum. It was at least 5 days before he would see land. Fortunately, the ship has a fully licensed dentist. He receive oral surgery and other procedures to remedy his issue. The total bill was over $1700. First, he submitted the bill to Allianz; and they paid $750 (this was the max covered amount) of the bill. It took less than 4 week from initial filing to payment received; and it was VERY EASY because he has all the required documentations. Then he submitted to Chase Sapphire Reserve® because he paid the cruise with Chase Sapphire Reserve®. Chase paid him back the remainder of the bill minus $50 deductible; and the whole process with Chase took about 2 weeks. No questions asked!!! If he had this dental issue occurred at home, he would have to pay for the whole dental bill himself because he has no dental insurance. In this case, his was only out $50!!!
PRO-TIP: When buying annual insurance, MAKE SURE YOU KNOW THE MAX LENGTH of the covered trip (From the day you leave home to the day you return). Remember, insurance companies are there to make money, NOT TO PAY YOU. They will deny you coverage whenever they find a reason to do so even if your trip is just one day more than the coverage length of the trip.
Maybe I just need to be a full-time digital nomad and rely on Allianz and Chase for my insurance! 🙂