ST. PETERSBURG, Fla., Jan. 18, 2023 /PRNewswire/ — Travelers today are growing more cautious following mounting airline-related mishaps, including widespread cancellations, staffing shortages, system outages and the looming threat of strikes.
Before upgrading to a refundable ticket or opting into an airline’s insurance offering, travelers should consider another option: travel insurance. Travel insurance marketplace Squaremouth.com compares these offers to third-party travel insurance plans to reveal the best option for travelers.
Travel Insurance VS Refundable Tickets
Many airlines offer refundable tickets for an upcharge as much as 10x the original price. While these tickets offer attractive flexibility to cancel a flight, they don’t offer reprieve from any of the other inconveniences that can impact a trip.
According to Squaremouth’s data, only 18% of paid travel insurance claims in 2022 were for canceled flights, superseded by both Travel Delay and Emergency Medical claims.
Cost Comparison: While a refundable airline ticket can 10x the cost of airfare, a third-party travel insurance plan will only add a small percentage to the total cost. These policies typically cost up to 10% of the cost of the entire trip, and can be significantly less than the cost of a refundable ticket alone.
Benefit Comparison: Refundable tickets generally have little-to-no limitations if a flight is canceled, whereas third-party travel insurance plans include a list of reasons the trip can be canceled. However, if a traveler meets their policy’s terms, their plan can refund all trip expenses, not just the airfare.
Most third-party travel insurance policies are comprehensive, and include coverage for other travel-related inconveniences, including a delayed flight, lost bags, or if a connection is missed.
Travel Insurance VS Airline Insurance Policies
Many airlines offer the ability to opt-in to their travel insurance offering upon booking. These offer a convenient option, but often fall short in terms of benefits and pricing.
Cost Comparison: Travel insurance plans offered by airlines are not priced the same as third-party travel insurance plans, and include a predetermined percentage to be paid to the airline. In most cases, this means these plans will be more expensive than an adequate and equivalent third-party insurance plan.
Benefit Comparison: The plans offered by airlines include a very specific list of coverage, and are often less comprehensive than what is offered by third-party insurance. Airline plans typically come as a packaged deal, with little-to-no customization.
Third-party travel insurance policies include the most comprehensive list of benefits, including today’s in-demand coverage needs related to airline issues. By using a comparison marketplace, travelers can often find a more affordable option with the benefits needed for their specific trip.
Additional resources: Squaremouth regularly updates information centers about the events impacting travelers today.
About Squaremouth: Squaremouth.com has insured over 2 million travelers. Using Squaremouth’s intuitive quoting and comparison engine, award-winning support team, and verified customer reviews, travelers can save time and money to find the best travel insurance policy for their trip.
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SOURCE Squaremouth
