In this recent article about travel insurance and bankrupt airlines, I discussed several key elements to consider when purchasing a plan. I have a bonus tip to add, and I think it deserves a stand-alone post.
Why you should never buy travel insurance from an airline, cruise line, or tour operator
When you decide to purchase insurance for your trip, you are entering into a contract with an insurance company. You are promising to pay a certain amount of premium, and they are promising to pay you under certain circumstances (a claim).
In the case of travel insurance, you should always purchase from a third party. Even though your cruise line, airline, or tour operator offers you insurance, it is not the same as purchasing it independently.
Insurance purchased from a travel supplier may not cover financial default (bankruptcy)
There has been a string of airline bankruptcies recently, causing many travelers to shop for travel insurance. For travelers who purchased a plan through their travel supplier, however, there might not be coverage for this situation. Many insurance plans offered by travel suppliers do not cover bankruptcy and financial default.
Always purchase travel insurance from a third party source
It is always wise to purchase travel insurance from a third party source who will provide coverage in the event of bankruptcy, when airlines or other travel suppliers stop service. Don’t be left without coverage when you need it.