Berkshire Hathaway Travel Protection Launches AirCare™ Abroad

Berkshire Hathaway Travel Protection, part of Berkshire Hathaway Specialty Insurance, has announced that AirCare™, the low-cost, fixed-benefit flight-protection coverage introduced last year for US domestic flights, is now also available for US residents flying internationally. AirCare™ Abroad will be made available directly to consumers through the company's website, call center and award-winning mobile app, as well as through travel suppliers and agents, up to 24 hours prior to a flight's departure.

According to the Department of Transportation, 2014 was one of the worst years for flight cancellations since 2007. Nearly four percent (69,257 flights) of U.S. flights were cancelled, compared to 1.8 percent in 2013. This year there have been nearly 50,000 flight cancellations, or 2.54 percent of all U.S. flights. According to FlightStats, in just the last 30 days there have been more than 35,700 flight cancellations around the world – including nearly 9,000 in the United States this July alone.

In response, Berkshire Hathaway Travel Insurance has enhanced both its domestic AirCare™ product and the just-launched AirCare™ Abroad with flight-cancellation coverage to compensate customers when a carrier cancels their flights.

"With the strong dollar, more Americans are travelling internationally, and we're pleased to offer a new version of AirCare™ designed specifically to meet the needs of the international traveler," said Dean Sivley, president of Berkshire Hathaway Travel Protection. "As travelers continue to experience increasing flight cancellations due to an air system that appears to be stretched to its limits, we are also pleased to come to their rescue with our newly enhanced AirCare™ products that include travel assistance and our new flight-cancellation coverage for both domestic and international flights. This will ensure that our customers are protected and compensated for the most common yet most annoying disruptions wherever they travel."

AirCare™ Abroad is priced starting at $46 per round trip, per person. The policy pays $250 for flight cancellation, $50 for a delay of two or more hours and $1,000 for a tarmac delay of two or more hours. A baggage delay of more than 12 hours pays $500, and a baggage loss pays $1,000.

Domestic AirCare™ is offered starting at $34 per round trip, per person. The domestic policy pays $150 for a flight cancellation, $50 for a flight delay of two or more hours and $1,000 for a tarmac delay of two or more hours. If travelers miss their connection (only available on domestic routes) they will receive a payment of $100. If a traveler's baggage is lost or delayed for more than twelve hours, they will receive $500.

Both AirCare™ products include proactive travel-assistance solutions through MyAssist™, a global assistance and concierge service.

In addition, both AirCare™ products will feature an industry first. In addition to electronic claims processing and fast, direct-deposit payment straight to a bank account or PayPal, customers now have their claims paid directly to any U.S. debit card. Insurance claims are made in real time. Travelers can access their payments directly from their accounts moments after the claim has been processed and approved.

Travelore Tips: Spend $25 To Stop Worrying About Flight Delays Or Cancellations With A Flight Protection Plan Called AirCare

© STEVE PREZANT/CORBIS

Few travelers would want to relive last winter’s record level of flight cancellations and delays—by all accounts, it was a nightmare season for frequent fliers. But if future seasons are as turbulent, there’ll be at least another form of protection: A new type of travel insurance launching today is designed to ensure that put-upon fliers can get relief without having to depend on an airline to deliver it.

The flight protection plan, called AirCare, is a novel take on conventional travel insurance policies, which typically are designed to cover individuals who might have to cancel big ticket trips, like tour packages or cruises, for medical or other emergencies. But AirCare’s protection is designed exclusively for airline-related snafus. For a fee of only $25 per trip (payable up to an hour before departure), the traveler qualifies for an immediate payment for an array of flight horrors, starting with $50 for a delay of more than two hours. The payment rises in proportion to the inconvenience: For a missed connection caused by a flight delay, you get $500; ditto for luggage that’s delayed for more than 12 hours. For fliers stuck on the tarmac for more than two hours (one hour less than the federally mandated trigger for penalties on the airlines), you get $1,000. While some airlines do offer partial refunds or vouchers for some of these circumstances, the AirCare protections are in addition to whatever the airline eventually ponies up—assuming they do at all.

The plan is offered by Berkshire Hathaway Travel Protection, part of a larger insurance company under billionaire Warren Buffett’s vast umbrella of investments. The travel insurer is headed by John Noel, who founded Travel Guard and is a well-known figure in the field. In an interview, Noel described the new venture as a “real game-changer,” saying that the goal is to keep it “simple and inexpensive,” offering protection for situations that rarely get covered. "We're starting a whole new industry," he notes. Although the program currently extends only to domestic travel, plans are afoot to offer protection for international flights; a more extensive suite of services are also available for an extra fee. You can also download a mobile app (for iOS and Android devices) for easy access when you’re inevitably stuck at the airport.

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Contributed by Barbara Peterson, www.cntraveler.com