AirCare insurance pays cash for travel inconveniences

LOS ANGELES (KABC) -- A new travel insurance plan offers to pay travelers instantly for being inconvenienced on their way to their destination.

Billionaire Warren Buffett's Berkshire Hathaway is backing AirCare, a plan to pay passengers instant cash for delayed flights, missed connections and lost baggage.

"If your bags are lost, whatever the reason, you get instant cash," said George Hobica, creator of, a website dedicated to searching for airfares.

The insurance costs $25 for domestic flights, including round trips. It can be bought up to an hour before departure, but sales are cut off if there's bad weather.

AirCare will pays $50 if a departing or connecting flight is delayed for more than two hours, $500 if a flight delay causes a traveler to miss a connecting flight or if checked luggage is delayed more than 12 hours.

Those who are stuck on the tarmac for more than two hours or have their luggage lost get $1,000.

The rewards are also cumulative.

If your fight is delayed, then you're stuck on the tarmac and then you miss your connecting flight, you'll get $1,550 on the spot.

The money is paid instantly, wired to a bank or PayPal account.

Hobica said AirCare is good deal for many travelers.

"There are five things that are covered and I think since nobody else covers them, it's something to consider," Hobica said.

But many passengers said they probably won't buy the insurance plan.

"I'm really tired of organizations making a dollar, $2 off me in case something bad might happen," Deidre Kennedy said.

"I'm an MBA with a quantitative analysis degree and I'd say that's not a good deal. Twenty-five dollars to get you $50 is not a good deal, $25 to get $100 is not a good deal," Hank Kalwait said.

AirCare doesn't pay a dime if a flight is cancelled or if the airline announces a schedule change far in advance of departure.

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