Last updated on 03/27/2023
Airline Ticket Protection Explained
Flight insurance is a coverage option that is most often available as an add-on when booking an airline ticket, either from an airline directly or through a third-party site, like Expedia or Priceline. Flight insurance is a “light” type of coverage due to the lower plan limits compared to other options. Every insurance plan, including flight insurance, has a certificate that outlines what may be covered regarding unexpected events and the maximum value of the coverage. Collectively, this certificate describes the plan limits.
What Does Flight Insurance Cover?
For most flight insurance plans, the coverage is limited to unexpected events related to your air travel. In general, this type of policy covers flight delay, trip cancellation or trip interruption, and lost, damaged, or stolen luggage up to the plan limit. It also covers you if you’re not able to fly due to a documented medical reason on the date of your trip. Keep in mind that since the limits are low, it may leave some gaps in coverage.
How Does Flight Insurance Work?
One of the most important things to know when considering flight protection is that any benefits are secondary to what you might receive in compensation directly from the airline. In the case that conditions required the delay or cancellation of your flight, or you had a claim regarding lost or stolen baggage, you would be required to file a claim with the airline first for compensation under the “contract of carriage” that is part of your ticket booking and outlines how the airline must refund or compensate you above your ticket cost in various situations. Your flight insurance policy would then cover any difference between what the airline compensated you and the limit of your policy.
How Much Does Flight Insurance Cost?
The cost of flight insurance varies by the provider, whether it is offered by a third party or the airline itself. Although the cost may be very low compared to the cost of a flight, we’ve discussed previously in this article why you may want to consider comprehensive travel insurance instead. With comprehensive travel insurance you can insure all of your pre-paid, non-refundable trip costs for an average cost of 4-10% of your total trip cost. For example, a couple in their 50s traveling to Ireland for a ten day trip costing $5000 could insure their trip with a comprehensive plan starting at around $180, depending on the exact limits and exclusions in the plan.
Should I Get Flight Insurance?
While the cost of flight protection is low compared to other types of coverage, it’s important to consider the parts of your trip that come after your flight. If you have made a significant investment in your travel arrangements, flight insurance may leave you with some coverage gaps due to the relatively lower maximum value and narrower range of covered events. If you have trip costs related to a pre-booked excursion or non-refundable hotel costs, your total trip cost may easily exceed the plan maximum of airline insurance. It’s a good idea to consider other travel insurance coverages so that you can choose a plan fit your specific needs.
Since comprehensive travel insurance may offer higher limits on maximum plan value and a broader range of benefits, you can insure your whole trip including your flight. For example, if you are injured while on your trip, comprehensive travel insurance may provide reimbursem*nt for covered medical expenses up to the plan limit, as well as coverage for transportation to another hospital if the closest one does not have adequate facilities to treat your condition, at the discretion of the insurance company and attending physician. All comprehensive plans also offer a 24-hour assistance line to travelers.
Travel Insurance & Drone Disruptions
When it comes to compensation, travelers can request compensation from the airline if it was delayed or canceled due to a security threat, like drones. However, in the case of these types of disruptions, the closure is often beyond the airlines’ control and compensation is not required.
Travelers that purchased travel insurance can also file a claim to request compensation in the event a delay caused added expenses like a hotel stay. It is still unclear how some travel insurance companies may process claims related to these types of events. However, most companies do offer travel delay coverage for any common carrier delay. A few specific plans also will cover a trip cancellation in this scenario, as long as the reason for the airport closing was due to a documented security breach.
Disclaimer: The information contained in this article serves as a general overview of benefits and should only be used for informational purposes. Refer to your individual certificate of insurance for specific coverages, exclusions and benefits. When in doubt, please contact one of our licensed agents for additional assistance.
FAQs
In general, this type of policy covers flight delay, trip cancellation or trip interruption, and lost, damaged, or stolen luggage up to the plan limit. It also covers you if you're not able to fly due to a documented medical reason on the date of your trip.
What does cancellation insurance cover for flights? ›
A trip cancellation plan provides coverage if your trip is cancelled for a covered reason before you depart for your trip. The benefits could include reimbursing you for the cost of non-refundable travel expenses, like trip deposits and flight change fees, if your trip is cancelled because of a covered cause.
What does flight delay insurance cover? ›
You're covered when your flight is delayed beyond a certain time period. You may be reimbursed for reasonable and necessary expenses including sundry items, meals and refreshments, and accommodations. Many insurance policies also outline accepted causes for the delay.
Does travel insurance cover flight cancellations or delays? ›
Comprehensive travel insurance typically covers canceled flights that delay your trip for at least 3–12 hours. If your flight is delayed more than 12 hours, you may even qualify for trip cancellation coverage, depending on your plan.
What is a covered reason to cancel a flight? ›
The most common covered reason is unforeseen illness, injury, or death of the traveler, a traveling companion, or a non-traveling family member. Other common covered reasons include terrorism, inclement weather, or a natural disaster, among others.
Does flight insurance give you a full refund? ›
It provides up to a full refund of your prepaid, nonrefundable costs if you need to cancel a trip for a specific, unforeseen covered reason. Common travel insurance plans will cover reasons such as a death in the family, common carrier-related issues, or an unforeseen natural disaster.
Is it good to get trip cancellation insurance? ›
There are a few reasons that travel insurance can be worthwhile: to protect your nonrefundable trip costs, your luggage or your health.
How much can you get compensated if your flight is delayed? ›
The amount of flight delay compensation United States travelers can claim varies. There's a maximum of $650 (excluding accommodation and food costs, which airlines may have to cover). But even short delays can incur penalties of $200 or more.
Can I claim flight delay from airline and insurance? ›
If you're delayed overnight, the airline should pay for accommodation, meals and transfers. If you need to book another flight urgently, your insurance may cover the difference in cost if it's more than the original ticket.
What qualifies for trip cancellation? ›
Trip cancellation insurance provides prepaid, nonrefundable reimbursem*nt for trip expenses if you must cancel a trip due to an unforeseen circ*mstance such as illness, injury, or the death of the traveler or a loved one.
Covered reasons vary by policy and provider so be sure to read the covered reasons before purchasing a policy.
- Injury or Illness. ...
- Death. ...
- Natural Disaster. ...
- Acts of Terrorism/Evacuation. ...
- Financial Default of the Travel Company.
- Death or Hospitalization of Host.
- Residence Damage. ...
- Jury Duty or Military Deployment.
Cancellation cover is a common inclusion with most standard travel insurance policies, but you can take it out separately if it doesn't offer enough cover. Alternatively, if you only want cancellation cover to protect you against cancelled flights rather than baggage protection, you can get it for that.
What are you entitled to if an airline cancels your flight? ›
If an airline cancels your flight less than 14 days before departure and you choose to cancel your trip entirely, you're entitled to a refund of both your plane ticket and any pre-paid baggage fees (in most cases). This typically applies even if you have non-refundable tickets.
What happens if my flight gets Cancelled without insurance? ›
If your flight gets canceled the airline is responsible for everything, you don't need your own insurance for that. If you need to stay in a hotel the airline will pay for that, they'll either arrange a hotel room for you or they'll reimburse you for it.
What are valid medical reasons for flight cancellation? ›
The unexpected death, illness, or injury of you and/or a traveling companion that deems you unfit to travel, by order of a licensed physician. The hospitalization or death of a non-traveling family member.
What protection do I have if my flight is Cancelled? ›
If your flight gets cancelled by the airline, you are entitled to receive either a full ticket refund or a new flight. If the flight is cancelled after you have already arrived at the airport, you are also entitled to care.
What does cancellation travel insurance cover? ›
You can usually claim back the cost of your tickets to travel, plus accommodation for the time you should have been on holiday. So, if you were unable to travel at all, you can claim back the entire cost of your portion of the holiday, less the excess on your policy, up to a certain amount.
What am I entitled to if they cancel my flight? ›
If an airline cancels your flight less than 14 days before departure and you choose to cancel your trip entirely, you're entitled to a refund of both your plane ticket and any pre-paid baggage fees (in most cases). This typically applies even if you have non-refundable tickets.
What does in flight insurance cover? ›
Some examples of commonly covered situations include the following: An unexpected illness or sudden accidental death of a family member or travel companion. Flight delays that cause you to miss a connecting flight. Inclement weather that causes your airline to cancel your flight.
