Trips aren’t just a chance to unwind and see the world. They are also an investment. But there’s a way to protect a portion of your investment called flight insurance.
Flight insurance could be worthwhile if you want to recoup your nonrefundable airfare if you can’t go on your trip.
What Is Flight Insurance?
Flight insurance is generally a contract between you and an airline, travel company or travel insurance company. The contract specifies how and under what circumstances you’ll be compensated for the cost of nonrefundable plane tickets if your trip is disrupted.
Flight insurance that provides compensation only for plane tickets may be offered by airlines when you book a trip.
Compare & Buy Travel Insurance
What Does Flight Insurance Cover?
Standard flight insurance typically compensates you for the nonrefundable cost of your airfare if unforeseen events covered by your policy disrupt your flight.
Some basic flight insurance plans only refund your airfare if you or a family member become ill or are injured in an accident that prevents you from flying. More generous flight insurance plans provide more flexibility. Many major airlines offer full-fledged travel insurance policies that include coverage for trip cancellations, medical expenses and more.
Flight insurance policies can vary by policy type and insurer, but common benefits include:
- Trip cancellation coverage: If you need to cancel your trip because of a problem listed in your policy, trip cancellation insurance reimburses you for prepaid and nonrefundable trip expenses, which can include airfare.
- Trip interruption coverage: If you have to return home early because of a problem covered by the policy, trip interruption insurance reimburses you for prepaid and nonrefundable trip expenses.
- Flight delay coverage: You’ll receive a payment up to a certain amount if your flight is delayed by the amount of time specified by the policy. For example, Berkshire Hathaway Travel Protection’s AirCare policy pays a $50 “inconvenience fee” if your flight is delayed for at least 120 consecutive minutes.
- Lost, damaged or delayed baggage coverage: Baggage insurance reimburses you the depreciated value of lost baggage, up to your policy limit. Baggage delay benefits provide compensation for extra expenses you incur if your luggage arrives late.
- Travel assistance: This offers you 24/7 assistance in making other travel arrangements and other problems you may encounter.
Some common problems covered by flight insurance sold by travel insurance companies can include:
- A terrorist event within proximity to the city you are traveling to.
- An unexpected injury or illness before your departure.
- A mid-flight diversion that forces you to arrive at a different airport.
- Death in your family or of your traveling companion.
- Flight cancellations caused by bad weather conditions, like storms and blizzards.
- Unexpected flight delays that cause you to miss a connection, like equipment failure.
What’s Not Covered by Flight Insurance?
Basic flight insurance policies typically don’t have:
- Emergency medical and dental coverage: Travel medical expense coverage reimburses medical or dental costs for injuries and illnesses covered by the policy while traveling.
- Emergency medical transportation coverage: Medical evacuation travel insurance reimburses and arranges necessary medical transportation following an accident or illness covered by the policy.
- Missed connection coverage: Missed connection travel insurance compensates you for costs incurred from missing a flight, cruise or other transportation connection due to an unexpected event covered by the policy.
How Does Flight Insurance Work?
When you buy an airline ticket, flight insurance is usually offered directly from the airline or from other companies such as Expedia or Travelocity.
You can also buy flight insurance from travel insurance companies as part of a comprehensive travel insurance plan. Some travel insurance companies also sell stand-alone flight insurance policies.
Flight Insurance from Delta, American Airlines and United
Delta and American Airlines offer comprehensive flight insurance through a partnership with Allianz Travel. This policy includes benefits like trip interruption, trip cancellation, trip and baggage delay coverage, and travel medical insurance for international trips. United, Expedia and Travelocity also offer standard travel insurance through AIG, which sells Travel Guard policies.
Standard travel insurance policies with pre- and post-departure benefits compensate you for trip costs, including non-refundable plane tickets, if you cancel a trip for reasons covered in your policy.
Flight Insurance Plans for Air Travel Inconvenience
Some travel insurance companies sell policies with limited coverage designed for flight inconveniences. These policies are targeted for flight snafus and generally don’t reimburse you for airfare costs.
For example, Travelex Insurance offers a Flight Insure plan as well as a Flight Insurer Plus plan. The standard Flight Insure plan has coverage for trip delay, accidental death and dismemberment, and travel assistance. The Plus plan adds baggage coverage and emergency medical and dental coverage. But the Flight Insure plans don’t include flight cancellation or trip cancellation benefits, so they don’t reimburse you for airfare.
Berkshire Hathaway’s AirCare policy is designed for travel inconveniences rather than cancellations. It covers tarmac delays, flight and baggage delays, lost luggage and missed connections. If your flight is canceled, you get $150 for the inconvenience, but the policy does not cover trip cancellation or reimburse you for airfare.
With so many variations of plan coverage and benefit options, it’s smart to compare the terms and conditions of each plan before purchasing one.
Is Flight Insurance Worth It?
Flight insurance offered when you’re buying plane tickets isn’t always worth the cost. If you have many nonrefundable deposits invested in your trip—such as hotel stays and pre-paid excursions—buying a comprehensive travel insurance policy to cover your entire trip is likely a better option than flight insurance.
Still, basic flight insurance might be worth it if:
- The airfare is your only nonrefundable trip expense and you don’t have flight insurance through the credit card you booked with.
- You don’t already have the option to get a refund or credit for airfare through the airline.
How Much Does Flight Insurance Cost?
The cost of flight insurance depends on the type of policy. Your age, length of your trip and total trip cost you’re insuring can also affect what you pay. For example:
- An AIG Travel Guard international policy sold by United Airlines costs $241 for a 17-day trip for two travelers age 40. That’s for an economy class flight costing $3,325.
- A Travel Guard Preferred policy from AIG for the same trip and travelers with a total trip cost of $6,000 is about $410. That’s twice as much as the policy sold by United but it has much better limits for benefits.
Flight Insurance vs. Travel Insurance
Determining if travel insurance is worth it or which insurance option is right for you will depend on the type of coverage you need, your budget and the complexity of your travel plans.
| When flight insurance is best | When travel insurance is best |
|---|---|
| Your biggest concern is potentially having to cancel or change your flight. | You’re concerned about losing money if you have to cancel your trip but also about potentially having to cut your trip short and other issues, such as travel delays. |
| Your flight is the most expensive part of your trip. | Your trip costs are significant and you can’t afford to lose your prepaid, non-refundable trip costs. |
| You’re traveling within the U.S. where your health insurance benefits will apply. | You’re traveling outside of the U.S. and need coverage for medical costs if you’re sick or injured during your trip. |
| Your trip doesn’t involve multiple connections. | Your trip has multiple connections, which will increase the chance of travel and baggage delays. |
| Your trip doesn’t involve non-refundable hotel stays or prepaid activities and excursions. | Your trip involves non-refundable expenses such as hotel rooms. |
How Do I Get Flight Insurance?
Here are the different types of flight insurance and ways to buy it:
- Buy a policy from an airline or travel company that compensates you for nonrefundable plane tickets when a trip is canceled.
- Buy a standard travel insurance policy with robust benefits through a partnership between your airline and a travel insurance company or through a travel company and a travel insurance company.
- Buy a travel insurance policy from a travel insurance company with benefits for air travel issues, such as flight and baggage delays and missed connections.
Compare & Buy Travel Insurance For 2024
Compare Quotes With Over 22 Travel Insurers
Flight Insurance Frequently Asked Questions (FAQs)
What’s the difference between trip cancellation insurance and flight insurance?
The difference between trip cancellation insurance and basic flight insurance is the scope of coverage. Though you can find more generous policies with additional benefits, a basic flight insurance plan generally reimburses just the cost of your nonrefundable plane ticket if you’re forced to cancel a trip. If you’re unable to take a trip due to an unforeseeable event, trip cancellation insurance reimburses you 100% of your prepaid, forfeited and nonrefundable trip costs, which can include tours, excursions and hotel stays.
When should I buy flight insurance?
You should buy flight insurance when you purchase your plane tickets. That way you get the maximum length of coverage time for trip cancellation benefits. If you’re purchasing travel insurance, there are other advantages to getting travel insurance when you book your trip. You can qualify for upgrades, such as “cancel for any reason” travel insurance and pre-existing medical condition exclusion waivers.
Can I cancel my flight insurance?
Yes, you can cancel flight insurance, though the specifics vary by insurance company and policy. For example, flight insurance through Travelocity and Expedia can be canceled before the start of your trip, up to 15 days after booking, as long as you haven’t filed a claim. Some of their policies may also provide flexibility to cancel outside of the 15-day time period.
Most travel insurance companies allow 14 or 15 days for you to review the policy and request a refund if you change your mind.