Is Flight Insurance Worth It? (2024)

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 and you have no other type of travel insurance.

What Is Flight Insurance?

Flight insurance is generally a contract between you and an airline, travel provider or travel insurance company that specifies how and under what circ*mstances you’re compensated for the cost of nonrefundable plane tickets if your trip is disrupted.

Flight insurance can refer to coverage you buy from an airline or travel provider when you book a trip that refunds your airfare if you’re unable to fly due to an emergency, such as an illness or injury. These bare-bone policies typically provide no other benefits. But there are other types of flight insurance coverage you may encounter when planning air travel.

Here are the different ways flight insurance is sold:

• A policy you buy from an airline or travel provider that compensate you for nonrefundable plane tickets when a trip is canceled.
• A standard travel insurance policy with robust benefits you buy through a partnership between your airline and a travel insurance company or through a travel provider and a travel insurance company.
• A travel insurance policy with benefits for air travel issues, such as flight and baggage delays and missed connections.

When you buy an airline ticket, flight insurance is usually offered as an add-on directly from the airline, or from other companies such as Expedia or Travelocity. Flight insurance that provides compensation for plane tickets only may be offered by smaller airlines when you book a trip. Many major airlines offer full-fledged travel insurance policies that include coverage for cancellations, medical expenses and more.

You can also buy flight insurance from travel insurance companies as part of a comprehensive travel insurance plan. Some travel insurance companies sell stand-alone flight insurance policies. These typically don’t include cancellation coverage, which reimburses airfare but instead provide benefits for inconveniences, such as tarmac and flight delays, and may include travel medical expense 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 may 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.

Some common problems covered by flight insurance 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.

While flight insurance policies can vary by plan type and insurer, there are a few common benefits that may be included in some flight insurance plans:

• 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 for lost or delayed baggage, up to your policy limit. For example, a Flight Insure Plus plan from Travelex Insurance Services provides $1,000 in coverage per person for baggage and personal belongings.
• Travel assistance: This offers you assistance in rebooking your flight itinerary or making other travel arrangements.
• Trip cancellation coverage: If you need to cancel the flight because of a problem listed in your policy, trip cancellation insurance reimburses you for prepaid and nonrefundable trip expenses.
• 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.

What’s Not Covered by Flight Insurance?

Basic flight insurance plans offered by airlines typically lack certain coverage types that you might get with a comprehensive travel insurance policy.

Comprehensive travel insurance policies have more robust coverage options which can include:

• 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?

Basic flight insurance works by compensating you for nonrefundable airfare according to the terms of the policy. Each policy can drastically vary, so it’s important to read the fine print before you buy.

Flight Insurance from Small Airline Companies

For example, Allegiant offers flight insurance called Trip Flex. With Trip Flex, travelers can change flight itineraries and postpone their travels up to 24 hours before departure with no additional fees. You can also modify your air ticket portion of your itinerary up to an hour before departure.

But check out the fine print. If you don’t cancel your full itinerary within 72 hours of your departure, it’s nonrefundable, meaning you won’t get reimbursed for your remaining package items such as hotels, activities and car rental. Trip Flex also has other restrictions, such as special flight promotions and sales, and holiday travel dates.

Flight Flex, similar to Trip Flex, is offered by Spirit. It allows you to modify your flight up to 24 hours prior to departure for no charge, and only applies to cancellations and airfare changes.

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.

Some travel insurance companies also sell policies with limited coverage designed for flight inconveniences. The policies targeted for flight snafus differ from other types of flight insurance in that they generally don’t reimburse you for airfare costs.

Flight Insurance Plans for Air Travel Inconvenience

For example, Travelex Insurance offers a Flight Insure plan as well as a Flight Insurer Plus plan. The standard Flight Insure plan offers trip delay, accidental death and dismemberment coverage and travel assistance. The Plus plan offers that and 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, excursions and tours—buying a comprehensive travel insurance policy to cover your entire trip is likely a better option. You get more substantial coverage with a comprehensive policy, especially trip cancellation and medical evacuations.

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 your credit card.
• You don’t already have the option to get a refund or credit for airfare through your airline.

Be sure to read the airline’s flight change and cancellation policies before deciding to buy flight insurance. You may already be able to cancel or change a flight and recoup your money or get a credit toward a future flight. For example, Southwest Airlines allows you to change or cancel a flight for any reason up to 10 minutes prior to departure. You receive a flight credit or a refund depending on the type of ticket.

You should also review your credit card perks to see if you already have some form of flight insurance. Some credit card companies offer protection if you book the flight using your credit card. For example, as an American Express Platinum cardmember, you have basic trip cancellation and interruption coverage, trip delay coverage and baggage coverage.

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 can also affect what you pay.

One example: An AIG Travel Guard international policy sold by United Airlines cost $222 for a 17-day trip to Italy for two travelers age 40. That’s for an economy class flight costing $3,067.

A Travel Guard Preferred plan sold by 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 higher limits for benefits. The policy from United sold at check-out provides $10,000 in travel medical insurance and $20,000 in medical evacuation coverage, per person. The Travel Guard Preferred policy includes $50,000 in travel medical insurance and $500,000 in medical evacuation.

Flight Insurance vs. Travel Insurance

Determining 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.

For example, let’s say you’re traveling domestically to visit a friend in a familiar destination. In this case, a basic flight insurance plan that only refunds airfare may provide adequate coverage.

On the other hand, if you’re planning a multi-destination trip of a lifetime, you might wonder if travel insurance is worth it. To safeguard your trip investment, you may want to consider a comprehensive travel insurance plan, since more could go wrong. For example, you might want travel insurance for lost baggage and travel medical insurance, which typically isn’t included in a basic flight insurance plan.

“If your trip is a large financial investment, it’s important to purchase a travel insurance policy that protects all of your nonrefundable trip expenses, not just the cost of a flight,” says Beckah Ripley, spokesperson for Yonder Travel Insurance. She adds that it’s worth comparing your travel insurance options through a third-party insurer to find a plan that suits your needs at an affordable rate.

Exclusions apply regardless of whether you have flight insurance from an airline or a standard travel insurance policy. For instance, you can’t cancel a trip just because you changed your mind—you’re only entitled to compensation if the cancellation is due to a problem covered in your policy.

Reasons to Get Flight Insurance Instead of Travel Insurance

Flight insurance generally provides more limited coverage than a comprehensive travel insurance plan. That means flight insurance might be a better fit if:

• Your biggest concern is potentially having to cancel or change your flight.
• Your flight is the most expensive part of your trip.
• You’re traveling within the U.S. where your health insurance benefits will apply.
• Your trip doesn’t involve multiple connections.
• Your trip doesn’t involve hotel stays, prepaid activities and excursions.
• You’re not checking your baggage.

Flight Insurance Frequently Asked Questions