Waht Is Flight Insurance Policy: Is it Worth It?

Flight Insurance Policy

Traveling is not just an opportunity to relax and explore the world. They require some investment as well. However, you can safeguard some of your investment with the best flight insurance. It could be worthwhile if you want to recoup your non-refundable airfare and have no other type of travel insurance.

Whether booking a flight with miles or cash, flight delay insurance can help you get your miles or money back if your trip is unexpectedly delayed or canceled.  Check this guide to decide if the insurance of a flight is worth your trip and all the crucial details you must know about it.

What is Flight Insurance?

The technical terms used in travel insurance can be perplexing. To simplify things, we define flight insurance as the protection of a non-refundable flight you have paid for with cash or miles. Generally, flight insurance is offered when:

  • You buy a comprehensive travel insurance policy through a provider such as TravelSafe, Berkshire Hathaway, etc.

  • Use a premium travel card to book your flight.

  • You are buying a flight ticket, and during the checkout process, you can purchase the airline's trip insurance.

What Does Flight Insurance Cover?

A few standard forms of coverage may include whether you purchase flight insurance as an add-on from the airline, through your premium credit card, or as part of a comprehensive travel insurance plan. The plan includes a flight refund if you cannot travel for a covered reason, lost baggage coverage, and coverage for missed connections or flight cancellations.

1- Trip Cancellation Insurance

The insurance for trip cancellation will reimburse you for prepaid, non-refundable expenses if your flight is canceled for a covered reason. When you use your premium travel card from American Express or Chase to book your trip with miles or points, the trip cancellation insurance that comes with the cards will reimburse you for the points you used. 

Additionally, only round-trip reservations made with an American Express card are reimbursed. If you have an American Express travel card, you will want to check the benefits guide for your card because that is where this caveat is located.

2- Flight Delay Insurance

This coverage applies when your travel is delayed, and you must pay additional costs. Every policy specifies the maximum compensation amount and the length of time the delay must last for the trip to be eligible. Further, flight delay insurance coverage typically has a daily maximum of $150 and starts after you've been delayed for a predetermined amount of time, like six hours. 

3- Lost-Luggage Insurance

If you have lost luggage insurance, you will be eligible for reimbursement if your luggage is lost, stolen, or damaged during a trip. In the event of damage, the reimbursement would be for the repair or replacement cost, whichever is lower. You would generally have to claim with your homeowners' insurance or the airline first because this is secondary insurance. 

What Does Flight Insurance Not Cover?

Despite the fact that flight insurance provides numerous safeguards, it's crucial to understand what might not be included. Things that aren't discussed include, for instance:

  • Change of Mind: You won't be compensated if you cancel a flight because you decide not to go. There must be a valid explanation for the cancelation, such as inclement weather, being too sick to travel, job loss, etc.
  • Expensive Luggage: If you are traveling with high-end luggage, anything above $300 won't be insured if it is damaged or lost. 
  • Medical Evacuation: This coverage usually begins when you have a medical emergency while traveling and must be sent to the closest hospital. As it extends beyond a single flight, it is more likely to be included in a comprehensive insurance policy.

A comprehensive travel insurance policy typically includes higher luggage limits and medical evacuation coverage. Therefore, if you are wondering about coverage beyond your flight, consider a stand-alone travel insurance policy, a credit card, or the CFAR travel insurance to a comprehensive policy. 

How Does Flight Travel Insurance Work?

If you have basic flight insurance, it will pay for your non-refundable airfare as the policy specifies. Before purchasing, it's crucial to read the fine print because every policy can differ significantly.

1- Flight Insurance From Small Airline Companies

Trip Flex, a flight travel insurance program from Allegiant Airlines, enables customers to modify their travel plans and postpone their journeys up to 24 hours before departure without incurring additional costs. Additionally, they can change the flight ticket section of their schedule up to one hour before departure.

However, your entire itinerary is non-refundable if you don't cancel it within 72 hours of your departure, which means you won't be paid for any additional package items like lodging, activities, or a rental car. Trip Flex also has other rules, such as special flight promotions and sales and holiday travel dates. 

2- Flight Insurance From American Airlines, Delta, And United

American and Delta Airlines offer comprehensive flight travel insurance through a partnership with Allianz Travel. This policy includes advantages like trip cancellation, interruption, trip and baggage delay coverage, and travel medical insurance for international flights.

If you cancel a trip for reasons covered by your policy, standard travel insurance policies with pre- and post-departure benefits reimburse you for trip costs, including non-refundable airline tickets. 

3- Flight Insurance Plans For Air Travel Inconvenience

Travelex Insurance offers a Flight Insure Plan and a Flight Insurer Plus Plan. The regular Flight Insure Plan includes travel assistance, accidental death and dismemberment coverage, and trip delay. The Plus plan also includes luggage and emergency medical and dental coverage. However, the Flight Insure Plans don't include trip or flight cancellation benefits, so they don't reimburse you for airfare. 

You can also read: Can You Book International Flight Without Passport?

How Do I Get Flight Insurance?

If you opt to insure your flight while you're traveling, you must first decide what kind of policy would give you the necessary coverage. There are several strategies to keep your flight safe:

1- Buy A Stand-Alone Travel Insurance Policy.

A comprehensive travel insurance policy offers the most benefits, including trip delays, trip cancellations, baggage loss, emergency medical treatment, repatriation, and more. Seven Corners, Allianz, and World Nomads are the top providers of comprehensive travel insurance plans.

2- Utilize The Complimentary Travel Insurance Provided By Your Credit Card

Like the benefits of stand-alone travel insurance policies, many travel cards have free travel insurance protections. However, to gain coverage, the entire trip must be charged on the same card, the limits are typically smaller, and medical expenses cannot be covered. 

3- Buy The Airline's Travel Insurance Add-On When Purchasing The Ticket.

When you purchase a flight ticket from an airline (in miles or cash), you may see an option to buy trip insurance during checkout. For example, United provides flight insurance through Travel Guard, while American Airlines uses Allianz. 

You should be mindful of any limitations, as coverage varies among carriers. Flight delay insurance has the common feature that the safeguards can only be used if there is a covered reason for the cancellation or delay of your trip. 

Should I Purchase Flight Insurance?

If you have a credit card that offers some form of flight travel insurance, the coverage limits may be enough to secure your flight. However, if you don't have these cards and your trip only includes non-refundable flights, buying the travel insurance add-on from the airline when reserving your flight may offer sufficient coverage. 

Further, if your trip also involves hotel reservations and other non-refundable arrangements, you would be better off using your credit card coverage or a separate travel insurance policy.

Flight Insurance Vs. Travel Insurance: Which One Is Better?

Which insurance option is best for you will depend on your coverage needs, your financial situation, and the intricacy of your trip itinerary. For instance, if you visit a well-known city in your country, an entry-level flight insurance plan that solely reimburses airfare might provide sufficient coverage.

On the other hand, if you are planning a lifetime multi-destination trip, buying a travel insurance policy that protects your non-refundable expenses, not just the flight cost, is essential. However, flight insurance generally provides more limited coverage than travel insurance. As a result, flight insurance might be a better option if:

  • Your main concern is having to change or cancel your flight.

  • Your flight is the most costly part of your trip.

  • You are traveling within the U.S., where your health insurance benefits will apply.

  • Your trip involves only several connections.

  • Your trip does not involve prepaid activities, excursions, or hotel stays.

  • You are not checking your baggage.

How Much Does Flight Insurance Cost?

The cost of the best flight insurance typically depends on the type of policy, your age, trip length, and total trip cost. However, the price will be lower than the flight cost. For example, using United Airlines' AIG Go Guard foreign coverage, two adults over 40 can go to Italy for 17 days at $222. That covers a $3,067 flight in economy class.

Roughly $410 is spent on AIG Travel Guard Preferred coverage for the same trip with travelers and a total trip cost of $6,000. That is twice as much as the United policy, but the benefit caps are more significant. $10,000 in travel health insurance and $20,000 in medical evacuation coverage are included in the United policy purchased at checkout. $50,000 in travel medical insurance and $500,000 in medical evacuation coverage are included in the Travel Guard Preferred plan.

Is Flight Insurance Worth It?

Flight insurance is offered when purchasing a flight ticket, but it is not always worth the cost. Comprehensive travel insurance coverage for your entire trip is probably a better alternative if you have overspent on non-refundable deposits for hotel stays and tours. Also, it provides more substantial coverage, especially for medical evacuations and trip cancellations. Still, flight insurance might be worth it if:

  • The airfare is your only expense of a non-refundable trip, and you don't have insurance via your credit card.

  • You cannot currently obtain a credit or refund for your airfare directly from your airline.

Before buying flight insurance, be sure to read the airline's cancellation and flight change policies. You may already change or cancel your flight and recoup your money. It's a good idea to check your credit card benefits to see whether insurance is already included. Furthermore, some credit card issuers will also offer protection if you use your credit card to reserve the flights.

Can I Cancel My Flight Insurance?

Yes, you can cancel your flight travel insurance, though the specifics vary by insurance company and policy. For instance, insurance through Expedia and Travelocity can be canceled before the start of your trip, up to 15 days after booking a flight, as long as you haven't filed a claim. Some of their policies may also offer flexibility to cancel outside the 15 days. 

Most travel insurance providers give you 14 or 15 days to review the policy and submit a refund request if you're not satisfied. For instance, Allianz provides a 15-day review period in most states.

Need Assistance?

Considering all the unfortunate scenarios that could affect you or your trip, getting travel insurance is wise. Still, wondering if insurance is worth it for your trip or if you should learn more about the Flight delay insurance policy? Call +1-800-865-1848 to speak with a travel expert and get an immediate answer to all your questions.

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