Flight Insurance: Is It Worth It?

You probably don’t book travel with the intention of canceling or delaying your trip. But when something unexpected happens, you might have no choice. Flight insurance protects you in these instances by covering unreimbursed expenses related to your air travel.

A few insurance companies offer stand-alone flight insurance policies. But you’ll typically have flight coverage as part of a comprehensive travel insurance policy, or as a benefit through your travel rewards credit card.

What flight insurance covers

Flight insurance covers flight-related expenses if you experience a travel delay, cancellation, or interruption due to a covered reason, such as illness.

Specific coverages vary by insurer, so it’s important to read the details of your policy carefully. Here are some of the protections flight insurance might provide:

What it doesn’t cover

Flight insurance only covers unexpected situations beyond your control, so the coverage has limits. Here are a few common coverage exclusions:

• Travel you cancel out of worry or inconvenience: Unless your plans change for a covered reason, your flight insurance won’t cover your losses.

• Pre-existing medical conditions: Flight insurance doesn’t cover trip delays, interruptions, or cancellations due to unexpected illness or injury related to pre-existing conditions.

• Hotel expenses: Flight-only coverage only reimburses costs related to the flight. You’ll need comprehensive travel insurance for non-flight-related costs, like your hotel stay.

Should you purchase flight insurance?

It may be worth it to purchase flight insurance if your airfare is the only travel expense you won’t qualify for reimbursement for in the event of trip delay, interruption, or cancellation. For example, if you’ve booked a hotel stay at your destination that allows cancellation without a fee as late as your check-in day, you might consider buying flight insurance.

If you can’t cancel your hotel reservation and other nonrefundable sightseeing tours and entertainment tickets, a comprehensive travel insurance policy is probably a better choice. American Express travel insurance, for example, covers up to 100% of the cost of a canceled trip and 150% of the cost of an interrupted one.

Where can you buy flight insurance?

Only a small number of insurance companies, including Berkshire Hathaway and Travelex, offer stand-alone flight insurance. But you can also secure flight coverage as part of a comprehensive travel insurance policy.

You can find readily available travel policies from the following places:

• Traditional insurance companies: Many insurance companies you’re probably familiar with offer travel insurance. For example, Chubb and Nationwide both have robust travel insurance offerings.

• Travel insurance companies: You can purchase travel insurance through many different companies that specialize in travel policies. Allianz Travel and Generali (formerly CSA) are two popular ones. Make sure you carefully check policy details, though. You might have to purchase coverage before you’ve finished paying for your trip.

• Airlines and other travel suppliers: Airlines sometimes work with partners like Allianz and AIG Travel Guard to provide comprehensive travel insurance to their customers. Cruise lines and tour operators may also offer this coverage.2

• Travel rewards credit cards: Premium travel rewards credit cards often provide travel insurance for free when you book your trip through the card issuer’s website, using the card as your payment method. Chase Sapphire customers, for example, get up to $10,000 in cancellation and interruption coverage per person.

How much does flight insurance cost?

Flight insurance is affordable. You can save money by choosing it over a more robust travel insurance policy.

Travelex, which sells stand-alone flight coverage, has a basic Flight Insure plan for about $7 per trip that exclusively covers the flight. It also has a Flight Insure Plus plan for about $26 per trip that includes flight, medical, and baggage coverage. Berkshire Hathaway also has a stand-alone AirCare plan for about $26 per trip that includes flight, baggage, and medical emergency coverage.

The cost of travel insurance plans is typically a percentage of your total trip costs. Rates vary by company, but you may pay between 4% and 10% of your total trip costs for travel insurance. Your age, the total cost of your trip, selected coverage, and the number of travelers in your party can all affect your insurance rate.

Flight insurance vs. travel insurance

Flight insurance and travel insurance differ in what and how much they cover.

Flight insurance only covers flight-related expenses, such as the cost of your ticket, lost or delayed baggage, and flight delays. Depending on the policy, you may also have medical assistance coverage. Travel insurance is more comprehensive. It can cover all your travel expenses, including flight-related costs, hotels, excursions, and medical assistance.3

If a trip delay, interruption, or cancellation would leave you paying for unreimbursed expenses, like for a hotel stay, travel insurance is probably the better product for you. When looking into coverage, make sure you don’t duplicate any flight or travel insurance coverages. You can typically only collect from one policy.