Flight Ticket Insurance: What Does It Cover?

Flight insurance is a type of travel insurance that covers non-refundable airfare in the event of unforeseen circumstances, such as delays, cancellations, interruptions, and other issues. It is designed to protect travellers' financial investments in air travel, ensuring they can recover the cost of their tickets if their plans are disrupted. The coverage provided by flight insurance can vary, with some policies offering benefits for medical expenses, missed connections, lost or stolen luggage, and accidental death and dismemberment. While flight insurance can provide peace of mind, it is important to carefully review the terms and conditions, as coverage limits and exclusions may apply.

Trip cancellation

It is important to note that trip cancellation insurance does not cover all reasons for cancellation. For example, it may not cover cancellations due to government directives, pandemics, or travel warnings. It is also important to review the specific covered reasons and exclusions of your travel insurance plan, as they can vary. Additionally, trip cancellation insurance usually only provides coverage if your travel plans are delayed by at least 24 hours.

Some companies that offer trip cancellation insurance include Travel Guard, Travelex, and Berkshire Hathaway Travel Protection. The cost of trip cancellation insurance can vary depending on factors such as trip cost, age, trip length, and the amount of coverage provided. It is recommended to purchase trip cancellation insurance at the time of booking your travel or shortly after to receive early purchase benefits.

Delays and cancellations

In the US, federal law requires airlines to reimburse passengers if they cancel a flight or delay it beyond a certain amount of time, and the passenger chooses not to travel. The DOT has defined "significant delays" as more than three hours for domestic flights and six hours for international flights. In the event of a significant disruption, passengers may be entitled to a full refund from the airline or their travel insurance provider.

Comprehensive travel insurance typically covers cancelled flights that delay your trip for at least three to twelve hours. If your flight is delayed for less than three hours and rebooked, cancellation-related costs are unlikely to be covered. However, if your trip is delayed by more than twelve hours, you may be eligible for trip cancellation coverage, depending on your plan. It is important to carefully review the terms and conditions of your policy to understand what is covered and under what circumstances.

In addition to financial protection, some travel insurance plans offer assistance services that can help make alternative arrangements in the event of a covered delay. This can include booking the next available flight in the case of missed connections. Travel insurance can also provide coverage for other unforeseen events, such as accidental death, trip interruptions, and baggage delays.

It is worth noting that travel insurance generally does not cover cancellations or delays caused by the airline. For example, in the US, airlines are only obligated to provide a refund or an alternative flight in the case of weather-related delays or cancellations. Similarly, if you choose to delay or cancel your trip due to unfavourable weather, this typically won't be covered by insurance.

Lost, damaged or stolen luggage

Losing your luggage can be a stressful experience, and it's something that many travellers worry about. Fortunately, there are a few ways to protect yourself and your belongings when you fly.

Firstly, it's important to understand that airlines are responsible for compensating passengers if their bags are lost, damaged, or delayed. This is outlined in the US Department of Transportation (DOT) regulations for domestic travel, and international treaties for international travel. Airlines are required to compensate passengers for the cost of repairing or replacing damaged baggage and its contents, up to certain maximum liability limits. These limits vary depending on the flight's itinerary and the policies of the airline. Most airlines will declare a bag lost between five and fourteen days after the flight, but this can differ between airlines.

In the case of lost, damaged, or stolen luggage, it is recommended that you report it as soon as possible. If your luggage is delayed, you may be entitled to reimbursement for essential clothing and toiletries after a certain period, typically 12 hours. It is important to carefully review the terms and conditions of your travel insurance policy, as certain items may be excluded from coverage, and there may be specific requirements or limitations.

Additionally, it is worth considering purchasing additional insurance for valuable items. While airlines are responsible for compensating passengers, there may be limitations on the amount they are willing or able to pay. Comprehensive travel insurance plans often include coverage for baggage loss, delays, and damage. This can provide additional reimbursement for costs that your airline may not cover. Some insurance providers offer plans tailored to your specific needs, allowing you to select the level of coverage that suits your trip.

Furthermore, it is important to note that some credit card companies offer coverage for lost luggage if you used their card to book your flights. Similarly, your homeowners or renters insurance may provide coverage for lost luggage and the replacement of items, although a deductible may apply.

By understanding your options and choosing the right travel insurance, you can have peace of mind when it comes to protecting your luggage and belongings during your trip.

Medical emergencies

Flight insurance is designed to protect you from financial losses related to unexpected events during your trip. While comprehensive travel insurance covers a broader range of issues, including flight-related problems, medical emergencies, and trip cancellations, flight-specific insurance policies typically focus on flight inconveniences. These may include delays, cancellations, and lost, damaged, or stolen luggage.

• Medical Travel Insurance: This type of insurance is designed for travellers who may require emergency medical treatment during their trip. It covers the cost of emergency medical flight transportation and any associated medical expenses. It is important to review the policy details, as some plans may not cover pre-existing medical conditions or emergencies related to high-risk activities like skydiving or scuba diving.
• Medical Evacuation Insurance: This insurance covers the cost of evacuating a patient to their preferred hospital, which could be the nearest high-quality facility or a hospital in their home country. It includes emergency transportation costs, medical repatriation, medical escort services, and travel costs for family members or companions. Medical evacuation is often included in comprehensive travel insurance plans, but it is rarely part of standard health plans.
• Air Ambulance Insurance: Air ambulance services are specialised medical transport services used when ground ambulances cannot reach a patient in time or when long distances are involved. The cost of these services can be significant, and insurance coverage can help mitigate the financial burden. While some insurance companies cover air ambulance services, disputes over costs can arise, leaving patients with unexpected bills. It is crucial to consult your insurance provider to understand the specific coverage and limitations of your policy.
• Health Insurance Plans: Your existing health insurance plan may cover air ambulance services or medical flight transportation in certain circumstances. However, the interpretation of "medically necessary" transportation is at the discretion of your insurance company. It is important to contact your insurance provider to determine the exact coverage for medical flight services.
• Comprehensive Travel Insurance: In addition to flight-related issues, comprehensive travel insurance provides broader protection for medical emergencies that may occur during your trip. This type of insurance can give you peace of mind, knowing that you are covered for unexpected medical expenses and evacuation or repatriation services if needed.

Accidental death and dismemberment

Flight insurance is designed to protect you from financial losses caused by unexpected events related to your air travel. This typically includes trip delays, cancellations, interruptions, and lost, damaged, or stolen luggage. It also covers you if you cannot fly due to a documented medical reason.

This type of insurance is particularly relevant when flying, as air transportation is largely out of your control, and unexpected events such as cancellations and delays can occur. Additionally, flights often represent a significant expense in your trip, so there is a greater financial risk if something goes wrong.

Several companies offer accidental death and dismemberment insurance specifically for air travel. For example, Travel Guard offers a standalone flight-specific accidental death and dismemberment plan called Flight Guard. This plan can be purchased separately if that is the only coverage you require. Similarly, Travel Insured International offers Accidental Death & Dismemberment (Air Flight Only) coverage, with benefit limits ranging from $100,000 to $1,000,000.

When considering flight insurance, it is important to review the specific terms, limitations, and exclusions of the policy. For instance, some policies may exclude certain adventure activities or pre-existing medical conditions. Additionally, it is worth noting that flight insurance typically has lower maximum values and covers a narrower range of events compared to comprehensive travel insurance. Therefore, if you have significant investments in other parts of your trip, such as hotels or tours, a comprehensive travel insurance plan may provide more comprehensive protection.

Frequently asked questions