What Is Flight Insurance and Is It Worth It?

How Does Flight Insurance Work?

Flight insurance can reimburse you for nonrefundable airfare if your flight is canceled, delayed or interrupted for a reason covered by your policy. Flight insurance isn't included in the price of airfare, but many airlines sell it as an option when you book your flight. You can also buy travel insurance, which typically includes both flight insurance and more comprehensive trip coverage.

Federal law already requires airlines to refund your fare and associated taxes and fees if your flight is canceled or significantly changed and you don't accept the new flight options or travel credits the airline offers. But if you have to cancel your trip or cut it short for other reasons, travel insurance can help protect you financially.

For example, if you cancel your flight because you're called for jury duty, a family member dies or you unexpectedly become ill, the airline isn't required to give you a refund. But flight or travel insurance typically reimburses you for nonrefundable costs of the flight, whether you paid with cash or miles.

Learn more: What Are the Cheapest Days of the Week to Fly?

What Does Flight Insurance Cover?

Depending on the type of coverage you buy, travel insurance can cover some or all of the following problems that can derail your trip.

• Trip cancellation or interruption coverage reimburses your nonrefundable prepaid travel costs if you have to cancel your trip or come home early for a reason listed in the policy. Covered causes usually include flight cancellation due to weather or airline bankruptcy, unforeseen natural disasters at home or at your destination, jury duty, an illness or injury that prevents traveling, or the death or hospitalization of a family member.
• Trip delay coverage kicks in if your flight is significantly delayed. It can reimburse you for nonrefundable prepaid costs affected by the delay and can pay for your hotel and meals until you get a new flight.
• Baggage insurance covers the loss, theft or damage of your baggage or personal items during your trip. (Before purchasing this coverage, check to see if your renters or homeowners insurance covers your personal belongings while traveling.)
• Travel medical insurance provides short-term medical coverage if you're injured or become ill in a location where your health insurance doesn't cover care. Most U.S. health insurance doesn't cover medical care in foreign countries, and even within the U.S., you may not have access to in-network doctors.
• Emergency medical evacuation insurance helps cover the cost of serious medical emergencies, such as a lengthy hospitalization in a foreign country. It can also pay for emergency transportation, such as airlifting an injured person out of a remote area or flying them to suitable medical facilities (or even back home) for the appropriate care.

Learn more: What Does Travel Insurance Cover?

What Does Flight Insurance Not Cover?

Although policies can vary, flight or travel insurance typically has some limitations that can affect coverage for the following issues.

• Trip cancellations: Unless you purchase "cancel for any reason" (CFAR) coverage, work obligations, being detained by customs or voluntarily canceling generally aren't acceptable reasons for canceling a trip. Flight cancellations that are rebooked within a certain time frame may not be covered either.
• Trip delays: Delays may be covered only if more than 50% of your trip is lost. You generally have to make a good faith effort to continue your trip using other means of transportation.
• Travel medical coverage: You may need to get approval from the insurer before receiving care. In addition, treatment for preexisting conditions, mental health emergencies or injuries due to war, terrorism, civil unrest or natural disasters is often excluded.
• Medical evacuation coverage: You typically won't be covered for injuries caused by risky activities such as skydiving, scuba diving or mountain climbing.
• Refundable expenses: Regardless of the cause, insurance won't reimburse you for refundable travel expenses, since you can just get a refund.

Tip: Cancel for Any Reason (CFAR) coverage lets you cancel your trip for any reason and be reimbursed for a portion of your prepaid nonrefundable travel costs. CFAR policies are typically expensive and set time limits on when you can cancel, but could be worth it for peace of mind.

How Much Is Flight Insurance?

Travel insurance typically costs between 4% to 8% of a trip's prepaid travel costs, according to the U.S. Travel Insurance Association. The price can vary depending on the level of coverage and length of your trip; if you're purchasing travel medical insurance, your age and health will be factors as well. For example, flight insurance that only covers nonrefundable airfare costs less than comprehensive travel coverage. The most expensive option, CFAR coverage, can add 40% to 50% to the price of comprehensive travel insurance.

Learn more: Average Cost of Travel Insurance

Is Flight Insurance Worth It?

Flight insurance may be worth it if you have a nonrefundable flight, are concerned that your plans may change and can't afford to cover the cost of the flight if you have to cancel your trip. However, before buying flight insurance, consider these alternatives.

• Flexible airfare: Some types of fares allow you to reschedule your flight or cancel your flight and receive a refund if your plans change, although there may be fees involved. Compare prices; purchasing a flexible fare could be cheaper than buying flight insurance for a nonrefundable fare.
• Credit card travel protections: Some credit cards reimburse you for canceled flights, lost baggage or significant delays. In order to be covered, however, you'll typically need to book your flight using the credit card. Check your credit card benefits for coverage and exclusions.

Tip: Some of the best travel credit cards offer travel protections, which may include flight insurance. You can prequalify for several cards to see what benefits you may get.

Do you want protection for more than just your flight? More comprehensive travel insurance may be worth the cost in these situations:

• You're planning a trip that involves many prepaid, nonrefundable expenses, such as multiple flights, a cruise and shore excursions.
• You or a traveling companion have health issues that could require a last-minute cancellation or cutting the trip short.
• You're traveling during a high-risk time of year, such as hurricane or monsoon season.
• You want to ensure you're covered for a medical emergency in locations where your health insurance won't apply.

You may not need travel insurance if you can afford to cover the cost of disruptions to your trip or if your travel expenses are mostly refundable.

Learn more: What Is Credit Card Travel Insurance?

How to Get Flight Insurance

Airlines usually offer the option to buy flight insurance when booking your flight; you can also do so after you've made your reservation. You may be able to buy flight or travel insurance as late as the day before your trip or even on the day of departure, but your coverage options will be limited.

Other ways to buy flight or travel insurance:

• Through the airline partner's website or by calling the partner directly
• Through an independent travel insurance carrier
• Through a travel agent or tour operator when you book your trip

You can typically customize your travel insurance for your desired level of protection. Before purchasing travel insurance, make sure you understand what is covered and what is excluded.

Learn more: Should You Buy Travel Insurance?

Frequently Asked Questions

The Bottom Line

Flight or travel insurance can protect you financially if covered events disrupt your travel plans. However, you might not need flight insurance if you book your trip with a credit card that offers travel protections. Try using Experian's card comparison tool to get matched with travel credit card offers that fit your credit profile.

Travel rewards cards often require a good credit score. You can check your FICO^® Score^Θ for free with Experian; if it's not where you'd like it to be, take steps to improve it, such as paying down credit card debt and making timely payments. You can also sign up for Experian Boost^®ø, a free feature that could help improve your credit by adding eligible on-time payments for utilities, rent, phone and streaming services to your Experian credit report.