Flight Trip Insurance: Is It Worth the Cost in 2025?

Flight Trip Insurance: Is It Worth the Cost in 2025?

What is Flight Insurance?

Specifically covering financial losses linked to your trips, flight insurance—also known as airline ticket insurance—can cover missed connections, cancelled or delayed flights, and missing or damaged luggage. Unlike thorough travel insurance, which provides more general coverage encompassing medical emergencies, trip interruptions, and other travel-related problems, flight insurance can also cover missed connections, cancelled or delayed flights, and missing or damaged luggage.

What Does Flight Insurance Typically Cover?

Policy determines coverage; widespread benefits vary but include:

Trip Cancellation: Reimburses the cost of your non-refundable ticket if you cancel your flight for a covered reason (e.g., illness, severe weather, jury duty).

Trip Interruption: If you need to cut your trip short for a covered reason, the airline will reimburse the unused portion of your ticket.

Trip Delay: Covers expenses like meals and accommodations if your flight is delayed for a specific period (often 6-12 hours).

Missed Connection: Reimburses expenses if a flight delay causes you to miss a connecting flight.

Baggage Loss/Damage: Covers the cost of replacing lost, stolen, or damaged luggage.

Baggage Delay: Reimburses expenses for essential items if your baggage is delayed.

How Much Does Flight Insurance Cost?

Flight insurance usually accounts for between 4% and 12% of the total flight cost. Several elements influence the price, including trip length, destination, age, and certain desired perks. For instance, insuring a $500 flight might cost between $20 and $60.

Where Can You Buy Flight Insurance?

Airlines: Most airlines offer flight insurance during the booking process. Third-party travel insurance companies often underwrite policies.

Travel Insurance Companies: Many companies specialize in travel insurance, including flight-specific policies or comprehensive plans. Some providers mentioned include Allianz, AIG, Generali, Seven Corners, Berkshire Hathaway, Travelex, and Travel Insured International.

Comparison Websites: Websites like Squaremouth, InsureMyTrip, and TravelInsurance.com allow you to compare policies from different providers.

Credit Cards: Several premium travel credit cards offer flight insurance as a perk. Examples include the Chase Sapphire Reserve® and The Platinum Card® from American Express. Check your card benefits for specific details.

Examples of Flight Insurance Costs and Coverage:

Delta: A flight insurance example from Delta, offered through Travel Guard, costs $14 for a $213 flight and includes trip cancellation, lost baggage coverage, and coverage for flight cancellations and missed connections.

American Airlines: Flight insurance through Allianz, available when booking a flight, includes baggage loss coverage with a $300 limit.

Travel Insurance for Older Travelers:

Although travel insurance for seniors is typically more costly because of higher risk, it is especially crucial given the possibility of medical crises. Certain insurance companies even grant Cancel For Any Reason (CFAR) advantages or eliminate pre-existing condition exclusions at an additional cost. For a 65-year-old insured for a $3,000 vacation, the average price is 7.3% of the trip cost.

Is Flight Insurance Worth It?

Think over these elements before determining whether or not to get flight insurance:

Cost of Your Flight: Insurance can protect a significant investment if your flight is expensive or non-refundable.

Importance of the Trip: Insurance can provide peace of mind for a critical trip (e.g., a wedding or an important business meeting).

Existing Coverage: If you have travel insurance through a credit card, assess if it provides adequate coverage.

Risk Tolerance: Insurance may be unnecessary if you're comfortable with the financial risk of flight cancellations or delays.

Cancel For Any Reason (CFAR) Insurance:

An extra upgrade called CFAR lets you postpone your flight for whatever reason and get a partial refund, usually from 50% to 75%. Usually costing extra, it has specific purchasing deadlines—typically within 14 to 21 days of booking.

Flight Insurance on Award Tickets:

Journey insurance usually pays the redeposit charge for your miles should the trip be cancelled; it does not cover the miles' value if you schedule a journey with miles. Credit cards and some all-encompassing insurance policies cover these costs.

Medical Coverage and Flight Insurance:

Usually, flight insurance excludes medical care. If you are flying abroad, consider a single travel medical insurance plan or a whole package.

Annual Travel Insurance:

If you fly regularly, annual or multi-trip insurance could be less expensive than paying single-trip flight insurance for every trip.