Does Travel Insurance Cover Cancelled Flights?

Does Travel Insurance Cover Cancelled Flights?

Travel insurance can serve as a safety net for unexpected mishaps that can happen while traveling. One such mishap, and a quite common one, is a cancelled flight. But does travel insurance cover cancelled flights? Let’s take an in-depth look into this matter.

The Basics

Travel insurance is a specific type of insurance that guards against various financial risks and losses that can occur during travel. These protections can range from minimal to highly comprehensive, often depending on the type of plan you purchase.

In the context of flight cancellations, whether you’ll be reimbursed hinges on the nature of the cancellation and the specifics of your insurance policy. Generally, if the cancellation is due to reasons specified within your policy (termed “covered reasons”), you can expect compensation.

Covered Reasons for Flight Cancellation

“Covered reasons” are specific situations and instances defined in your travel insurance policy under which the insurance provider will pay a claim. The conditions that permit a flight cancellation claim can vary based on the provider and the specific policy, but typical covered reasons include:

  1. Severe Weather: If extreme weather conditions result in the cancelling of your flight, your travel insurance policy may cover the costs.
  2. Illness or Injury: This refers to serious health emergencies that prevent you from travelling. If you, a travel companion, or a close family member at home falls critically ill or gets injured, you can generally claim your cancelled flight.
  3. Death: If a family member passes away, and it forces you to cancel your travel plans, most travel insurance policies will provide coverage.
  4. Terrorism or Unrest: If your travel destination is experiencing acts of terrorism or civil unrest, causing flight cancellations, your policy may offer protection.

Remember, always confirm with your insurer or thoroughly review your policy’s fine print to understand what it covers.

What Might Not Be Covered

Just as important as understanding what’s covered under your travel insurance policy is recognizing what’s not. Typically, travel insurance will not provide coverage if the cancellation reason doesn’t fall under the list of ‘covered reasons.’

For instance, choosing not to travel because of personal reasons, or finding a cheaper flight with another carrier, are generally not considered valid grounds for a claim. Fear of travel (unless advised against by a government authority due to reasons like a pandemic or civil unrest) is unlikely to be covered.

Trip Cancellation vs. Trip Interruption

While both provide benefits for cancelled flights, trip cancellation and trip interruption coverage apply at different junctures of your travel.

  • Trip Cancellation: This is the coverage you tap into when you need to cancel your trip entirely before you start. The policy will reimburse prepaid, non-refundable travel expenses if you have to cancel for a reason listed in the policy.
  • Trip Interruption: This coverage becomes important if you have to cut your journey short and return home due to a covered event. It typically reimburses for the portions of the prepaid, non-refundable trip cost that you lose because of the early return. It might also help pay for additional transportation expenses.

Conclusion

Flight cancellations can create real headaches and potentially leave you with substantial out-of-pocket costs. Understanding how travel insurance covers cancelled flights can, therefore, provide much-needed financial protection and peace of mind.

To make an informed decision about which travel insurance policy to purchase, take the time to read the fine print and clarify any points of uncertainty with the insurance provider. Find the plan that matches your specific travel plans and needs — ensuring you can focus more on the adventure and less on the what-ifs.