Is Flight Insurance Worth It? Breaking Down Cost & Coverage
There’s no such thing as a risk-free vacation. Each year, millions of Americans have their trips disrupted by lengthy delays, last minute flight cancellations, and mishandled luggage.
Even with recent changes to airline refund policies, there’s still the chance that flight disruptions can leave you on the hook for costly, unexpected out-of-pocket expenses.
For peace of mind and financial protection, many travelers are opting to safeguard their trips with flight insurance.
Is Flight Insurance Worth It?
Flying on time without interruption is also never a guarantee. In fact, in recent years, the U.S has seen a large spike in flight delays and cancellations. For that reason, the price of a flight insurance policy can be a worthy investment for the peace of mind alone.
Due to the high price tag associated with international air travel, flight insurance is often well worth the investment if you’re heading abroad. Purchasing a policy for your next trip could save you thousands of dollars if an unexpected event disrupts your travel plans.
We recommend purchasing travel insurance if you have high flight costs, need overseas medical insurance, and want protection against common travel disruptions.
That said, whether flight insurance is worth the money depends on your individual travel plans, how valuable or complex your trip is, and how comfortable you are with risk. For some, it’s a smart safeguard, while for others, it might be an extra cost with little benefit.
To help you decide, we’ll take a closer look at the financial side of things, explore potential risks specific to your trip, and explain why your policy’s fine print, and your personal circumstances, matter.
Is Flight Insurance Worth the Cost?
According to Squaremouth travel insurance sales data from the past 12 months, the average comprehensive travel insurance plan with flight coverage costs around $30/day. The average premium for these plans was $415, with an average trip length of 14 days.
$30/day may sound like a lot to pay for flight insurance, but the reality is that these plans include comprehensive travel coverage for much more than just flights:
- Medical emergencies
- Travel delays
- Lost or stolen belongings
- Hotel and rental car coverage,
- Comprehensive cancellation and interruption coverage
- And much more
Therefore, comprehensive travel insurance that also covers flights is well worth the cost given the ample benefits it offers. That said, many factors affect the price of travel insurance, so it’s possible to find plans for even cheaper.
What Factors Determine the Cost of Flight Insurance?
Travel insurance providers consider several factors when calculating your premium. In general, the following key variables will play a role in determining the cost of your trip protection:
- Trip Cost: The more you’ve pre-paid and stand to lose, the higher the insurance cost.
- Traveler Age: Older travelers tend to pay more due to higher medical risk.
- Trip Duration: Longer trips increase the chances something could go wrong.
- Destination: Riskier or more remote destinations can raise premiums.
- Coverage Type: Comprehensive plans that include medical or evacuation benefits cost more than flight-only policies.
- Timing of Purchase: Some benefits (like Cancel for Any Reason) require early purchase.
If you are on a tight budget or looking for flight-only travel coverage, some companies offer cancellation-only plans. These plans typically cover trip cancellations and interruptions and can be cheaper than comprehensive plans, which may make them more worth buying if you are on a budget.
These factors help insurers evaluate the risk level and determine your premium accordingly.
How Much Does Flight Insurance Reimburse In the Event of a Claim?
Reimbursement amounts depend on the type of claim and your policy limits. Here’s what you can typically expect depending on the benefit you are claiming:
- Trip Cancellation: Reimbursement up to 100% of non-refundable expenses.
- Travel Delay: Daily limits (often $100–$300) for meals, lodging, and transportation
- Baggage Delay: Up to $500–$2,500, depending on your plan
- Baggage Loss: Up to $500–$3,000, depending on your plan
- Emergency Medical: Up to $50,000–$2,000,000, depending on your plan
- Medical Evacuation: Up to $50,000–$2,000,000, depending on your plan
According to Squaremouth data, trip cancellations account for roughly 40% of all travel insurance claims, making it the most common flight disruption among customers. On average, these claims reimbursed customers over $4,000.
Is It Worth It to Buy Flight Insurance Through an Airline?
While it might be convenient to add insurance when booking your flight, policies sold by airlines are often more expensive and come with fewer benefits than comprehensive travel insurance sold by third-party providers. These plans tend to be “bare-bones” and may not cover medical emergencies, travel delays, or baggage loss as thoroughly as third-party options.
Check out our full review of flight insurance from major airlines.
So, is airline flight insurance worth it? – The truth is, you can usually find broader protection at a better value by comparing travel insurance plans through independent platforms or buying directly from a trusted insurer.
Determining If Flight Insurance is Right For You
When determining if flight insurance is right for you, consider the following:
- Any Existing Coverage: Some travel credit cards offer limited trip interruption or cancellation benefits, which may reduce the need for separate flight insurance.
- Prepaid Trip Expenses: Insurance can be a particularly smart investment if you have a high amount of prepaid, non-refundable travel expenses you wish to protect.
- Specific Travel Concerns: Flight insurance may provide peace of mind if you’re traveling during hurricane season, have health concerns, or are juggling an unpredictable schedule.
- Airline Coverage: Some airlines offer flexible tickets or allow free cancellations or changes. If you’re booking with an airline that provides generous coverage or refund policies, you may not need additional flight insurance.
- Time of Year: Seasonal factors like winter storms or summer hurricanes can significantly increase the likelihood of delays or cancellations.
- Trip Complexity & Logistics: The more complicated your itinerary, the more useful flight insurance can be in protecting against delays, missed connections, and other common flight disruptions.
Bottom Line: Flight Is Worth It in Some Cases
Flight insurance isn’t always necessary—but it is a solid financial safety net when the stakes are high.
If you’re booking a major trip, traveling under time-sensitive conditions, or simply want a backup for unexpected disruptions, flight insurance is likely worth the extra cost.
If you are on a budget, take the time to compare plans, understand what’s covered, and make sure it complements (not duplicates) any existing coverage you may have through credit cards or health insurance. The right flight insurance policy can turn a travel headache into a minor hiccup—and that’s worth it in our opinion.