The Traveler’s Guide to Airline Travel Insurance
Airline flights can be disrupted for bad weather, mechanical issues, and any number of other unforeseen events. When flights are delayed or even canceled, it can add unexpected costs to your trip, such as meal expenses and hotel charges. Airline travel insurance can reimburse you for those expenses and help keep your trip costs within budget.
What is Airline Travel Insurance?
Airline insurance is a type of travel insurance offered by passenger airlines that can be added at the time you purchase your airline tickets. While it may be branded with the airline’s name, flight insurance is provided through a partnership between the airline and the travel insurance provider.
Travelers primarily purchase airline insurance to cover flight cancellations and delays. However, airline travel protection can be more than just travel insurance for flights. It can also cover expenses related to trip interruptions, lost luggage and medical emergencies, among other things. The extent of your coverage depends on the plan you choose and the limits set by the insurance provider.
Not all major airlines have add-on flight insurance. For example, you won’t see an option for Southwest travel insurance when booking a flight with Southwest, but you will be offered United flight insurance when traveling with that airline.
However, you don’t have to buy directly from your airline. You also have the option to purchase travel insurance through a travel insurance comparison website or directly from a travel insurance company. Regardless of where you buy, the best time to buy travel insurance is as soon as possible for maximum benefit.
What Does Airline Insurance Cover?
Airline insurance plans offer different coverage options and limits, but these are the most important benefits you’ll want to see when purchasing a policy:
- Flight cancellations. Reimbursement for your non-refundable travel expenses, such as airfare, hotel and rental car, when you cancel your trip due to a covered event.
- Flight delays. Covers the cost of extra meals and accommodations if your flight is delayed for a significant time period, typically a minimum of 6 hours.
- Missed connections. Reimbursement for unused reservations and transportation if you missed your departure due to a 3-12 hour delay due to a covered reason.
- Lost luggage. Reimbursement if your luggage or personal items are lost, damaged or stolen.
- Delayed luggage. Covers the purchase of clothing and personal items when your luggage is delayed over 24 hours.
- Medical emergencies. Covers expenses related to medical emergencies during your trip.
Which Airlines Offer the Best Travel Insurance?
Here are the top airlines that offer travel insurance, along with basic coverage details:
American Airlines
American Airlines travel insurance is offered through a partnership with Allianz Trip Insurance, with a variety of plans and coverage levels to choose from. In this instance, we selected American Airlines flight insurance plan called Travel Insurance II plan, which offered the following benefits:
| Benefit | Coverage Details |
| Trip Cancellation | 100% of trip costs ($10,000 limit for pre-existing medical condition) |
| Trip Interruption | 100% of trip costs ($10,000 limit for pre-existing medical condition) |
| Trip Delay | $150 daily limit for delays of 6 or more hours |
| Missed Connection | None |
| Lost Luggage | $500 limit for lost, stolen or damaged baggage |
| Delayed Luggage | $100 limit for delays of more than 24 hours |
| Medical Emergencies | $10,000 limit for medical expenses, $500 limit for dental, $50,000 limit for transport |
United Airlines
United travel insurance is called Travel Guard and is available through AIG insurance. United Airlines travel insurance coverage and terms can vary based on your state of residence, but the following coverage information is provided on their website:
| Benefit | Coverage Details |
| Trip Cancellation | 100% of trip costs |
| Trip Interruption | 125% of trip costs |
| Trip Delay | Reasonable additional expenses for delays of 5 or more hours |
| Missed Connection | $500 limit for weather or common carrier delay |
| Lost Luggage | $500 limit for lost, stolen or damaged luggage |
| Delayed Luggage | None |
| Medical Emergencies | $10,000 limit for medical expenses (International travel only) |
JetBlue
JetBlue travel insurance is also offered through a partnership with Allianz Travel Insurance. However, the Travel Insurance II plan is the only coverage available for purchase. The plan offers the following benefits:
| Benefit | Coverage Details |
| Trip Cancellation | 100% of trip costs ($10,000 limit for pre-existing medical condition) |
| Trip Interruption | 100% of trip costs ($10,000 limit for pre-existing medical condition) |
| Trip Delay | $150 daily limit for delays of 6 or more hours |
| Missed Connection | None |
| Lost Luggage | $500 limit for lost, stolen or damaged baggage |
| Delayed Luggage | $100 limit for delays of more than 24 hours |
| Medical Emergencies | $10,000 limit for medical expenses, $500 limit for dental, $50,000 limit for transport |
Delta Airlines
Delta flight insurance is the Travel Protection Plan offered through Allianz Global Assistance. Delta provided the following information about their Travel Protection Plan on their website:
| Benefit | Coverage Details |
| Trip Cancellation | 100% of trip costs, refund or travel certificate |
| Trip Interruption | 100% of trip costs up to $10,000 |
| Trip Delay | $150 daily limit for delays of 6 or more hours |
| Missed Connection | $500 limit for travel accident or weather (NY residents only) |
| Lost Luggage | $1,500 limit for lost, stolen or damaged baggage |
| Delayed Luggage | $250 limit for delays of more than 24 hours |
| Medical Emergencies | $50,000 limit for medical expenses, $500 limit for dental, $50,000 limit for transport |
Travel plan benefits vary for residents of California, New York and Washington.
Spirit Airlines
Spirit travel insurance plan is through their partnership with Travel Guard. Plan benefits and coverage may vary based on your state of residency and whether you’re insuring a domestic or international flight. Here are the benefits for a California resident flying domestically:
| Benefit | Coverage Details |
| Trip Cancellation | 100% of trip costs up to $100,000 |
| Trip Interruption | 125% of trip costs up to $100,000 |
| Trip Delay | $100 daily limit up to $500 maximum for delay of 5 or more hours |
| Missed Connection | $500 limit |
| Lost Luggage | $1,000 limit |
| Delayed Luggage | $100 daily limit up to $500 maximum for delay of more than 24 hours |
| Medical Emergencies | $10,000 limit for medical expenses, $500 limit for dental, $20,000 limit for transport |
Do I Really Need Airline Insurance?
Airline insurance is not required, but is highly recommended, especially when purchasing non-refundable tickets or traveling internationally. Buying travel insurance from your airline provides you with financial protection when your travel plans don’t go as planned.
If your trip is cancelled or delayed and it involves airfare, hotels, rentals, tours, events and other nonrefundable costs, you often won’t be able to recover all those prepaid expenses — unless you have travel insurance.
In addition, airline travel insurance plans also cover lost luggage and medical emergencies. The latter of which could result in medical bills in the thousands of dollars.
Where Should I Buy Flight Insurance?
Travel insurance is offered through the airline, travel insurance comparison websites and travel insurance companies. A travel comparison website, like Squaremouth, offers the advantage of allowing you to review multiple plans and prices in one place. Whereas airlines and insurance companies may offer more convenience but focus solely on their products.
Buy directly from your airline
Travel insurance for flights is typically offered for purchase by the airline at the time you book your trip. You can also purchase travel insurance from the airline insurance provider as an add-on later, but you may miss out on some benefits only offered when booking your travel.
Use a comparison website like Squaremouth
Purchasing flight insurance from Squaremouth or another comparison website can often save you time and potentially money. You’ll be able to review the best flight insurance companies and compare policy benefits and limits to find the optimum coverage for your trip.
Go through a travel insurance provider
You can also purchase flight insurance from specific travel insurance providers, such as John Hancock, Berkshire Hathaway and others. If you’d like to buy travel insurance from a travel provider, we suggest you compare at least three companies to make sure you have the best coverage for the price.
Airline Travel Insurance vs. Third-Party Travel Insurance
Pros and Cons of Airline Travel Insurance
Airline travel insurance has a convenience factor. It’s offered directly to you at the end of the flight booking process so you can quickly add it to your travel plans. You also avoid setting aside time to shop around for coverage. However, airline travel insurance typically focuses on flight cancellations, delays and baggage problems. This can make it expensive compared to the limited benefits offered.
Pros
- Offered during booking process
- Easy to purchase
- Time saver
Cons
- Limited coverage options
- Limited coverage amounts
- Overpriced for level of coverage
Pros and Cons of Third-Party Travel Insurance
Third-party travel insurance is sold by independent companies. It offers better coverage with more options and benefits. Because third-party travel insurance offers expanded benefits to cover all trip expenses, it’s more cost-effective. However, shopping for insurance after you book your flights and comparing plans can be time-consuming and inconvenient.
Pros
- Covers all trip expenses
- Better coverage
- More cost-effective
Cons
- Less convenient
- Requires time to shop around
Conclusion: Is Airline Insurance Worth It?
Flight insurance can be purchased directly from the airline when purchasing your tickets. This can be a convenient way to get limited protection from unexpected expenses if your flight is disrupted or canceled. Buying travel insurance from a third-party insurance company can give you more comprehensive coverage for all your trip expenses if your travel doesn’t go smoothly. However, visiting a travel insurance comparison website will allow you to quickly compare multiple insurance companies and their plan benefits, as well as check prices to find the best price for your budget.
Written by Lisa Anthony