Airline Travel Insurance: What It Covers & Is It Enough?

Written By James ClarkAuthor

Reviewed By Steven BennaEditor

Last Updated: September 29, 2023July 17, 2026 — 9 min read

Key Takeaways 

• Major U.S. airlines like American, United, Delta, and JetBlue offer travel insurance to passengers during the checkout process for an additional fee.
• Airline travel insurance policies are legitimate forms of trip protection, but are often less robust and more expensive than plans purchased from independent travel insurance providers
• Southwest is the only major airline that does not offer some form of trip protection to passengers, mostly due to the airline’s already flexible cancellation policy 
• Third-party travel insurance plans found on Squaremouth typically cover the entirety of your trip with higher reimbursement rates, often at a more affordable price point.
• Compare flight insurance plans on Squaremouth to compare coverage options from leading insurers side-by-side

What is Airline Travel Insurance?

Airline travel insurance is a form of trip protection offered by most major U.S. carriers that can be added to your purchase when booking a flight. These policies are primarily designed to protect you against flight-related disruptions, such as unexpected cancellations or delays. 

Most of the time, it is not your airline that is providing coverage. Instead, airlines partner with reputable insurers who create and underwrite unique plans for their passengers. 

What Does Travel Insurance From Airlines Cover?

Travel insurance that’s purchased through an airline at checkout is intended to cover your flight-specific expenses. 

While coverage can vary from one plan to the next, most airline protection plans will reimburse you for the following scenarios: 

• Flight cancellations due to illness, injury, family emergencies, or other covered reasons. Passengers are generally eligible for reimbursement of up to 100% of their airfare expenses. 
• Flight delays after a set number of hours (commonly 5–6 hours, depending on the airline), covering reasonable expenses like meals, hotel stays, and ground transportation until you’re able to depart.
• Missed flight connections due to a covered delay, with airlines covering the cost to rebook travel arrangements or additional transportation costs, though not every airline includes this benefit.
• Lost or delayed luggage, up to a specified amount for permanently lost luggage. Coverage generally ranges from $500-$1,500, depending on the airline.
• Limited medical coverage with select plans. This coverage is usually capped around $10,000 per person, and in some cases (like United’s) only available on international itineraries.

Comparing Coverage by Airline 

Here’s a glimpse at the coverage each airline offers its passengers based on policy documentation that was available at the time of writing. Keep in mind, benefits and coverage limits can vary based on your state of residence. 

Despite coming from different airlines, the policies highlighted above have more in common than differences, offering most of the same travel insurance benefits. This is especially true among airlines that share an underwriter, like American, JetBlue, and Delta. 

Each policy includes 100% coverage for your airfare and reasonable delay protection. All plans also feature limited financial protection for medical emergencies, although United’s coverage is only available for international trips. 

If you don’t see your airline in the chart above, it doesn’t necessarily mean they do not offer travel insurance. Smaller carriers like Alaska Airlines, Allegiant Air, Frontier Airlines, and Hawaiian Airlines also provide similar protection plans to passengers.  

It’s important to note, however, that Southwest Airlines currently does not sell its own travel insurance product at the time of writing. More on this below. 

Note: Trips That Include Multiple Airlines

The airline insurance you buy only applies to the ticket you bought it with. If you’re booking a “self-transfer” itinerary that includes multiple airlines, you will either need to purchase a separate policy with each ticket or purchase a third-party plan that covers the entirety of your trip.

Does Southwest Airlines Offer Travel Insurance?

No, Southwest Airlines is the largest U.S. carrier that does not sell its own travel insurance add-on at checkout. This is largely because Southwest’s fare structure already includes flexible, no-change-fee rebooking and travel credit for cancelled flights, which reduces the need for additional trip protection. 

However, disruptions like delays, missed connections, medical emergencies, and baggage loss are not built into Southwest’s fare structure. If you’re flying on Southwest and want protection beyond flight cancellations, a third-party plan from a travel insurance provider is your only option. 

What’s Not Covered By Airline Travel Insurance?

As mentioned, airline travel insurance primarily focuses on one thing: your flight. This is great if you experience a delay or need to cancel your trip, but not ideal if you suffer a serious medical emergency or have additional non-refundable expenses outside of your airfare. 

These are major limitations compared to third-party plans, and are important to consider before you purchase trip protection from an airline, as not understanding where your policy falls short can be costly. 

Here are a few things your airline’s travel insurance plan typically won’t cover: 

• Any expenses not booked through your airline, such as your hotel, rental car, and excursions
• Your airfare if you cancel for an uncovered reason, such as fear of travel or a sudden change of plans
• Medical expenses relating to a pre-existing health issue, such as asthma, diabetes, or a recent injury
• Severe medical emergencies that exceed the basic coverage limits provided by most airlines
• Medical evacuations, as well as repatriation of remains 
• Claims relating to adventure sports or high-risk activities, like skiing, cycling, or scuba diving

Common Misconception: Cancelling a Trip

Many travelers assume that purchasing travel insurance from an airline automatically allows them to cancel their trip for any reason and receive a full refund. In reality, Trip Cancellation coverage only reimburses you if you cancel for a covered reason outlined in your policy, such as a covered illness, injury, severe weather, or another unforeseen event. 

Airline Travel Insurance vs. Third-Party Travel Insurance

In almost every situation, a third-party travel insurance plan will offer better coverage and superior value for money. However, if you can’t find a plan that’s right for you, most airlines make it easy to add a policy after you’ve made your booking. 

The table below shows how the average airline travel insurance policy stacks up against a popular plan from Seven Corners that’s available on Squaremouth: 

The biggest gap between airline insurance and a policy from an independent travel insurance provider comes in the form of cancellation and medical coverage, which are among the most expensive disruptions you can face as a traveler. However, slight differences can be found across the board. 

Here’s where third-party coverage excels: 

• Full trip protection: A comprehensive travel insurance policy purchased from a reputable provider is generally the only way to completely protect your trip from the moment you leave home to the moment you return. 
• Medical coverage: Third-party travel insurance generally offers between 10-50 times greater Emergency Medical coverage compared to plans that come from an airline.
• Pre-existing waivers: Airline travel insurance plans rarely protect travelers who have an existing health issue that may flare up during their trip.  
• Cancel For Any Reason (CFAR): This popular add-on is not available for purchase through airlines, which can be a deal breaker for those who want additional cancellation flexibility.
• Comparable (or lower) costs: Airline travel insurance typically runs 7-12% of your airfare, while third-party plans can be purchased between 4-10% of your total trip cost. 

The only real benefit of purchasing an airline travel insurance plan is convenience. For a short, low-cost domestic trip, that convenience might be worth it. But once your trip includes upfront expenses outside of your airfare, the few extra minutes it takes to compare third-party plans is worth it. 

Tip: Getting CFAR-Like Coverage Through an Airline

While CFAR coverage is not usually an option through airlines, many carriers offer fully refundable fares at a slightly higher cost. Purchasing one of these rates essentially lets you cancel your flight for any reason and receive a full refund. This approach is only recommended if you don’t need full trip protection, as a fully refundable ticket does not include medical, delay, or other benefits that come with a travel insurance plan. 

What Can Third-Party Travel Insurance Cover That Your Airline Can’t?

While airline plans can seem sufficient on the surface, they actually leave some large coverage gaps that could cost you down the road. 

A third-party travel insurance plan from a reputable provider can offer the following protection that airlines don’t: 

• Full-trip protection. Unlike airline coverage, a comprehensive plan will cover all of your prepaid, non-refundable trip costs, including your flight, hotel, cruise, rental car, and excursions.
• Cancel For Any Reason. If your plans are uncertain, some third-party plans offer CFAR coverage that allows you to cancel your plans for any reason and receive partial reimbursement. 
• More options: Airlines usually offer just one plan to passengers, while shopping around exposes you to greater options from some of the most trusted insurance companies in the nation. 
• Pre-existing condition waivers. If you’re managing an ongoing health condition, this waiver can be the difference between a covered claim and a denied one.
• Higher medical and evacuation limits. This matters most on international trips, where your U.S. health insurance often doesn’t apply at all. A $10,000 cap doesn’t go far in a real medical emergency abroad.
• Adventure sports coverage. If your trip includes skiing, diving, or other higher-risk activities, you’ll need a plan built to cover them. Compare adventure sports plans on Squaremouth.
• Annual and multi-trip options. If you fly often, an annual plan can cover every trip you take in a year, instead of insuring one flight at a time. 

Is Airline Travel Insurance Worth the Added Cost?

In most cases, no. Since airline policies are typically more expensive, many travelers opt for third-party coverage. 

For a short, simple, domestic trip that doesn’t involve many expenses outside of your airfare, airline insurance may be a decent option. It provides a convenient, easy-to-buy coverage option that offers very basic financial protection. 

However, for most other cases, it’s not worth the cost. Travel insurance from an independent provider is especially beneficial if: 

• You’re traveling internationally
• Your trip costs go beyond your airfare
• You have a multi-leg itinerary with tight connections
• You have a pre-existing medical condition
• You want extra flexibility through CFAR coverage
• You’re cruising or heading somewhere remote where evacuations can be costly
• You’re traveling with family and want broader protection in one policy

Overall, for anything international, expensive, or medically complex, an independent plan gives you meaningfully more protection, usually without a meaningful cost difference. 

FAQ: Airline Travel Insurance

Is it cheaper to buy travel insurance from the airline or a third party?

It’s usually cheaper to purchase coverage from a third-party provider, but it heavily depends on your trip cost and the coverage you need. In a lot of scenarios, travel insurance purchased through an airline will be more expensive than a policy found on a marketplace like Squaremouth. Purchasing through a comparison platform also gives you more options to choose from, allowing you to find plans to fit any budget. 

How do I file a claim with my airline travel insurance?

Since the airline isn’t the underwriter, you’ll file your claim with the insurer (usually Allianz or Travel Guard), rather than the airline itself. Claims information, such as required documentation needed for a claim and contact details, can usually be found in the Certificate of Insurance. 

Can I buy airline travel insurance after I’ve already booked my flight?

Yes. While it’s possible to purchase airline travel insurance at the same time as you book a trip, it’s not necessary. Airlines let you add coverage after your booking has been made. Learn more about buying travel insurance after booking.

Does airline travel insurance cover trip cancellation for any reason?

No, airlines will only cover cancellations caused by specific unforeseen circumstances like a covered medical emergency, the death of a family member, severe weather, or a natural disaster.  For more flexibility, you will need to purchase a fully refundable ticket or purchase a third-party travel insurance plan that includes CFAR coverage. 

Does airline travel insurance cover flight cancellations due to weather?

Yes, inclement weather, natural disasters, and other severe weather events are usually treated as covered reasons for trip delay or cancellation benefits. 

What if my airline doesn’t offer travel insurance (e.g., Southwest)?

If your airline doesn’t sell add-on coverage, an independent plan is your main option for protecting your trip.

Does travel insurance cover me if my airline goes out of business?

Yes, if your airline permanently ceases operations due to bankruptcy before your trip, some travel insurance plans may reimburse your non-refundable prepaid trip costs through Financial Default coverage. This benefit is not included in every plan, so it’s important to review your coverage details before buying your plan.