Does Travel Insurance Cover Flight Cancellations? A Comprehensive Guide
Approximately 50% of Americans purchased travel insurance in 2024, according to a survey from Aon, but many are still struggling to understand exactly what their policy actually covers.
In fact, one of the most frequently searched questions is whether or not travel insurance covers flight cancellations. The answer ultimately depends on the policy and the circumstances surrounding the canceled flight. So, in this guide, we’ll explain when and how travel insurance covers canceled flights and what to look for if you’re shopping for a policy.
Does Travel Insurance Cover Canceled Flights in the US?
Most travel insurance policies will only cover the cost of a canceled flight if you were the one who initiated it. If the airline canceled your flight, then it will typically only cover the indirect expenses caused as a result of the cancellation, like meals and hotel accommodation.
Travel insurance works this way because passengers in the US are protected by the U.S. Department of Transportation. So, if your flight is canceled, the airline must offer a refund or a rebooking to your destination. However, they are not required to help you with any costs associated with the canceled flight, like meals and lodging.
Travel Insurance and Flight Cancellations in Europe
If you’re a U.S. passenger traveling in Europe, then the coverage policies may differ when it comes to flight cancellations, and here’s why.
Why Flight Cancellation Coverage is Different in Europe
So, if you are flying from an airport in Europe, the air carrier is required, by EU Regulations, to provide a refund or a rebooking if your flight is canceled. They also have to provide meals and refreshments if you need to wait for your new flight to take off, as well as hotel lodging if you are stranded overnight.
Not only that, but if the flight was canceled because of something the airline could have prevented, like staffing shortages, then you are also owed as much as $650 in cash compensation. Because of this, travel insurance policies will usually only cover the expenses associated with cancellations that were caused by extraordinary circumstances.
This is because the airline will provide care, assistance, and cash compensation for flights canceled for reasons within their control.
When Travel Insurance Applies
So, if your flight was canceled for any of the following reasons, then you can expect your policy to provide coverage. This is because these events are outside the airline’s control, meaning you will not be eligible for cash compensation.
- Dangerous weather
- Civil unrest
- Air traffic control restrictions
- Rocket launches
- Airport strikes, and
- Other events outside the airline’s control
As always, check your specific policy for more details about flight cancellation coverage.
So, in this instance, her travel insurance would cover any expenses caused by the cancellation that Delta would not cover.
On the other hand, if the flight was canceled because of a staffing shortage, then Erin would be able to claim up to $650 in airline compensation based on the rules in the EU. She would also receive meals, refreshments, and hotel lodging if she needed to wait overnight for her new flight. Because Delta would pay for these expenses, travel insurance would not apply. In other words, you can’t be reimbursed by both the airline and your travel insurance.
Flight delayed over 3 hours or canceled? See if AirAdvisor can get you compensation.
Will Travel Insurance Help if the Airline Cancels Your Flight?
If your flight was canceled by the airline, you can usually be reimbursed for any costs associated with the cancellation, especially for domestic U.S. flights. So, if you had to pay for a hotel stay or meals while you were waiting for your new flight to depart, you can usually be reimbursed for these expenses.
Also, if the flight cancellation caused you to miss anything like a cruise, resort or hotel stay, or tours, your travel insurance will cover the cost of eligible missed, non-refundable expenses up to the maximum limits for your specific plan.
But what if your flight is canceled by the airline, and the rebooking they offer doesn’t work for your plans?
Say the airline canceled your flight because of dangerous weather. They offer you a new flight, but it will not arrive at your destination for another 24 hours. The problem is that you have an important event to attend, so this rebooking option will not work at all, because you’ll miss the event completely.
In this situation, you can instead opt for a refund and book a flight with another airline that will get you to your event on time. Your travel insurance would potentially cover the cost of the new flight, after deducting the flight refund.
How Travel Insurance Can Help if You Cancel Your Flight
If you choose to cancel your flight, coverage is based on the reason behind your decision. So, for example, most standard travel insurance policies will cover flights canceled because of sudden illness, a natural disaster, or similar kinds of emergency situations, depending on the policy.
With trip cancellation coverage, you can get reimbursed for a flight cancellation as well as the non-refundable, pre-paid costs of your trip, as long as you canceled your flight for a reason covered in your policy.
With Cancel for Any Reason (CFAR) coverage, you can get more protection in situations like these, but you will only be reimbursed for around 50-75% of the non-refundable trip costs.
Which Coverage is Best for Canceled Flight Protection?
Lots of travelers get confused between what is covered under flight cancellation, trip cancellation, and CFAR insurance policies, so let’s look at the differences.
Trip Cancellation Coverage
Trip cancellation insurance will cover nonrefundable, prepaid flights and hotel bookings if you canceled your trip because of a sudden and unforeseeable emergency like a hospital stay or natural disaster.
You can usually get trip cancellation coverage if you purchase one of the more comprehensive travel insurance plans. Also, some credit cards offer this trip cancellation coverage at no extra cost if you purchased your flight with that specific card.
Flight Cancellation Coverage
Flight cancellation coverage is like trip cancellation coverage, but with a broader scope. If you have this protection in your policy, then you will be reimbursed for the non-refundable expenses resulting from a flight canceled by the airline, including the price of your flight, hotel lodging, and meals.
Cancel for Any Reason (CFAR)
CFAR coverage is usually offered as an upgrade (also called a rider), and it’s exactly what it sounds like. You will be covered if you decide to cancel your flight (and trip) for any reason, but you will only receive a percentage of the trip cost.
Expert Tip from Anton Radchenko, International Lawyer at Airadvisor: “Most standard travel insurance policies do not cover cancellations due to personal reasons. If flexibility is important, look for “Cancel for Any Reason” (CFAR) insurance, which reimburses a portion of your costs.”
Coverage | Does it Cover Flight Cancellations? | What it Covers |
Trip Cancellation | Yes, if you cancel for a covered reason | Non-refundable costs like flight, hotel, etc. |
Flight Cancellation | No, not directly. It only covers indirect costs if the airline cancels your flight | In the US, it usually covers meals, hotel, and expenses caused by the canceled flight |
CFAR | Yes, if you cancel your flight | Usually covers 50-75% of non-refundable costs like tours, hotel, flights, etc. |
What to Look for in a Policy for Canceled Flight Protection
More and more travelers are considering insurance to protect their trips, especially for canceled flights. But with so many insurance companies and travel policies to choose from, you might not know where to begin.
Here are a few things to be aware of if you’re looking for a policy that will protect you against canceled flights:
- Covered Reasons: Be sure the plan you’re considering will protect you if you cancel your trip (and flight) for illness, extreme weather or natural events like hurricanes, or other unforeseen occurrences.
- CFAR: If the policy allows you to add this option, be sure to ask about the cost for this kind of coverage, as it’s usually more expensive.
- Limits of Coverage: Make sure that you’ll be insured for the proper amount to protect the total cost of your trip.
- Travel Delay Benefits: Cancelled flights in the U.S. can lead to considerable costs like meals and hotel stays, so make sure the policy will offer this coverage.
- Trip Interruption Benefits: If you have to suddenly abandon your plans because of a sudden illness or emergency, trip interruption coverage can help you recoup the costs, including for canceled flights.
- Exclusions: Be sure to carefully read and understand what is not covered by your policy, so you won’t have any surprises.
Flight Cancellation Policies of Major Travel Insurance Providers
If you’re thinking about buying protection for your next trip, here are the cancellation policies for a few of the biggest insurance companies.
Travelex Insurance Services
- Trip Cancellation: Covers 100% of the trip cost if it was cancelled for covered reasons.
- Trip Interruption: Covers additional costs if your journey is interrupted for covered reasons.
- CFAR: Up can upgrade your plan to include CFAR, and it will reimburse you as much as 75% for non-refundable parts of your trip if you bought it within 15 days of the initial trip payment.
Nationwide Insurance
- Trip Cancellation: Provides up to 100% of the trip cost if it was cancelled for covered reasons.
- Trip Interruption: Covers as much as 150% of your trip if it is interrupted for covered reasons.
- CFAR: You can add-on CFAR with certain plans, reimbursing you up to 75% for non-refundable parts of your trip if you bought it within 21 days of the initial trip payment.
IMG (iTravelInsured Travel LX)
- Trip Cancellation: Protects you up to 100% of the trip cost if it was cancelled for covered reasons.
- Trip Interruption: Covers as much as 150% of your trip if it is interrupted for covered reasons.
- CFAR: CFAR is actually included in this policy, providing up to 75% reimbursement for non-refundable parts of your trip if you bought it within 20 days of the initial trip payment.
Bottom Line
Even though airlines are required to offer refunds and rebooking if your flight has been canceled, you might still have considerable expenses as a result. With the right travel insurance coverage for canceled flights, you can recoup these extra costs if the flight was canceled by the airline. Otherwise, you will have peace of mind knowing that the non-refundable parts of your journey will be reimbursed if you need to suddenly abandon your travel plans.
Figuring out how much you are owed for a disrupted flight can be complicatedWe're here to help. Let us assess your compensation for you.Check Your Flight
No feedback
Leave your feedback
Flight Compensation Calculator:
Check if you are entitled to flight delay compensation in just 3 minutes.
