Does Travel Insurance Cover Cancelled Flights?

August 2, 2024 - Meagan Palmer

Being prepared for your trip to change at any point before takeoff is key to adapting to the ever-changing travel industry. One sure way of doing that is by having a travel insurance policy in place to protect your trip costs and travel expenses like flights. But just how far does insurance for flight cancellations or delays reach when it comes to coverage? Yonder Travel Insurance explains below how coverage can and maybe can’t help when it comes to flight cancellations, changes, and delays.

Jumping Ahead

• Does travel insurance cover cancelled flights?
• Does travel insurance cover delayed flights?
• Does travel insurance cover missed connections?
• Are flight changes covered by travel insurance?
• How to Safeguard Your Travel from Flight Cancellations & Delays
• Differences Between Flight Insurance & General Retail Travel Insurance
• Should I file a claim with my airline first?
• How to File a Travel Insurance Flight Cancellation or Delay Claim

Does travel insurance cover cancelled flights?

The short answer: It depends. Most travel insurance policies do include trip cancellation coverage if your flights are cancelled, but under specific circumstances. Keep in mind that not every reason for flight cancellation is covered. Travel insurance aims to protect your insured non-refundable trip costs if you suddenly have to cancel your trip. Here are a few covered reasons flight cancellation benefits could apply:

• Your flight gets cancelled due to bad weather like a hurricane, blizzards, or a storm.

• The aircraft itself has a mechanical breakdown, causing your flight to be cancelled.

• Your flight gets cancelled due to an unannounced airline labor strike.

• The airline goes bankrupt and cancels your flight.

Curious about what other trip cancellation reasons are covered? Check out our comprehensive guide on what kind of cancellations are covered by travel insurance.

What costs does travel insurance cover if your flight is canceled for these reasons?

Trip cancellation benefits could reimburse the nonrefundable expenses you insured such as your airfare, hotel bookings, and even prepaid tours or tickets you can’t attend anymore. So, if something disrupts your travel plans, having a policy with trip cancellation benefits can help ease the financial blow!

What do airlines typically provide when they cancel flights?

Passengers may receive a full refund for their ticket if they choose not to travel after their flight is cancelled. Alternatively, airlines often provide rebooking on the next available flight at no extra charge. Sometimes, they might offer travel vouchers or credits for future flights. 

Additionally, if the cancellation causes significant delays, airlines may cover expenses for meals, accommodations, or transportation, especially if passengers are stranded overnight. It’s always a good idea to check the airline’s policy since not all offer this.

Types of Flight Cancellation Reasons Not Covered By Travel Insurance

• System/technical outages

• Lack of staffing

• Overbooking

• Operational issues

Even if you have Cancel for Any Reason insurance, travel supplier cancellations aren’t typically covered under travel insurance. This means that if your common carrier cancels your flight for reasons like above, it’s expected they are responsible for reimbursing or accommodating you for that lost expense. Yonder recommends reaching out to your travel agent or airline for their cancellation policies.

Does travel insurance cover delayed flights?

Most travel insurance policies cover unexpected costs incurred during delays. This coverage is called “trip delay”. These delay benefits mean you could be reimbursed for things like meals, local transportation, and even accommodations if you get stuck somewhere overnight. 

Some policies might also cover transportation expenses to and from the airport if you need to find a hotel. So, while waiting for the next flight out, you can rest a little easier knowing that your insurance can help cushion the financial impact of those unexpected delays!

If a covered delay causes you to miss out on prepaid hotels, other flights, tours, or excursions you had planned, trip delay or trip interruption (depending on the scenario) could provide reimbursement for these lost expenses. Additionally, some policies would also reimburse the cost of rebooking additional airfare to rejoin your trip.

What types of delays are usually covered?

• Any type of common carrier delay

• A delay caused by a traffic accident (that you aren’t directly involved in) on your way to your departure

• Your passport, travel documents, or money gets lost or stolen

• Natural disasters

• Civil commotion or riot

• Quarantine

• Unnaounce strike

• Officially closed roadways that prevent you from departing your trip

Scenario #1: Severe Weather Delay

Imagine you’re traveling to a tropical destination, but your flight is delayed for several hours due to a severe thunderstorm. Because of the delay, you miss your connecting flight to the final destination. Your travel insurance policy covers trip delays, so you can file a claim for reimbursement of expenses like meals at the airport and a hotel stay if you need to wait overnight for the next available flight.

Scenario #2: Mechanical Breakdown

You’re on a trip to visit family, and your first flight is delayed due to a mechanical issue with the aircraft. As a result, you miss your connecting flight to your final destination. Your travel insurance includes coverage for delays caused by mechanical breakdowns, allowing you to claim costs for food and accommodation while you wait for the next flight. Additionally, if you had pre-booked activities at your destination that you missed because of the delay, you can also seek reimbursement for those nonrefundable expenses.

What do airlines typically provide for delayed flights?

Unfortunately, airlines aren’t required to offer you a reimbursement of any extra expenses incurred for things like hotels, meals, and local transportation. Unless the delay is significant or the airline voluntarily offers reconciliation, you shouldn’t rely on the airlines to provide financial assistance in these situations. Yonder recommends purchasing travel insurance in the event your flight is affected to protect your travel budget.

Does travel insurance cover missed connections?

Yes, if you miss a connecting flight due to a delay or cancellation of your previous flight, travel insurance could apply. Keep in mind that not all policies include this coverage, so it’s best to review your insurance. Usually, travelers taking a cruise or a tour type of trip benefit the most from this option.

We won’t go into too much depth here since we already have another article about missed connections coverage. However, this benefit could reimburse you for costs like rebooking your flight on the next available option.

Are flight changes covered by travel insurance?

On the other hand, if the airline makes a change to your itinerary or cancels your flight, your travel insurance plan could provide coverage for the change fees to reissue your ticket. Some policies will even reimburse you for the unused event or activity expenses that you missed out on due to the change.

“Look for policies that include itinerary change or change fee coverage in the certificate”, recommends Terry Boynton, co-founder, and president of Yonder Travel Insurance. “If you need assistance finding a policy that includes these specific benefits, our team of friendly humans and experts would be happy to point you in the right direction or get a quote”.

How to Safeguard Your Travel from Flight Cancellations & Delays

The simple answer: buy travel insurance! A policy provides you with peace of mind because it protects you from the financial impact of unforeseen disruptions. So even if the airlines aren’t able to help you out, there’s a good chance travel insurance can.

That way, you can focus on enjoying your trip rather than worrying about potential setbacks. Not all policies offer the same benefits, though. Keep reading to learn what to look out for.

“Most plans will include trip cancellation, trip interruption, and travel delay benefits”, says Boynton. “The key is making sure you get a plan that includes the covered reasons that could affect your trip and the right amount of maximum limits”.

Differences Between Flight Insurance & General Retail Travel Insurance

Usually, the biggest drawbacks of the flight insurance offered by airlines vs. retail travel insurance options are the included benefits and the costs you can insure. Flight insurance through the airline will typically only protect your flight costs, not any of your hotels booked through other sites. Plus, it may also include lower benefit maximums or be missing particular benefits that third-party insurance offers.

General retail travel insurance, like plans offered on Yonder, is usually more comprehensive. In addition to your flights, you can also insure the cost of your accommodations, tours, excursions, and any other prepaid nonrefundable booking you’ve paid towards your trip. You can also opt for coverage upgrades like CFAR and pre-existing condition waivers.

Should I file a claim with my airline first?

Even with travel insurance, you may need to work with your airline first if you encounter any travel bumps. Airlines often provide immediate assistance, such as rebooking flights, issuing meal vouchers, or arranging hotels. It’s important to resolve any immediate travel needs with the airline.

Once the situation is under control, then you can file a claim with your provider for any additional expenses incurred due to the delay or cancellation, such as food, accommodations, or missed activities that the airline does not cover. 

Pro Tip: Make sure you keep all receipts and documentation from both the airline and the travel insurance claim. You’ll likely need to submit these and flight delay or cancellation documentation from your airline (including the reason for the delay or cancellation) to your provider during the claims process.

How to File a Travel Insurance Flight Cancellation or Delay Claim

If you need immediate assistance figuring out the next steps if your flight gets cancelled or delayed, Yonder recommends contacting your policy’s emergency provider. However, once you return home, you can contact your travel insurance company to file a claim.

We’ve already written an article on how to open a claim, but in general, here are the steps we’d recommend

1. Reach out to your provider or Yonder if you’ve purchase a policy through our site

2. Complete the appropriate claim form and collect all necessary supporting documentsSubmit claim to your provider or Yonder (if a customer)

3. Await correspondence from provider regarding status of your claim or if they need additional documentation

4. Claims typically take anywhere from 30-60 business days once the provider receives all documentation needed to assess the claim

If you have yet to purchase a travel insurance policy and are concerned about an upcoming trip, make sure to check with an expert first to ensure you’re purchasing a plan that will implement the coverage you need.