Is Flight Insurance Worth It?
When we think of trips, words such as “enlightening,” “picturesque,” or “relaxing” may come to mind. But there’s no doubt that they’re “expensive,” too— and a good portion of travel costs usually apply to flight fees. More and more, travelers are considering flight insurance to protect their airline investment should things go wrong. But is it the right choice? Find out below:
What is Flight Insurance?
Flight insurance (also called airline travel insurance) is a type of insurance that covers your airline costs if your flight plans don’t go as expected. In a more literal sense, it’s an agreement you make with a travel insurance company, airline, or travel agency concerning any flight-related funds or assistance you’re due under specific circumstances.
The point of flight insurance is to minimize stressors related to unforeseen situations caused by flight disruptions. Flight insurance coverage may vary widely from provider to provider and policy to policy.
With typical flight insurance, you may be able to get compensation when your flight is significantly delayed or canceled.
But it’s important to know that there are stipulations that govern your policy. For instance, weather-related flight cancellations may be covered, but those related to aircraft mechanical issues may not be. This is why it’s important to understand the levels of coverage.
Read here to learn about what AXA Travel Protection plans cover.
Flight Insurance Comes in Several Forms
Flight insurance won’t be identical across the board. It comes in multiple forms, depending on where you purchase it. Here are a couple of types of flight insurance you may come across:
- A travel insurance policy that includes flight benefits. A travel insurance policy often includes nonrefundable airline expenses related to cancellations, delays, and interruptions - some portion of airline ticket costs are typically covered. You might get this policy from a company, like AXA Travel Insurance.
Let’s say you want to insure your entire trip with a travel insurance plan that covers general unexpected events and expenses. Some policies include trip cancellation and interruption benefits that reimburse you for nonrefundable expenses like airline tickets.
- Third-party travel site or airline-provided flight insurance. When you purchase plane tickets, sometimes you can also buy flight insurance as an add-on. It’ll be billed on top of the ticket price.
The Benefits Included in Trip Insurance for Flights
Flight insurance can offer a refund if you pay for a flight but are unable to board the plane due to a covered reason. This benefit is typically included in trip insurance for flights.
You’re more inclined to receive flight insurance-related compensation if your flight interruption or cancellation is due to illness or an unforeseen circumstance (terror attack, inclement weather, death in the family, etc.). You will not be reimbursed if the situation isn’t covered by your policy.
Usually, flight insurance only covers nonrefundable flight-related expenses. Aside from airfare refunds, some flight insurance coverage may also offer the following benefits:
- Trip cancellation or interruption. If certain circumstances force you to cancel your trip or cut it short, you may be able to get a percentage of your pre-paid expenses back (outside of flights). This may include hotel deposits, cruise deposits, tour guide expenses, and more.
- Baggage coverage. When your baggage goes missing, gets held up, or is damaged in transit, your flight insurance can help you. You’ll be issued a payout up to a pre-determined dollar amount per your policy specifics.
- Trip delays. If your trip is delayed and you’re unable to find a transportation alternative, you may be eligible to receive compensation. This benefit is often paid in a daily allowance, depending on how long the delay lasts.
AXA Travel Protection plans offers coverage in all of these areas.
Things Airline Travel Insurance Does Not Cover
Airline travel insurance coverage is by no means comprehensive, it’s not going to cover things like the following:
Emergency medical services and evacuation. This benefit kicks in if you get sick during your trip and need immediate medical care or evacuation. You may be reimbursed for covered expenses.
Missed Connection Coverage. A benefit that covers you if you miss a connecting flight or another form of transportation. In covered situations, you may be eligible for a daily allowance up to your plan maximum.
COVID-19 travel reimbursement. Coverage that allows for some combination of emergency medical evacuation, trip cancellation, and trip interruption due to contracting COVID-19.
Cancel for Any Reason (CFAR). An add-on enabling you to cancel a trip for any reason. You’ll be reimbursed for qualifying nonrefundable expenses.
Accidental Death and Dismemberment. This benefit covers a portion or all of your expenses after suffering an accident that results in loss of life, limb, hearing, speech, and more.
For these contingencies, you’ll need a traditional travel insurance policy to access benefits. AXA's Travel Protection plans cover all of the above, plus non-emergency medical coverage, rental car damage, lost golf and ski days, and more.
How Much is Flight Insurance?
On average, flight insurance costs around 6% to 7% of your flight cost. Just remember that the amount of money you’ll pay for an average flight insurance plan is dictated by the policy, your travel situation, the cost of your flight, and many other variables.
Do You Need Flight Insurance?
Considering that travel insurance offers much broader coverage than flight insurance, foregoing flight insurance may be best.
Choosing travel insurance is incredibly important for anyone who is investing a substantial amount of money into their trip. Think about it - if you spend $15,000 in nonrefundable travel expenses for your trip, covering only your flight wouldn’t be the best decision from a risk or finance perspective. A travel insurance plan would be the better choice.
Though this is the case, there are a few situations where flight insurance could be a viable option:
- Your trip doesn’t involve any nonrefundable expenses other than your flight.
- The airline you choose doesn’t offer refunds for flights.
- You don’t have a credit card that offers flight-related perks that mimic flight insurance.
- Your flight is a straight shot to your destination.
- You won’t be paying for lodging - maybe you’re staying with a family member or friend.
- You’re not flying out of the country.
- Recouping your flight costs is of the utmost importance to you.
If your trip doesn’t meet the above criteria, consider traditional travel insurance instead.
Flight Insurance and Travel Insurance are Different
There is some overlap between flight and travel insurance, but the two are not the same. To make the right decision for your trip, you need to understand the differences between the two.
The main difference between flight insurance and travel insurance lies in benefits. Flight insurance benefits are targeted specifically toward air travel.
Travel insurance, on the other hand, includes more comprehensive benefits that provide complete coverage for the traveler.
Travel insurance coverage may include reimbursement for nonrefundable flight costs, but flight insurance won’t typically include emergency medical expense reimbursement or adventure sports perks.
Is Flight Insurance Worth It?: Pros and Cons of Flight Insurance
So, is flight insurance something you need for your trip? Let’s take a look at who flight insurance is for:
Flight insurance may be for you if you:
- Want protection from financial loss related to flight interruptions, delays, and cancellations.
- Want extra coverage for select travel-related situations.
- Prefer coverage tailored to fit your travel situation and risk profile.
- Aren’t flying internationally and your flight is your biggest travel expense.
Flight insurance may not be for you if you:
- Need comprehensive insurance coverage. Airline travel coverage is typically very limited, leaving potential gaps that leave you financially vulnerable. Travel insurance offers much broader coverage.
- Don’t have the funds available. Flight insurance is yet another cost you need to factor into your overall travel expenses.
- Are covered under a travel insurance plan or have a credit card that includes flight insurance benefits.
So, is flight insurance worth it? The answer is that it depends on your specific travel needs. Not sure if it’s for you? Contact AXA’s team by calling 855-327-1441 and pressing option 2. AXA’s knowledgeable agents are standing by to answer questions, help you compare your plan options, take payments, and more.
Bon Voyage!
Whether you opt for flight insurance or traditional travel insurance, we encourage you to read and understand all documentation so you can make a well-informed decision regarding your insurance needs. AXA’s Travel Protection plans all have pre-travel flight coverage, so no matter which plan you opt for, you can count your flight covered. To learn more, check out this benefit information page or browse frequently asked questions. Happy travels!
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