During the first quarter of 2022, airlines were directly responsible for about 60 percent of late flights. Additionally, flight cancellations rates this year are double the 2013 rates, according to the DOT (United Department of Transportation). Flight cancellation or delay can ruin your vacation and lead to huge costs. A travel insurance policy can help shield you from the costs of trip interruption, cancelation, or delay. Read on to learn more.
What Is Travel Insurance?
Travel insurance is also referred to as trip cancellation insurance. Travel insurance is primarily designed to cover prepaid, nonrefundable travel costs you may incur if your trip is canceled due to a covered reason. It can also cover baggage delays, trip interruptions, and trip delays. Additionally, it can cover emergency cash transfers and loss of passport.
Why Do You Need Travel Insurance Coverage?
Suppose your flight is canceled for reasons listed in your policy, like air traffic control shutdown, airline bankruptcy, or mechanical failure. In that case, your policy will kick in and cover your lost, non-refundable travel expenses. Your policy will cover expenses up to the date and time when you’re meant to travel. If you want a policy that will cover your costs even if you cancel your trip due to reasons not listed in your travel insurance policy, you can get CFAR (Cancel for Any Reason Insurance) coverage. The trip delay coverage includes a daily benefit limit and a total maximum limit. For instance, your policy may offer you, at most, $200 daily and $1,000 in case of a five-hour delay.
Does Travel Insurance Policies Cover Canceled Flights?
If your flight is landing or taking off from an airport in the U.S. and it’s canceled, you’re protected by the Department of Transportation rules. This means the responsible airline must refund you the portion of the travel costs you didn’t use. The airline has to refund you if your flight is canceled and so you don’t need travel insurance to cover the refund. However, even if the airline will refund you, you should also consider the money you’ve spent on hotel rooms, attraction tickets, events, or a rental vehicle. You’ll need to recoup these costs, and that’s where travel insurance comes in handy.
Will Travel Insurance Cover the Cost of Switching Airlines?
If your initial travel carrier can’t convey you to your destination at least 24 hours after your scheduled arrival time, your travel policy can cover the cost of traveling to your destination through another carrier.
Will Travel Insurance Pay for Canceled Connected Flights?
If a connecting flight is canceled, your travel carrier will likely try to switch you to another flight, which may lead to longer wait times. However, if you choose to travel with another airline instead, your travel insurance policy may reimburse you the cost of the canceled flight.
Will Travel Insurance Cover the Cost of a Missed Connecting Flight?
Your airline, in this case, gets you on another flight at no cost. However, if your travel policy also covers missed connections, it can cover the costs that come with the change in your travel plans resulting from the missed connecting flight. At Donald Weiss Insurance Services, we will help you find a travel insurance policy that will adequately protect you during your travels. Contact us today to learn more!