Here’s what you need to know about flight insurance before you buy.

From flight delays to damaged bags, air travel can be stressful. Thankfully, there’s a range of flight insurance options that will cover expenses in case something goes wrong and provide peace of mind, even if everything goes as planned.

What is Flight Insurance?

Flight insurance is a type of policy that specifically protects the cost of your flight and associated flight-related expenses. This type of insurance commonly includes coverage for trip cancellation, trip interruption, flight delays, and lost or damaged baggage. Conversely, unlike comprehensive travel insurance, flight insurance does not cover emergency medical expenses or emergency evacuations.

Here’s everything you need to know about flight insurance so you can decide which plan is best for you.

Pros of Flight Insurance

The most notable benefit of purchasing flight insurance is the financial protection it offers if issues arise. Additionally, even if your trip proceeds without incident, the reassurance you gain may outweigh the relatively minor expense involved with a basic policy. In 2022, the average cost of a flight insurance policy was approximately $266, while the average payout reached $2,157, as reported by Squaremouth, a travel insurance comparison website.

Cons of Flight Insurance

Ironically, the most significant drawback of purchasing flight insurance is witnessed when your trip unfolds smoothly. “If you have it, chances are you won’t need it,” states Faith Ann Liuzzo-Bartholomew, a travel advisor and member of the American Society of Travel Advisors. This creates a puzzling situation when deciding on flight insurance.

“Flight insurance guarantees your hard-earned dollars and trip plans are safeguarded in the event of unexpected issues,” Liuzzo-Bartholomew adds. However, if your travel experience is problem-free, the cost of flight insurance may seem unnecessary.

Types of Flight Insurance

There are various types of flight insurance, each addressing different travel aspects.

Airline-issued Flight Insurance Policies

You can conveniently acquire flight insurance directly from the airline during ticket purchasing. For instance, American Airlines offers flight insurance policies through Allianz Travel, covering trip cancellations, delays, and lost or damaged luggage. Meanwhile, United Airlines provides policies through AIG that include flight cancellations, missed connections, and lost baggage protection.

However, these policies typically offer basic coverage, according to Liuzzo-Bartholomew, implying that if you add the insurance at the time of purchasing the flight, you should expect limited protection focusing on delays, cancellations, and luggage issues.

Comprehensive Travel Insurance Policies

For those planning a significant journey or seeking extra peace of mind, a comprehensive travel insurance policy can be advantageous. These policies encompass more coverage than standard flight insurance plans.

Additionally, lookout for policies that offer the option to upgrade to “Cancel for Any Reason” (CFAR) insurance, permitting travelers to cancel under various circumstances not covered in their primary policy. Nevertheless, these upgrades come with additional requirements regarding the timeline for both adding the coverage and canceling for reimbursement eligibility.

Credit Card Travel Insurance

Many credit cards provide complimentary flight insurance, protecting you during disrupted travel circumstances. For certain travelers, the coverage offered by their credit cards may be sufficient.

The Chase Sapphire Reserve boasts an impressive policy featuring trip cancellation, interruption coverage, and benefits for lost and delayed baggage. Similarly, The Platinum Card from American Express includes compensation for trip cancellations and interruptions.

It’s crucial to note that not all airline co-branded credit cards automatically include flight insurance. Certain cards, such as the United Club Infinite Card, may include some form of coverage, whereas others, like the Citi/AAdvantage Platinum Select World Elite Mastercard, do not.

Always ensure that your flight is charged to the card that offers the insurance coverage for your policy to be effective.

How to Choose the Best Policy

Given the variety of flight insurance options, it’s essential to conduct thorough research to select the policy that aligns with your travel needs.

Mitch Krayton, owner of Krayton Travel and a member of the American Society of Travel Advisors, suggests clients assess their top concerns. “Identify the risks that matter most in your travels and determine what support and financial coverage you are willing to pay extra for,” he explains.

The suitable flight insurance policy hinges on your travel style. A couple frequently enjoying weekend getaways in the U.S. might find the basic offerings from the airline or credit card adequate.

However, contrastingly, Pamela Holt, a travel expert and host of “Me, Myself & The World: The Art of Solo Travel,” emphasizes that frequent solo travelers might opt for comprehensive travel insurance, especially if they need flexibility in their travel dates.

How to Use Flight Insurance

Envision the scenario where your flight is canceled. The airline reschedules you for the next available flight—not until the following morning. Although a hotel voucher may be provided, you could still incur additional costs. Flight insurance can cover these expenses, such as transportation and meals not compensated by the airline.

In instances where you must file a claim through your credit card’s travel insurance, ensure that any costs are charged to the insured card. Retain all receipts and relevant documentation proving your flight was delayed or canceled.

If you need to claim for damaged baggage, act promptly. Most airlines require claims to be submitted within 24 hours of arrival. Airlines must cover certain damages, but having flight insurance can help bridge the gaps in coverage.

If you secured flight insurance from an airline or a travel insurance agency, remember to gather receipts for all unreimbursed expenses, as well as proof of your disrupted itinerary. It’s advisable to file your claim promptly upon returning home to adhere to any timing restrictions set by your policy.