Does Travel Insurance Cover Cancelled Flights? What Travelers Should Know

August 2, 2024 - Meagan Palmer

Last Updated On

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.

Quick Answer: Does Travel Insurance Cover Cancelled Flights?

Often, yes. Travel insurance may reimburse prepaid, nonrefundable trip expenses if your flight is cancelled for a covered reason such as severe weather, mechanical issues, natural disasters, or certain medical emergencies.

Depending on your policy, coverage may also help pay for:

• Additional hotel stays

• Meals

• Rebooking transportation

• Missed connections

• Unused prepaid trip costs

However, coverage depends on why the flight was cancelled, your policy terms, and whether the event is considered unforeseen.

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, blizzard, 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 those above, it’s expected that 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.

Check out our Travel Insurance FAQ page for other expert answers to top travel insurance questions!

Situation	Usually Covered?	Notes
Flight cancelled due to severe weather	Often yes	May qualify under trip delay/interruption, if duration terms are met
Flight cancelled for mechanical issues	Often yes	Depends on policy and duration terms
Airline staffing shortages	Sometimes	Coverage varies
Missed cruise due to cancelled flight	Often yes	May qualify under missed connection coverage
Voluntary cancellation by traveler	Usually no	Unless CFAR coverage applies per policy terms
Known storms or foreseeable events	Usually no	Often excluded
Additional hotel and meal costs	Often yes	Subject to policy limits under travel delay
Airline-issued refunds	Separate	Airline compensation may apply first

Airline Refunds vs Travel Insurance Coverage

Airlines and travel insurance companies may cover different expenses when flights are cancelled.

In some situations, the airline may provide:

• Ticket refunds

• Flight rebooking

• Meal vouchers

• Hotel accomodations

Travel insurance may help cover additional costs the airline does not reimburse, such as:

• Lost prepaid tours or excursions

• Missed cruise departures

• Nonrefundable hotel stays

• Extra transportation expenses

• Extended travel delays

Yonder Expert Tip:

Know your rights as an air passenger. You’re entitled to a full refund if the airline cancels your flight, not just a voucher. In this case then, travel insurance could help cover any secondary losses related to hotels, missed tours, etc.

Many travel insurance policies also require travelers to first seek refunds or compensation directly from the airline before filing an insurance claim.

Who Pays for What?

The table below breaks down if the airline or travel insurance typically reimburses expenses in certain scenarios for extra clarity.

Expense Type	The Airline Usually Pays If…	Insurance Usually Pays If…
The Ticket Cost	They cancel the flight for any reason.	The airline refuses a refund or the traveler cancels for a covered reason.
Meals & Hotels	The delay is their fault (Mechanical/Staffing).	The delay is weather-related or meets the time trigger of the policy.
Lost Prepaid Tours	Almost never.	Usually, if the cancellation or interruption is for a covered reason.
Alternative Flights	They can rebook you on their own planes.	You have to book a new flight on a different airline or there are added costs to rebook with the original airline.

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

• Unannounced strike

• Officially closed roadways that prevent you from departing

Yonder Expert Tip: A “common carrier” is usually considered to be scheduled airlines, trains, and buses. If a traveler misses their flight because their Uber or Lyft broke down or got stuck in traffic, that’s typically not a covered reason for a flight cancellation claim.

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.

Common Flight Cancellation Situations Where Travel Insurance May Help

Your flight is cancelled due to severe weather

Travel insurance may reimburse hotel stays, meals, and additional transportation costs if your delay meets the policy’s minimum time requirement.

You miss a cruise departure because of a cancelled flight

Missed connection coverage may help reimburse transportation costs to catch up with your cruise or tour. Make sure the delay duration meets the policy term’s minimum time requirements.

A cancelled flight forces you to cut your trip short

Trip interruption coverage may reimburse unused prepaid trip expenses and additional transportation costs home if the cancellation causes you to be unable to continue your trip.

Yonder Expert Tip: Most plans will only reimburse alternative transportation 100%-150%, depending on the Trip Interruption coverage included. Learn more about how this coverage works and provides reimbursement in our Trip Interruption Travel Insurance guide.

Your airline stops operating flights unexpectedly

Some policies may provide limited coverage if a travel supplier suddenly ceases operations for a covered reason, depending on the plan.

You’re stranded overnight because of delays

Travel delay benefits may help cover extra meals, accommodations, and local transportation expenses you pay out-of-pocket during the delay.

What Counts as a Foreseeable or Known Event?

Travel insurance is designed to protect against unexpected events. If a storm, airline strike, or major disruption is already publicly known before you buy your policy, coverage for related cancellations likely apply.

Buying travel insurance shortly after booking your trip can help maximize your coverage options before disruptions become foreseeable. Check out our resource on when you should purchase travel insurance for more details.

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, 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 purchased a policy through our site

2. Complete the appropriate claim form and collect all necessary supporting documents

3. Submit the claim to your provider or Yonder (if a customer)

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

5. 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 provide the coverage you need.

What You May Need to File a Flight Cancellation Claim

If your trip is disrupted by a cancelled flight, keeping documentation can help simplify the claims process.

Travel insurance providers may request:

• Proof of flight cancellation or delay from the airline (including reason and duration)

• Receipts for hotels, meals, or transportation

• Airline cancellation notices (via email or screenshots from an app)

• Prepaid trip receipts and credit card statements showing line items

• Proof of unused travel expenses

• Original booking confirmations

Saving emails, text alerts, and airline notifications can also help support your claim. Check out our guide on filing a successful travel insurance claim for the full process breakdown.

Flight cancellations can quickly create unexpected expenses and disrupt carefully planned trips. Travel insurance may help reimburse eligible costs related to delays, interruptions, missed connections, and cancelled flights depending on the reason for the disruption and your policy coverage.

Reviewing your travel insurance benefits before your trip can help you better understand what protections may apply if your travel plans suddenly change.

Does Travel Insurance Cover Cancelled Flights FAQs

Tags: travel insurance, cancellation