Is it worth buying travel insurance for flight cancellations?

ByEmmaPatch

Kiplinger’s Personal Finance

Q: International flights aresoexpensive thesedays. Is itworthbuyingtravel insuranceif forsomereasonIcan’tmakea flight? A: If you’re mainlyworried about losing money on costly international flights, think again before you pay to insure them. That also goes for travel insurance plans offered at checkout when purchasing a plane or train ticket. Although it may seem like a small expense in exchange for the added flexibility, keep in mind that most airfares already have built-in flexibility.

MajorU.S. airlines made permanent changes during the pandemic, allowing flexible bookings for most tickets. That means youwon’t have to pay a fee if you need to change your flight— if you don’t buy the cheapest fares. (Southwest allows free changes for all tickets.)

Also, some travel providers offer flexibility on bookings made within a certain time. For instance, the major airlines and Amtrak offer a refund in the first 24 hours after a booking if you must cancel or change your itinerary.

Plus, when an airline cancels your trip — as long as the flight is arriving at and/or departing fromaU.S. airport— you are legally entitled to a refund, perU.S. Department ofTransportation regulations. Anairline will often automatically issue a credit or voucher for a canceled flight, but be sure to request a refund if that is what youwould prefer, as is your right. Also, if there has been a substantial schedule change (typically of two hours or more) and you decide not to take that flight, you are entitled to a refund of your fare.

Of course, travel insurance covers more than canceled flights. Whether you should purchase a policy depends on if you’ll have to pay a lot out of pocket if you must cancel or postpone your plans. And you need toweigh those costs against the price of insurance.

According to data fromSquareMouth, a travel insurance comparison site, the overall average cost among all single-trip travel insurance policies purchased on its site in 2023was $283. Comprehensive travel insurance policies averaged at $403, while medical-only policies cost on average $96.

The amount you pay for a policy depends on several factors: the length of your trip, the number of travelers you need to insure and even your age. Abetter estimate is4% to 11% of the total cost of a trip, experts say.

LUCIAN MILASAN/DREAMSTIME