Flightmare: Thousands of flights canceled, delayed, do you need insurance?

Flight disruptions have become the new norm this season as the airline industry grapples with several headwinds, including and most notably ongoing staffing shortages, weather and air traffic control restrictions.

In the days leading up to July 4th, airlines have already canceled and delayed thousands of flights. As a result, some passengers may be inclined to purchase insurance for added protection.

However, FOX Business spoke to travel insurance experts, who say that while insurance might work in some cases, it’s not always necessary. If you’re opting for the extra protection, experts also say it’s important to read the fine print first, as certain policies may not always cover what you expect. This includes policies offered through the airline’s website as well as through third party companies.

ticker	security	Last	change	change %
DAL	DELTA AIR LINES INC.	29.61	-0.75	-2.47%
UAL	UNITED AIRLINES HOLDINGS INC.	35.68	-1.29	-3.49%
JBLU	JETBLUE AIRWAYS CORP.	8.96	+0.23	+2.63%
EEL	AMERICAN AIRLINES GROUP INC.	03/13	-0.47	-3.48%

Pros and cons of insurance:

“If the plane ticket is the only travel expense and the only concern is an issue that the airline will work with you on, it may not make sense to buy insurance,” says Meghan Walch, director of product for travel insurance comparison site InsureMyTrip. said FOX Business.

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However, Walch said this may only work for travelers who are willing and able to reschedule their flight within the airline’s allotted time frame.

In addition, “if it was more of a business decision than something that was in the contract with the airline, you would be counting on the airline to live up to their end of the bargain,” Walch said.

On the other hand, if passengers have set days for their trip and other expenses that they might miss out on in the event of a delay or cancellation, “then it may be a good idea to look into third-party insurance and compare coverage for the full duration and prepaid, non-refundable travel expenses,” she said.

“For example, I take a flight to go on a cruise. If you don’t have insurance and your flight is delayed, the airline may offer to put you on a later flight, but you could lose part of it, if not the entire cruise,” Walch said.

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In the event of travel delays, passengers may receive some coverage, depending on the plan, to offset the cost of an extra night of room and board while waiting for another flight, Suzanne Morrow, senior vice president of InsureMyTrip, told FOX Business.

Travel Interruption is a benefit that offers travelers reimbursement of their prepaid, non-refundable expenses in the event they unexpectedly have to interrupt their trip, Morrow added. A good example is when you need to book an emergency flight home.

Insurance can also help a passenger “reimburse additional expenses such as meals or lodging needed while you are stuck at the airport or staying at a hotel, as well as expenses (up to the limit specified in the policy) that you may incur while catching up.” help the cruise,” Walch said.

Some insurance plans may also cover things like lost baggage and medical emergencies.

However, that doesn’t mean uninsured travelers are out of luck. Airlines will continue to try to accommodate passengers when flights are disrupted, particularly due to involuntary changes.

For example, travel waivers allow passengers to change or rebook their trip free of charge if uncontrollable events such as severe weather, impacts on flight and travel dates occur. In a particularly rare move, Delta Air Lines even issued a travel waiver ahead of the busy July 4 holiday weekend.

ticker	security	Last	change	change %
DAL	DELTA AIR LINES INC.	29.61	-0.75	-2.47%
EEL	AMERICAN AIRLINES GROUP INC.	03/13	-0.47	-3.48%
LUV	Southwest Airlines Co.	36.18	-0.49	-1.34%

“We expect to transport customer volumes over the weekend not seen since pre-pandemic times,” Delta said.

The exemption, which applies Friday through Monday, allows travelers to rebook trips either before or after these peak travel days with no fare difference or change fees.

Southwest Airlines told FOX Business that if a customer’s flight is “affected by an involuntary change,” they can change their flight up to 14 days from the original travel date free of charge.

American Airlines stated on its website under the “Involuntary Refunds” section that it will refund passengers if the airline “is not operating as scheduled (a delay in your departure time of more than 4 hours) or we have otherwise refused to fly you to.” release your breach of this contract.”

Read the fine print: Some plans don’t cover everything

There are different levels of coverage depending on which insurance a passenger purchases, whether directly through the airline’s website or through a third party. It’s important to understand what’s included in this coverage, as Morrow says it may not always include things like a rebooked flight, even if you’re rebooked days later.

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“Until you lose money, you don’t get money back,” Morrow said. “At the end of the day, insurance is designed to get someone back to health … so if you haven’t lost money, you’re not entitled.”

If a flight is canceled but the passenger is rebooked, they don’t run out of money, she added.

It’s also important to note that some less expensive policies don’t even cover delayed trips unless they’re delayed by a significant amount of time, Morrow said.

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In certain cases, airlines offer travel disruption and delay cover, but their website may state a “covered” reason.

“They’ll get you there,” she said. “You want to make sure you understand what’s covered and what’s excluded because the exclusions are where they’re really going to get you.”