Does travel insurance cover non refundable flights? When you book a trip, it often involves a series of non-refundable expenses, and one of the most common is airfare.
Non-refundable flights are mainly cheaper than refundable ones, and this feature makes them an attractive option for travelers who want to save money.
However, they come with a risk: if your plans suddenly change due to an emergency or unexpected event, you may lose the full amount paid for your ticket. This poses a serious question: “Does travel insurance cover non-refundable flights?”
Travel insurance is designed to protect travelers from financial loss due to situations that can’t be controlled like illness, weather disruptions, or personal emergencies.
One of its most valued benefits is trip cancellation coverage, which is especially useful when dealing with non-refundable flight tickets.
How Travel Insurance Handles Non-Refundable Flights
When you buy a non-refundable ticket, you agree that the airline won’t return your money if you cancel for personal reasons.
However, with travel insurance, especially with policies that include trip cancellation coverage. You may be able to recoup those costs if your cancellation is due to a covered reason.
Trip cancellation coverage is a benefit that reimburses you for all pre-paid, non-refundable expenses if you have to cancel your trip for reasons beyond your control.
Furthermore, non-refundable airfare falls directly in this category. If your trip is cancelled for a reason listed in your insurance policy, the cost of your flight may be reimbursed up to the policy limits.
Examples of Covered Reasons
Here are some of the covered reasons that may be included in the policy:
- A serious illness or injury to you, a travel companion, or a close family member
- Unexpected job loss or required work obligations
- Terrorist attacks in your travel destination
- Jury duty or required court appearances
- Death in the family
- Natural disasters affecting your home or destination
- Your residence becoming uninhabitable due to a disaster like a fire or flooding.
However, if you cancel because you simply changed your mind, or decided not to go, the standard travel insurance will not cover that loss.
Limits and Exclusions
Despite how trip cancellation coverage may sound simple and straightforward, there are limits and exclusions that can affect whether your non-refundable flight is reimbursed. They are:
- Wanting to cancel for personal or emotional reasons, or because you changed your travel plans, is not covered.
- Buying travel insurance after a potential threat or event becomes public knowledge may disqualify you from reimbursement.
- Government warnings or fear of a potential threat like a pandemic, war, or civil unrest are typically not valid reasons unless explicitly stated in the policy.
- If you cancel your trip due to a health issue that existed before you purchased your insurance. It may not be covered unless you bought a waiver or a policy that includes pre-existing condition coverage.
To ensure you’re protected, always read your policy in full, pay attention to the covered reasons. And consider add-ons like Cancel For Any Reason (CFAR) if you want maximum flexibility.
The Cancel For Any Reason (CFAR) Feature
If you’re worried about flexibility or want to be reimbursed for a cancelled non-refundable flight for any reason. You might want to consider adding a CFAR (Cancel For Any Reason) upgrade to your travel insurance policy.
The CFAR feature gives you the option to cancel your trip for reasons not covered under standard trip cancellation policies. So, this means that if you simply decide not to travel, you can still receive partial refunds.
These refunds are usually between 50% to 75% of your pre-paid, non-refundable expenses, including flights. Some essential facts to know about the CFAR feature are:
- You must purchase CFAR soon after your initial trip deposit—usually within 14 to 21 days.
- You must insure the full non-refundable cost of your trip.
- It costs more than standard coverage but offers more flexibility.
- You’ll need to cancel your trip at least 48 hours before departure.
CFAR is specifically useful for travelers who have uncertain schedules or those traveling during potentially disruptive seasons or regions.
How to File a Claim for a Non-Refundable Flight
If you’ve canceled your flight for a covered reason and want to claim reimbursement through your travel insurance, here’s what to do:
- Notify the airline first and request any possible refunds or credits.
- Contact your travel insurance provider to inform them of your cancellation.
- Gather required documents, which typically include Proof of your non-refundable payment, the cancellation policy of the airline, medical or legal documentation supporting your reason for cancellation and a claim form completed with your insurer
The quicker and more thoroughly you provide documentation, the faster your claim can be processed.
