How Trip Delay Insurance Works

Many people don’t realize that airlines are not always required to reimburse traveler expenses for flight delays. While many carriers will pay for a traveler’s food and lodging if their flight is significantly delayed, they will typically not cover it if they decide the reason for the delay isn’t their fault (i.e., bad weather).

This is a common occurrence that can be frustrating for travelers who are expecting compensation, and the U.S. Department of Transportation (DOT) recently stepped in to address the issue, passing a new rule declaring that passengers on flights to, from, or within the U.S. are entitled to an automatic refund from their carrier if any of the following apply:

• Your flight is canceled or changed significantly, and you don’t want to be rebooked or take the flight;
• Your checked baggage is significantly delayed;
• You paid for extra services, such as in-flight Wi-Fi, that weren’t provided.

According to the DOT, the following would be considered a “significant change”:

• A domestic flight that departs or arrives more than three hours before or after it was scheduled;
• An international flight that departs more than six hours before or after it’s scheduled;
• The airport you’re arriving in or departing from changes;
• The number of connections increases;
• You’re downgraded to a lower class of service;
• If you have a disability, you’re offered a less accessible or accommodating flight or connection, either on a different plane or at a different airport.
  Of course, as with any policy, there are still some exceptions, and trip delay insurance can help cover those gaps.

What Trip Delay Insurance Covers

Trip delay insurance covers any reasonable expenses you might incur during the course of your delay.

Covered trip-delay expenses include things like:

• Extra meals or snacks
• Additional accommodation
• Local transportation, such as a taxi ride to a hotel room nearby
• Any personal items, such as toiletries or medication, you have to purchase during your delay

Most travel insurance policies require a minimum length of time before delay coverage kicks in. It’s usually somewhere in the region of six to 12 hours, but check your specific policy for details.

Trip delay insurance also covers delays for a variety of reasons that airlines or other carriers typically won’t reimburse you for, such as weather or any unforeseen events.

What Trip Delays Are Not Covered By Travel Insurance

If you do get reimbursed by your airline or other carrier for a delay they caused, you can’t also make a claim on your trip delay coverage.

If the delay in question is under the minimum time threshold stated by your policy, you can’t claim for expenses incurred during that period.

And if you yourself are the cause of the delay — say, you missed your first flight because you were late to the airport and had to wait around for the next one — that will not be covered by travel delay insurance.

Trip Delay vs. Trip Interruption Insurance

Trip delay benefits and trip interruption coverage are two separate things. See the table below to understand the different benefits and why you might need them.

Tips and Factors to Consider When Selecting a Trip Delay Insurance Policy

• Be aware of any exclusions stated by your policy, and be clear on the instances in which it won’t cover a delay, such as when you’re already being reimbursed by the airline.
• Look at the minimum time required before your travel delay coverage kicks in. That way you’ll have a sense in advance if a delay is likely to be covered by your travel insurance, and whether or not you should try to make a claim.
• Be aware of what specific items are considered reasonable expenses during a delay. These usually include food and drink, accommodation, transportation, and personal essential items.
• Be aware of the maximum benefit paid out by your trip delay coverage. That will help prevent you from overspending on meals or accommodation that won’t be reimbursed.
• Make sure you know what kind of proof your carrier requires for reimbursement of expenses — that way if you hit a delay, you’ll be one step ahead of the game. In general, you’ll want to keep a detailed record of all the expenses incurred throughout the course of your delay, including proof of the delay from the carrier stating the length of the delay, as well as receipts and other proof of your spending. This will make it much easier to make a successful claim.