Trip Delay Insurance: Coverage & Reimbursem*nt Guide (2024)

Travel delay coverage pays for additional services if your trip gets delayed. It includes delays occurring on airlines and other forms of commercial transport, such as buses, trains, passenger boats and other common carriers.

Trip delay benefits can vary depending on the insurance company and coverage limits. However, most policies pay for hotel rooms, meals, other necessities and transport during the waiting period. The insurance company will require that delays are due to covered reasons, such as inclement weather or some other event beyond your control. Oversleeping and missing a flight will not qualify you for reimbursem*nt.

Insurance coverage also requires you to accept rebooking or alternative arrangements offered by the airline. The policy documents will also list delay length and other factors you must meet before you can make an insurance claim.

Travel delay insurance is usually not a stand-alone product. It comes in a package with trip cancellation and trip interruption coverage or as part of a comprehensive policy with medical emergency and evacuation insurance.

Travel insurance plans with delay coverage offer specific advantages to travelers.

• The policy ensures comfort during delays by paying for hotel rooms and meals.
• It also covers additional expenses, such as taxis or ride-shares during your unscheduled stay or any other services you might need.
• Insurance covers reimbursem*nt for unrefunded reservations missed due to the delay.
• You can file a claim for costs associated with resuming your itinerary after a missed connection or other unexpected and uncontrollable delays.
• The coverage provides peace of mind by knowing you are protected even if your airline can’t rebook you or make alternative arrangements.
• The delay claim can also include personal use items necessary for a comfortable stay.
• Coverage extends to common carriers, including airlines, trains, buses and passenger boats.

Many insurers also offer assistance services to help you find or book a hotel or make other arrangements during an extended delay.

Reimbursem*nt for travel delay coverage requires several steps.

The first step is to establish a covered delay. After a flight cancellation or other delay, seek rebooking arrangements. The Department of Transportation says there are no federal requirements for delays, but most carriers will rebook passengers on the next available flight. Your provider will likely deny a travel insurance claim for delay costs if you are offered a rebooking and do not accept it.

The second factor is the amount of time. Each insurer has different limits for delay length before coverage kicks in. For example, Allianz Travel Insurance and Travelex require a five-hour delay for reimbursem*nt, and Trawick International and AIG Travel Guard have a 12-hour time limit. It is important to look for these time limits when you buy travel insurance to ensure they fit your needs.

When making a claim, you will need to provide travel documents that show the delay (such as a ticket, boarding pass or flight number) and provide proof of reasonable expenses. Most insurers allow you to file a claim online or via a mobile app, and many will request that you submit receipts detailing expenses during the delay.

Once the insurer approves the claim, they send reimbursem*nt. However, the payment amount won’t exceed the coverage limit. For example, if the limitation for delays is $500, and you incurred $700 in expenses, the insurer will send a check for $500, not $700.

Trip interruption insurance and cancellation coverage are different from delay protection. Cancellation insurance reimburses you for the cost of a trip you cancel before departure. Interruption coverage protects against significant disruptions, reimbursing you for unused portions of your itinerary and paying for transport home or to your next destination. Delay insurance is for short-term disruptions and only covers the costs you incur until you resume your travel plans.

Companies package trip cancellation insurance with interruption and delay coverage because the three types of insurance work together to provide comprehensive protection.

If you purchase a plan with these three features, you will not have to worry about the most common travel risks on the covered trip. If you fall ill or your destination experiences a natural disaster before departure, cancellation insurance protects your investment. Meanwhile, delay and interruption coverage protect you after departure.

In short, travel protection ensures your plans don’t get derailed by events beyond your control. And if your plans do change due to an illness, weather event or other disaster, you can file a claim for reimbursem*nt.

Travel insurance coverage can help mitigate the risk of delays, but you can take other steps to keep your travel plans on track.

For instance, you can learn what to expect from airlines. The Department of Transportation offers a flight cancellation dashboard that notifies passengers of how different airlines handle delays and cancellations. Armed with this information, you can contact the airline to deal with the delay or cancellation.

You can also plan ahead and have contact information for all travel providers, hotels and other services you book or plan to use on your trip. You can easily notify these providers of any changes due to delays or cancellations.

If you are unable to rebook transport and experience an extended delay, you need to save receipts and other documents to use for your insurance claim. You should always plan spending during a delay to ensure it is under the coverage limit and meets the insurer’s requirements for reasonable expenses.

Delays and cancellations are common in the travel industry. In 2022, about 20% of flights in the U.S. were delayed and 2.69% were canceled. Delay insurance provides compensation for the times when these disruptions last for more than a few hours. This protection allows you to keep your travel budget intact and get back to your itinerary as soon as possible.

Time limits and coverage amounts can affect the compensation and support you get during an extended delay. You should research travel insurers and get multiple quotes to find the best insurer for your needs.