Flight Cancellation
insurance

How to Insure Against Flight Cancellation

How to Insure against Flight Cancellation?

A few years ago there was considerable concern over the fact that airlines were going bust which left literally tens of thousands of UK passengers stranded without hope of compensation.

This meant that if they wanted to board a flight for their journey or to get home, a new ticket had to be paid out of pocket.

Of course there are travel insurance policies which cover flight cancellations, but many passengers didn’t see the need to protect themselves. At the moment, largely due to the failure of so many airlines in recent years, there are actually two main types of flight cancellation insurance which can be purchased.

Standalone Scheduled Airline Failure Insurance

Before discussing other types of flight cancellation insurance, it might be a good idea to understand what SAFI (Scheduled Airline Failure Insurance) is.

This is a specific insurance that covers flight cancellations which are the result of an airlines going bankrupt. In other words, this type of flight cancellation insurance does not cover flights that are grounded due to inclement weather or hijackings.

How to Insure against Flight Cancellation

The only purpose SAFI serves is to cover the comparable cost of airline tickets in the event that a financial crisis prevents the airlines from operating their aircraft.

In today’s economic downturn this may seem logical, but there are better types of flight cancellation insurance with much broader cover.

Flight Cancellation and Travel Insurance

Due to the relative cost, flight cancellation insurance which is part of a travel insurance policy is actually a much better choice because of the wider range of cover these policies offer.

A basic travel insurance policy does cover flight cancellation but it also covers travel cancellations by other modes of travel as well. For example, if part of the trip is flight and part is by train, a basic travel insurance policy would cover either leg of the journey.

Should the airline go bankrupt or the plane be grounded due to a snowstorm, the traveller would be compensated like-for-like for that segment of the trip. However, if the passenger isn’t able to connect to the train after a flight or flight after a train which had been cancelled, the whole fare might qualify for compensation. When looking at how to insure against flight cancellation, travel insurance is actually the safest option and the most inclusive.


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Cost of Flight Cancellation Insurance

Whilst it would seem like SAFI is the cheapest option because it is possible to get 30 day cover for much less than £10, bear in mind that this type of insurance only covers flights grounded due to financial failure of the airlines. On the other hand, travel insurance that covers flights cancelled due to such things as weather, terrorism, hijackings and mechanical failure of the aircraft costs a bit more but has much better cover.

Many travellers find that purchasing a travel insurance policy offers wider protection because some of them provide flight cancellation on the traveller’s side as well. Some policies offer protection against cancellations due to illness or death of the insured. There are also travel packages which have medical cover in addition to flight cancellation insurance and some policies also offer repatriation in the event that terrorism or acts of war cause flights to be cancelled.

When all these facts are considered, most consumers find that travel insurance is the best way to protect against loss because it covers so much more than the financial failure of an airline. The cost is not very much more than a SAFI policy and there are many insurance companies which sell travel insurance but few sell standalone flight cancellation insurance. The choice is always yours, but isn’t it better to have broader cover for a few extra pounds? Most people agree this is the best option.


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