What is Flight Insurance?

Flight insurance is a type of travel insurance that helps you cover the expenses resulting from either an airplane accident or flight cancellation. Many flight insurance policies provide both types of coverage at once. Depending on your existing policies, these expenses may already be covered by a combination of your health insurance, property insurance and medical insurance.  Before you decide whether or not you should buy flight insurance, you should look at your existing policies and see what they offer and how much coverage they provide. If nothing else, flight insurance may help you cover expenses that you would otherwise have to deal with on your own.

Understanding Flight Insurance

Flight insurance is either sold separately or included as part of travel insurance. Depending on your needs, flight insurance may offer more coverage than your travel insurance, although it's just as likely that travel insurance would cover all your needs for less than what it would cost you to buy a separate flight insurance policy. That said, most flight insurance policies  usually have relatively inexpensive rates (often about $25 for $250,000 or $500,000 of insurance).

Flight Insurance and Airplane Accidents

This is the most common form of flight insurance coverage. This includes coverage of the accidents that took place at take-off, during the landing or at any other point during the flight. As a rule of thumb, most flight insurance policies will cover you in the event of your death or dismemberment. If you die in the accident, they will pay for the transportation of your body (assuming there is anything that can be identified as such) and give your beneficiaries a lump sum of money which they can use to cover funeral expenses and any other expenses that result from your death. If you suffer dismemberment, they will help you cover your medical bills. Different flight insurance providers have different definitions of "dismembered," but it usually includes loss of at least two limbs and/or loss of both of your eyes.

In addition to coverage provided above, some insurance policies may cover the costs related to your damaged luggage. They may also cover medical expenses resulting from injury, illness or other medical issue suffered during an accident. Usually, though, the insurance providers will not cover you unless you can provide iron-clad proof that above-mentioned medical issues could be traced directly to the accident.

Flight Insurance and Flight Cancellation

Flight insurance covers expenses resulting from cancellation of a flight, be it an incoming flight or a returned flight. Depending on the policy, you also be covered if you cancelled the flight because you, your traveling companion or your immediate family member (or any combination thereof) becomes ill, suffers an injury or dies. You may also be covered in the following situations:

  • Legally required to stay  - this includes being quarantined, required to serve on a jury, or getting subpoenaed.
  • Your home is made inhabitable - this includes severe damage caused by fire, flood, volcano, earthquake, hurricane, or other natural disaster.
  • Traffic accidents - if you can prove that you were involved in a traffic accident on the way to the airport, you may be covered.

Flight Insurance will usually reimburse the costs of the tickets. Some policies also pay cost of the hotel stay and transportation costs.

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