Travelers hoping for stronger protections when flights go awry will have to wait—possibly indefinitely. The Trump administration has scrapped a Biden-era plan that would have required airlines to provide cash compensation for significant delays, leaving passengers once again dependent on carriers’ existing (and often limited) policies.
For travel advisors, this rollback is more than just a headline; it’s a reminder of why comprehensive travel insurance is essential to any itinerary. Without government-mandated refunds, travelers risk paying out of pocket for disruptions that can ripple far beyond the flight itself.
According to InsureMyTrip, the shift underscores how much more robust travel insurance can be compared to airline reimbursement alone.
“With the rollback of these consumer protections, travelers can no longer depend on the government to guarantee compensation for delays,” InsureMyTrip CEO Suzanne Morrow said in a statement. “That makes travel insurance the most reliable way to protect your investment—from flights to hotels, emergency medical coverage, and many things in between.”
Why Insurance Fills the Gap
While U.S. airlines may refund tickets for canceled flights, the majority of trip costs—accommodations, tours, and ground transportation—are left vulnerable. These often account for 60 to 80 percent of a trip’s value. Comprehensive insurance can reimburse those expenses, alongside offering:
- Travel delay coverage for meals, hotels, and incidental costs during extended disruptions.
- Trip cancellation and interruption protection for scenarios ranging from illness to natural disasters.
- Medical coverage abroad, including emergency evacuation—benefits never covered by DOT rules.
- Enhanced baggage protection beyond airline liability caps.
- Optional Cancel For Any Reason (CFAR) coverage, which allows partial reimbursement even when canceling for reasons outside traditional policy triggers.
What It Means for Advisors
For advisors, the policy rollback offers a dual challenge: managing client expectations around what airlines will actually cover, and making the case that travel insurance is no longer a “nice to have,” but a critical safeguard.
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