What Does Travel Delay Insurance Cover?

Travel insurance benefits for a trip delay generally kick in for a covered reason after a specified length of time, which varies by insurance plan. For example, your plan might start providing benefits after a 10 or 12-hour delay.

In addition, the cause of the delay must be specified as a covered reason in the policy.

Common causes include mechanical failure and inclement weather, but they could also include traffic accidents en route to your departure, lost or stolen passports or natural disasters. Read the fine print of your policy carefully to know what is and isn’t covered.

Trip delay coverage will have a per day and a total maximum benefit limit per person. The best travel insurance plans require only a few hours of delay and have a high reimbursement level per person.

If you are delayed for a reason covered by your policy, you can be eligible for reimbursement of reasonable expenses—up to the coverage limit specified in the policy. These expenses could be for meals, hotel accommodations and transportation.

It can be easy to confuse “trip delay” and “trip interruption” coverage. The difference is that trip interruption pays for the portion of your trip that you weren’t able to use because you had to cut the trip short. Trip interruption coverage could cover the cost of return transportation if you need to end the trip early, for example.

Trip delay, on the other hand, is for cases when you’re stuck in transit or experience a temporary setback. It covers what you need—such as accommodation and meals—to tide you over until your trip gets back on track.

Some travel insurance companies, like Allianz Global Assistance, have user-friendly mobile apps that help when filing claims. You’ll need to have some information handy like your policy number and specifics about your travel delay circumstances.

You’ll also need to submit your receipts to make a claim.

If your insurer doesn’t have an app, or if you aren’t tech-savvy, you can log on to the company’s website and file a claim. You can also call the customer service number on your policy or wallet card for additional assistance.

While no one wants to face a few extra hours in an airport terminal, or an unplanned hotel stay, preparing for this possibility can make a delay easier to manage.

Anticipate What You’ll Need During a Delay

Pack for a single night’s stay in your carry-on luggage, just in case. This includes any prescription medication or items that would be hard to replace. Savvy travellers also prepare a document ahead of time with a list of contacts at your destination in the case you need to get in touch with tour operators, hotels or transportation companies to let them know about your delay.

Embrace Technology

If your insurance provider uses an app for communicating with policy holders, be sure you download it before you leave on your trip.

For example, Allianz Global Assistance offers the TripWise app as a convenient way to access your travel insurance plan, file and manage a claim, track flights and receive live updates for flight delays.

Luggage trackers, such as the Apple AirTag, help you know where your luggage is at all times.

Have Access to Emergency Funds

Since you generally need to pay any expenses out of pocket before getting reimbursed, it’s important to plan accordingly. Be sure to have enough funds available to cover the cost of a hotel stay or meals for the duration of the delay. Be sure to keep all receipts as you’ll need these when it comes time to make a claim.

Know the Caps for Reimbursement

Travel delay benefits generally have a per day maximum and also a total maximum, per person. For example, CAA Travel Insurance covers up to $500 after a 10-hour delay while TD Insurance covers up to $400 after a 12-hour delay. Keep the caps in mind before you book that five-star hotel or order an extravagant meal. You could still treat yourself, but be prepared to pay the amount out of pocket that’s above your insurance limit.

The Canadian Transportation Agency (CTA) provides a comprehensive guide that outlines passenger rights and airline obligations if there is a flight delay or cancellation.

For example, airlines must provide regular flight status updates every 30 minutes until a new departure time or flight arrangement has been confirmed, as well free food and drink, and overnight accommodation, if necessary.

Airlines are also required to pay compensation for inconvenience to a maximum of $1,000. The amount of compensation depends on how late the passenger arrives at their destination, compared to the arrival time indicated on their original ticket.

Large airlines must pay:

• $400 if the passenger arrives three or more hours late, but less than six hours
• $700 if the passenger arrives six or more hours late, but less than nine hours
• $1,000 if the passenger arrives nine or more hours late

Small airlines must pay:

• $125 if the passenger arrives three or more hours late, but less than six hours
• $250 if the passenger arrives six or more hours late, but less than nine hours
• $500 if the passenger arrives nine or more hours late