You're about to purchase a flight, and the website asks, “Would you like to upgrade to a refundable ticket for an additional fee?” It seems like a good idea if you need to cancel your flight, but is it the best option for you?
What Is a Refundable Airline Ticket?
Refundable flight tickets from an airline provide partial or full reimbursement if you decide to cancel your ticket. They might also make it easier or less expensive to change your flight, for example, if you find out you need to fly on a Thursday instead of Friday.
While refundable airline tickets have their advantages, they might not be the best choice for everyone. Here are some other things to consider when you're comparing refundable vs. nonrefundable airline tickets.
- Refundable airline tickets are more expensive than standard, nonrefundable ones. It’s up to you to determine if you can afford the extra expense and if it’s worth it to you to spend more money.
- Depending on the airline and the situation, a refundable airline ticket does not necessarily guarantee a full cash refund. Some issue only partial refunds.
- Some airlines charge a fee to cancel or change flights, even with a refundable ticket. The fee will be smaller than forfeiting the full cost of a flight, but it’s still a good charge to be aware of.
- Refundable airline tickets can provide additional flexibility if you think your travel plans may change. Some travelers find this incredibly helpful while others don’t see a need (like when absolutely nothing could stop you from flying for a family member’s wedding).
Each airline has its own policy when it comes to refundable tickets. These policies outline how close to the flight you can cancel and still get reimbursed, whether there are fees to process the reimbursement, and any other restrictions. Be sure you understand your airline’s refund policy before flying.
What Is the Difference Between a Refundable Airline Ticket and Travel Insurance?
Travel insurance covers more, and can therefore provide reimbursement for more, of your trip expenses than a refundable airline ticket. When you pay more for the fully refundable flight, the airline covers the cost of your ticket only. With travel insurance, you can also protect things like hotels, cruises, excursions, and more.
When you’re buying your airline ticket online, many airlines try to grab you with a sense of urgency. “Your ticket can be held for 15 minutes,” accompanied by a ticking timer off to the side.
Sometimes they tempt you with convenience. “You’re just one click away from protecting your flight.”
Rushing to a decision without knowing the facts of what you’re getting from the airline and how that compares to coverage you could get travel insurance could lead to a case of buyer’s remorse.
Are Refundable Airline Tickets or Travel Insurance Better?
Refundable airline tickets and travel insurance provide two very different kinds of financial protection. Here are some factors to consider when deciding which is the better fit for you.
1. Breadth of coverage
The refundable ticket you purchase from the airline typically provides reimbursement for the ticket itself, and that’s it. Travel insurance through a provider like Seven Corners also protects you if you must cancel your trip for certain, covered reasons, and that protection may cover more than just a flight.
For example, if your flight is cancelled and you can’t catch another flight until the next day, you could potentially lose money on a prepaid, nonrefundable vacation rental or excursion at your destination. Similarly, if your flight is delayed, causing you to miss your cruise’s departure, the airline ticket won’t do anything to help you recover.
While your airline’s refundable ticket typically wouldn’t cover those other prepaid, nonrefundable trip expenses, travel insurance could.
2. Flexibility to change travel plans
Most airlines will let you cancel your flight for any reason as long as you have purchased a refundable ticket.
Most trip insurance covers you for trip cancellation with a list of covered reasons, such as a sickness that keeps you from traveling or inclement weather that causes the airline to shut down for at least 48 hours.
Trip Protection plans also offer optional Cancel for Any Reason (CFAR)* coverage, which can give you more flexibility to change your travel plans. This add-on benefit reimburses you for up to 75% of your nonrefundable trip cost — including the cost of flights as well as hotels, tours, and so on — if you need to cancel your trip, no matter what the reason is.
At a time with so much unpredictability, many travelers find CFAR provides them with extra flexibility and confidence when planning their trips. They know that with CFAR, they won’t lose all of their prepaid, nonrefundable investment if they need to cancel unexpectedly for reasons such as fear of travel or simply changing their mind about taking their trip, two reasons that most likely would not otherwise be covered.
3. Customizable options
Seven Corners offers a variety of plans to help find your best match, often with the ability to customize your plan.
With our plans, you can also look for optional add-ons to give you more robust coverage based on your needs. You might choose to add the Optional Rental Car Damage benefit to a Trip Protection plan. If you select our Trip Protection USA plan, you can design your own plan by adding bundles for air travel, medical expense coverage, and more.
On the other hand, refundable airline tickets are what they are, with no options to adjust the terms in a way that supports you most.
4. Coverage for medical emergencies, illness, or injury
Travel insurance can provide emergency medical expense coverage if you get sick or injured during your trip. This can be particularly important when traveling internationally as your domestic health insurance does not typically cover you overseas.
Many travel insurance plans also offer coverage for pre-existing conditions, emergency medical evacuations, and other benefits not found with a refundable airline ticket.
5. Personal service
We love our friends in the airline industry. We even turned to them for some of our best tips about flying with kids. But while airlines are great at getting you from Point A to Point B, a company like Seven Corners that specializes in travel insurance is going to be better at helping you figure out how to protect your money.
We understand that every traveler and every trip is unique, and that sometimes the decision on what kind of coverage you need isn’t the most obvious. That’s why we employ a sales team that is made up entirely of licensed agents, ready to answer all your questions.
Our commitment to personal service is also why all Seven Corners plans come with 24/7 emergency travel assistance services. If you need help finding medical care during your trip or need translation services while abroad, Seven Corners Assist is there to help.
Our personal service guarantee is with you from the moment you start talking with one of our licensed agents all the way until you return home.
Should You Buy Travel Insurance from an Airline?
Most airlines offer travel insurance during the checkout process. They make it sound super simple, and in some ways, it is. But it’s also more difficult to understand what’s included in your travel insurance that way.
Before you give anyone your hard-earned money, make sure you understand what you’re getting in exchange. Our guide to buying travel insurance from an airline can help.
Is Travel Insurance for Flights Worth It?
There are advantages to buying a refundable ticket vs. purchasing flight insurance from a travel insurance provider. For example, if you’re staying with family and don’t have expenses for a hotel or rental car, you might not have much in the way of trip costs. If the only thing you need to protect is your flight, a refundable ticket that provides 100% reimbursement when you meet the airline’s policy requirements could be a good choice.
However, if you need protection for more of your trip than just the airline ticket, travel insurance is likely a better option. And remember that it doesn’t have to be an all-or-nothing purchase, either.
As much as we’d love to protect all of your travel arrangements, you could opt to purchase from both Seven Corners and your airline. One of our own employees did just that for an Alaska vacation. The airline’s refundable ticket made more sense for her needs, but she also purchased trip protection for other aspects of her trip like her hotels, excursions, and a train ride.
It’s best to expect the unexpected, and when we travel, that means expecting that some of your best-laid plans might not work out. An airport’s systems could glitch, causing a stream of delays and cancellations. The airline could overbook its flights, causing a domino effect of disruptions.
None of that is in your control. But if you’re worried about these disruptions and how they’ll impact your money, carefully consider how to best protect your trip and the money you spent on it.
Find the right plan for you and your budget at SevenCorners.com. Our team of licensed agents are also ready to answer any questions and help you make the best decision for you.
*Terms, conditions and limitations apply to all benefits mentioned above. Any Optional benefit, such as CFAR, comes at an additional cost. CFAR is not available to residents of NY. Please see your plan document for full details.
