Why you still need travel insurance, even with the new refund rules

As exciting as traveling can be, it can also come with unexpected challenges. That's why you should have travel insurance that can protect you from unforeseen events and expenses.

According to the DOT's new rule, airlines must now provide prompt, automatic refunds to passengers whenever:

• A flight is canceled, and the passenger is not offered or rejects alternative transportation or travel credits, vouchers, or other compensation.
• Significant changes to a flight occur, including departure or arrival time shifts by more than three hours for domestic flights and six hours for international flights; departures or arrivals from a different airport; the flight has more layovers than the original itinerary; or any change that affects the accessibility needs of a passenger with a disability.
• A passenger pays for an extra service, like checked baggage, seat selection, or Wi-Fi, that is not provided by the airline.
• A passenger who files a mishandled baggage report sees significant delays in baggage return. The individual is entitled to a refund of their checked bag fee if it is not delivered within 12 hours of their domestic flight arriving at the gate, or roughly 15 to 30 hours of their international flight arriving at the gate.

Additionally, the rule says that refunds from airlines must be the full amount, including government taxes and extra airline fees. The payment should also be in cash or the original form of payment, unless the passenger chooses to be compensated with vouchers, travel credits or another form of compensation. This applies to all scheduled flights to, from, or within the United States, regardless of the size of the aircraft or the location of the airline or the passenger.

While the new refund rule is a step in the right direction for consumers, it does not cover all the possible scenarios and costs that travelers may face.

Travel insurance offers additional protections that go beyond the refund rule, such as coverage for:

• Trip cancellations or changes due to natural disasters, hijacking, accidents en route, sickness or injury of the passenger or a family member, or other causes outside of the passenger’s control.
• Medical expenses, repatriation, and evacuation if the passenger becomes ill or injured during the trip, especially in foreign countries.
• Personal belongings that become lost, stolen, or damaged during the trip.
• Travel delay expenses due to airline flight overbooking, strike, adverse weather, hijacking, quarantine, mechanical breakdown, or other causes.
• Legal advice, interpreters, emergency cash, lost documents, and other assistance services during the trip.
• Repatriation of remains in case of death during the trip.

Travel insurance can also provide travel credits or vouchers that are transferrable and valid for at least five years if the passenger cannot travel due to a serious disease, such as COVID-19.

Before you book your next flight, make sure you compare and choose a travel insurance plan that suits your needs and budget. You can find more information about travel insurance options and benefits at Travel Insurance - Protect yourself | Popular Insurance.