The U.S. Department of Transportation (DOT) just announced a new rule that’s a real game-changer for airline passengers: Airlines must now provide automatic cash refunds when flights are canceled, significantly changed, or when checked baggage doesn’t arrive on time.
When flights are canceled or significantly changed, airlines are now required to refund passengers in cash or their original payment method. Previously, passengers were often forced to navigate complex policies or were given vouchers or travel credit instead of cash. Now, refunds must be paid in cash (or original payment method) within 7 days if you used a credit card, and within 20 days for other payment types. This eliminates a lot of the waiting and wondering for travelers.
While this is welcome news for air travelers, there’s more to consider—because, as helpful as this rule is, it only applies to specific airline situations. This is where travel insurance steps in to offer more complete protection for the unexpected.
When Are You Eligible for a Refund?
This rule addresses not only just the canceled flights but a few other situations where you’re eligible for an automatic refund:
- Canceled or Majorly Changed Flights: If your flight is canceled or if there’s a significant schedule change (more than three hours for domestic and six hours for international flights), you qualify for a cash refund. If you purchased your flight with your credit card, refunds must be sent within 7 days to your original card. If you purchased your flight through any other means, you will get a refund within 20 days.
- Delayed Checked Baggage: For domestic flights, if your checked bag doesn’t arrive within 12 hours of your flight landing, you’re entitled to a refund for the baggage fee. For international flights, the timeframe is 15 hours.
- Paid Services That Are Not Provided: If an airline fails to provide a service you paid for, like Wi-Fi or a premium seat, you’ll get a refund for that specific service.
This new rule is designed to give travelers a fair, efficient way to get their money back when things go wrong, covering many situations that were previously handled on a case-by-case basis.
Why You Still Need Travel Insurance
While the new rule offers essential protections for airline-related issues, it doesn’t cover everything that can go wrong during travel.
Air travel is just one part of a journey, and disruptions often affect more than just flights. Many potential disruptions, such as hotel cancellations or medical emergencies, fall outside the DOT’s jurisdiction. Travel insurance–namely, trip insurance–bridges this gap, offering a wider range of protections for a fraction of your trip’s cost.
How Travel Insurance Bridges the Gaps
Trip insurance picks up where the airline refund rule leaves off, protecting you against issues that can’t be covered by a ticket refund alone. Here are a few of the benefits that trip insurance can get you:
- Trip Cancellation: If you have to cancel or cut your trip short due to illness, an emergency, or even severe weather, there are Cancel For Any Reason plans that can cover many prepaid, non-refundable costs, including flights, hotels, and more.
- Trip Interruption and Delay: If there are factors other than your flight being canceled or delayed that cause interruptions or delays to your trip, such as missed flight connections and severe weather, many trip insurance policies can cover the incurred cost.
- Baggage Protection: While the new rule does cover lost checked in baggage, there are many crucial scenarios it doesn’t touch upon. If your luggage is lost, damaged, or delayed, trip insurance offers a layer of protection beyond what the airline provides, helping cover essential items while you wait.
- Medical Emergencies and Evacuation: This is one of the biggest pluses of getting travel insurance–especially if you are a US citizen traveling abroad. Should you have a medical emergency, trip insurance policies can provide essential coverage for emergency medical care and evacuations.
With travel insurance, you’re covered for a broad range of unexpected disruptions, from minor inconveniences to major events. It provides peace of mind, knowing that if something goes wrong, you won’t be left handling all the costs on your own.
How DOT Refund Rules and Travel Insurance Work Together for a Stress-Free Journey
The DOT’s new refund rule is a welcome shift for travelers, eliminating the stress that often came with securing a refund after unexpected airline disruptions. By making refunds automatic in certain cases, this rule brings peace of mind and much-needed fairness to air travel. But for a truly protected journey, travel insurance is an essential addition, covering a wider range of scenarios like trip cancellations, medical needs, non-airline disruptions, and more.
For a well-rounded approach to travel security, compare and contrast trip insurance options available to you with VisitorsCoverage. With the added peace of mind that travel insurance offers, you’ll be prepared for any challenges that come your way, wherever your journey takes you.
