When your flight is canceled: A complete guide to your rights and insurance coverage

A canceled flight, whether by the airline or the traveler, can disrupt travel plans and impact finances. In the past year, as we all know, flight cancellations to and from Ben Gurion Airport have soared due to the security situation. Particularly under such circumstances, it’s essential to understand your rights and the types of insurance coverage available to help you in these situations. This article reviews the differences between airline-initiated cancellations and traveler-initiated cancellations and explains how and when flight insurance with a cancellation/shortening clause can provide you with appropriate compensation.

What Happens When the Airline Cancels the Flight?

If an airline cancels a flight, Israeli law (and, in many cases, international aviation regulations) mandates that the airline compensates passengers in accordance with passenger rights laws. Compensation includes a full refund for the ticket or an option for an alternative flight. Additionally, the airline must provide services such as food, lodging, and transportation, depending on the flight distance and the time remaining until the replacement flight.

In such cases, flight insurance does not cover additional cancellation costs, as the responsibility for compensation lies with the airline. Therefore, if the flight is canceled by the airline, there’s no need to contact your insurance provider.

What Happens When the Traveler Cancels the Flight?

If the traveler chooses to cancel or shorten their flight, other types of protection are needed—and here, travel insurance plays a role. There are two main types of insurance for covering flight cancellations initiated by the traveler:

1. Basic Flight Cancellation Insurance: This insurance is included in most travel insurance policies and covers flight cancellations for specific reasons, such as:

• Sudden illness
• Hospitalization
• Accident
• Death of an immediate family member
• Receiving an emergency military reserve duty call-up

In such cases, the traveler may receive a full or partial refund for the ticket, depending on the policy terms. However, if the traveler cancels the flight for personal reasons, basic insurance will not cover the cancellation.

2. Cancel-for-Any-Reason Insurance: Known as “Trip Guarantee,” this broader insurance allows travelers to cancel their flight for any reason—whether due to a change in personal plans, a decision not to continue the trip, or even discomfort. This coverage provides a refund, but it’s important to note:

• The refund is usually limited to approximately 75%-80% of the total ticket cost.
• The cancellation must be made within a specified time before departure (typically 48-72 hours).

This insurance gives travelers much more flexibility in the event of unexpected plan changes, but it’s generally more expensive than basic insurance.

What Should You Know About Flight Cancellation Insurance?

When comparing travel insurance options, it’s important to understand that choosing between basic and comprehensive flight insurance depends on the flexibility you need. If you’re planning a flight with little likelihood of cancellation, basic insurance—covering emergency-related cancellations—may be sufficient. If, like many reservists in these times, you’re concerned about a potential military call-up, rest assured that purchasing such insurance in advance covers this scenario.

On the other hand, if you foresee a reasonable chance of needing to cancel your flight for any reason—whether due to the security situation or changes in plans—considering a Cancel-for-Any-Reason policy may provide peace of mind. These policies are available for all travelers, whether it’s a single flight, a family vacation, or a longer journey. Just make sure the insurance suits your personal needs.

How to Choose the Right Insurance?

Beyond deciding whether to include the comprehensive cancellation option, it’s essential to review other aspects of the policy you intend to purchase, as choosing the right insurance is crucial to ensuring full coverage. Here are some tips to help you choose:

• Compare Travel Insurance Prices: Look for the most affordable and valuable policies based on your requirements. Price comparisons across companies can save you a significant amount.
• Understand the Insurance Terms: Pay attention to the fine print—what are the exact refund conditions? How much of the cost will be refunded? And within what timeframe must the cancellation be made to receive a refund?
• Choose Insurance That Fits Your Trip: Select coverage that matches the nature of your trip. If it’s a long trip, you may need broader coverage, including extreme sports or rental car insurance.

Don’t Take Risks—Compare Policies on Bestie and Find the Most Affordable and Protective Option

To find the policy that covers you comprehensively and affordably for flight cancellations, we recommend using Bestie, Israel’s leading insurance comparison platform. Bestie allows you to compare various travel insurance policies and get tailored quotes that match your travel plans. With Bestie’s smart engine, you can get multiple flight insurance options with just a few clicks, comparing not only prices but also terms, including coverage and conditions for cancellations. So why wait? Visit Bestie now, compare, and find the most cost-effective policy for you.

In collaboration with bestie