Flight insurance and per-trip add-ons: mostly theatre
Standalone flight/accident insurance is a classic low-value, high-emotion product. Trip cancellation can be worth it — check what you already have.
The verdict
Flight insurance sells peace of mind at a steep markup. A fatal commercial-aviation accident is extraordinarily rare, so the expected value of an accident policy is tiny — you're paying a lot to insure something that almost never happens. Run the expected-value math with the calculator below and it collapses.
Separate the three things being sold
| What's bundled | What it does | Verdict |
|---|---|---|
| Flight-accident AD&D | Pays if you die/are maimed in a plane crash | Skip — negligible odds, tiny expected value |
| Trip cancellation / interruption | Refunds non-refundable costs if you cancel for a covered reason | Sometimes worth it — check what you have |
| Travel medical | Pays for emergency care abroad | The one that matters — buy it properly |
The kiosk blurs these together so the useful bits lend credibility to the useless one.
You're probably already covered — partly
A decent travel rewards credit card often includes some trip cancellation/interruption and even limited travel medical — but with activation rules, age limits, and low caps. Read the benefit guide before assuming you're protected, and don't rely on a card's thin medical coverage for a serious emergency.
What actually deserves your money
- Travel medical — the real financial risk abroad. Provincial plans pay almost nothing outside Canada, and a hospital stay can cost tens of thousands. See travel medical insurance.
- Trip cancellation — worth it for expensive, non-refundable trips (a cruise, a booked tour), especially if a pre-existing health issue could force a cancellation.
Do this instead
- Skip the airport-kiosk flight/accident insurance.
- Check your credit card's travel coverage and its limits.
- Buy travel medical for every out-of-country trip.
- Add trip cancellation only when the non-refundable amount is large.
Run the expected-value math
Defaults are educational assumptions (or sourced industry framing) — change every field. EV = P(claim) × E[payout] − annual premium.
-$35
Negative = you pay more than you get back in expectation
12.5%
E[payout] $5 / premium
Illustrative industry loss-ratio framing: 15.0% (content constant — not your personal odds).
Robert noticed…
- Every parameter is editable. Defaults on teardown pages are sourced or marked ASSUMPTION in content — never treat them as personal odds.
- Implied expected recovery is under 40% of premium — common for add-on products with low claim rates and high loading.
Frequently asked questions
- Is flight insurance worth it?
The flight-accident portion isn't — the odds are minuscule and the expected value is tiny. What's worth buying is travel medical, and sometimes trip cancellation for expensive trips.
- Does my credit card cover trip cancellation?
Many travel cards include some cancellation/interruption coverage, but with activation requirements, age limits, and caps. Check the benefit guide and don't assume it's comprehensive.
- Do I need travel insurance if I have a good credit card?
Usually still yes for medical — card medical coverage is often limited or age-restricted. Card benefits can supplement, but a proper travel medical policy is the safe choice for emergencies abroad.
- What's the difference between flight insurance and travel insurance?
Flight insurance narrowly covers a flight accident. Travel insurance covers the risks you actually face — emergency medical care abroad and trip cancellation/interruption.
- When is trip cancellation worth buying?
When you've prepaid a large, non-refundable amount, or when a pre-existing condition could force you to cancel. For cheap or refundable trips, it's usually unnecessary.
Sources
Educational only — not financial advice. Run your own numbers with the calculator below.
Educational only — not insurance advice, and no products are sold here. Robert is a mascot, not a licensed advisor. See our disclaimer.