Press Releases

Government Studies on Cost and Frequency of Flight Delays

by John Stone | Nov 18, 2010
A new research study, funded by the FAA, puts the annual economic impact of flight delays at $16.7 billion in losses to passengers. DOT reported September flight cancellations were up 50% from one year ago.

East Hartford, CT (Vocus/PRWEB) November 19, 2010- Travel Insured International says two recent government reports serve as a cautionary reminder to travelers about the value of travel insurance. A new economic study released by the Federal Aviation Administration in October documented the hefty cost to passengers of flight delays. Additionally, Department of Transportation statistics showed a sharp rise in September 2010 flight cancellations as airlines complied with the three-hour tarmac delay penalty rule. The numbers support the need for travel insurance, including Trip Delay coverage, when traveling this holiday season to a family gathering or a getaway vacation destination.

The FAA study, conducted by research professors from the University of California Berkeley and M.I.T., was announced last month as a detailed look at 2007 flight delay costs, the latest year for which full statistics are available. The report said trip delay-related costs, a $33 billion yearly hit to the overall economy, includes $16.7 billion in extra costs paid by passengers. The Associated Press noted that "researchers looked more broadly at costs associated with flight delays, including passengers' lost time waiting for flights and then scrambling to make other arrangements when flights are canceled."

The DOT separately reported a marked September 2010 increase in flight cancellations as airlines complied with the May 2010 Tarmac Delay rule that fines carriers $27,000 per passenger if they hold passengers on a grounded plane three hours or more. The DOT reported airlines canceled 0.9 percent of their September 2010 flights, compared to 0.6 percent cancelled in September 2009. The number of cancelled flights for September was 4,754, compared to 2,934 flights in September 2009, or an additional 66 flights canceled each day, according to the "Airline Biz Blog" published by the Dallas Morning News.

Coverage Against Flight Delays

The solution for holiday travelers facing potential delays from flight cancellations or weather-related delays is to include travel insurance with Trip Delay coverage on their planning list. Travel Insured includes Trip Delay in all four plans under its Worldwide Trip Protector brand, as well as in its Airline Ticket Protector policy. Missed Connection is included in all plans except Trip Protector Lite. Coverage includes:

  •  Trip Delay for a minimum delay of either 6 or 12 consecutive hours, depending upon the selected plan, due to a common carrier delay, including for weather. Coverage reimburses unused, prepaid land or sea costs, and meals and accommodations up to $100 or $200 per insured per day, as specified in the selected plan.
  •  Missed Connection coverage included in most plans when a minimum delay of three or six hours, depending upon the selected plan, results in a missed cruise or tour departure. Reimbursement of up to $200, $500 or $750 per insured, depending upon the selected plan, covers transportation, hotel and meal expenses to rejoin the departed trip.
  •  If an airline or other supplier cancels your trip, you are covered on Worldwide Trip Protector, Trip Protector Gold and the Airline Ticket Protector plans up to the cost of your ticket or reissue fee when you need to book alternative dates, as long as you have insured the full prepaid cost of your trip, including airfare. The same coverage is included with a limit of $200 on the Trip Protector Lite Expanded plan.

Why become a holiday trip delay statistic? Travelers can protect themselves against unplanned expenses caused by airline delays with the right insurance plan. When looking to save money on insurance, travelers can even eliminate Trip Cancellation coverage to reduce their premium with $0 Trip Cost coverage, also known as post-departure insurance. Trip Delay and Missed Connection coverage, starting at 12:01 a.m. on the scheduled departure date, are still included!

Coverage is offered by Travel Insured International, California lic. no.0I13223, 855 Winding Brook Drive, Glastonbury, CT 06033. The plans contain insurance benefits underwritten by the United States Fire Insurance Company, 305 Madison Ave, Morristown, NJ 07960. C&F and Crum & Forster are registered trademarks of United States Fire Insurance Company. United states Fire Insurance Company is currently authorized to transact business in all states and the District of Columbia. NAIC No. 21113. The Crum & Forster group of companies is rated A (Excellent) by AM Best Company 2016. The plans also contain non-insurance Travel Assistance Services that are provided by an independent organization, and not by United States Fire Insurance Company or Travel Insured International. Coverages may vary and not all coverage is available in all jurisdictions. Your travel retailer may not be licensed to sell insurance, and cannot answer technical questions about the benefits, exclusions, and conditions of our plans.