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!

This website contains highlights of the plans developed by Travel Insured International, which include travel insurance coverages underwritten by United States Fire Insurance Company, Principal Office located in Morristown, New Jersey, under form series T7000 et al, T210 et al and TP-401 et al, and non-insurance Travel Assistance Services provided by C&F Services and for WTP Cruise only, AwayCare and Blue Ribbon Bags. The terms of insurance coverages in the plans may vary by jurisdiction and not all insurance coverages are available in all jurisdictions. Insurance coverages in these plans are subject to terms, limitations and exclusions including an exclusion for pre-existing medical conditions. In most states, your travel retailer is not a licensed insurance producer/agent, and is not qualified or authorized to answer technical questions about the terms, benefits, exclusions and conditions of the insurance offered or to evaluate the adequacy of your existing insurance coverage. Your travel retailer may be compensated for the purchase of a plan and may provide general information about the plans offered, including a description of the coverage and price. The purchase of travel insurance is not required in order to purchase any other product or service from your travel retailer. CA DOI toll free number is 800-927-4357. The cost of your plan is for the entire plan, which consists of both insurance and non-insurance components. Individuals looking to obtain additional information regarding the features and pricing of each travel plan component, please contact Travel Insured International. P.O. Box 6503, Glastonbury, CT 06033; 855-752-8303; [email protected]; California license #0I13223. While Travel Insured International markets the travel insurance in these plans on behalf of USF, non-insurance components of the plans were added to the plans by Travel Insured and Travel Insured does not receive compensation from USF for providing the non-insurance components of the plans.