Why travel insurance is no longer a boring formality: delays, strikes and lost reservations are increasingly affecting ordinary travelers
Travel insurance was long perceived as an incidental item when buying an airline ticket, hotel accommodation or a package holiday. Many chose it automatically, without reading the terms, or did not take it out at all because they started from the assumption that serious problems happen rarely and mostly to others. Such an approach is increasingly risky. Travel has become logistically more complex, airports busier, connections more frequent, and reservations are increasingly assembled from several separate parts: one ticket with one carrier, another with a different one, accommodation through a platform, a rent-a-car from a local provider and excursions paid in advance through a third service. When one part of such a chain fails, the traveler often only then discovers that he did not buy what he thought he had bought.
That is precisely why travel insurance is no longer just an administrative formality but a practical tool for risk management. It does not remove inconveniences, does not guarantee that a flight will depart on time and cannot replace passengers' legal rights. But it can be decisive when costs arise that an airline, hotel, rent-a-car company or excursion organizer does not recognize. The difference between a useful policy and expensive but weakly applicable protection most often lies in the terms: what exactly is covered, what the exclusions are, what the limits are, when a carrier confirmation is required, what is considered a justified reason for cancellation and whether coverage applies if the services were purchased separately.
Traffic disruptions have become part of the everyday picture of travel
Air traffic has returned to strong growth after the pandemic decline, and international industry estimates indicate that demand for flying will continue to increase in 2026. A larger number of passengers also means greater pressure on airports, crews, air traffic control, ground services and luggage. In such a system, even a minor disruption can spread quickly: bad weather closes one major hub, a strike slows boarding or security checks, an aircraft is late arriving so the crew can no longer operate the next flight, and a traveler with a connection is left without the continuation of his journey. The problem is often not only a delay of several hours, but a domino effect that ruins accommodation, vehicle rental, a paid transfer or a pre-purchased excursion.
European rules give passengers a range of rights in the event of denied boarding, flight cancellation and long delays. In certain circumstances, a passenger may have the right to care, rerouting, a refund or monetary compensation, and the air carrier must inform passengers about their rights. However, these rights are not the same as travel insurance. Legal rights primarily regulate the relationship with the carrier, while an insurance policy may cover additional costs incurred due to travel disruption, depending on the contracted package. This is especially important with hotel nights that are lost due to late arrival, tickets for events, reserved tours, additional transport to the destination or the purchase of basic necessities while luggage is delayed.
The most common mistake travelers make is the belief that “someone” will automatically compensate all consequences of a disruption. In practice, responsibility is often divided among several parties, and each refers to its own rules. An airline may recognize only what follows from regulations and conditions of carriage. A hotel may charge for the night because the deadline for free cancellation has passed. A rent-a-car company may cancel the reservation if the vehicle is not picked up by a certain hour. An excursion organizer may refuse a refund because the place was reserved and paid for.
What is usually covered, and what is often wrongly assumed
Travel insurance policies differ in scope, but most often include a combination of medical coverage abroad, travel assistance, compensation for delayed luggage, loss or theft of personal belongings, cancellation or interruption of travel, departure delay and liability toward third parties. More expensive policies may include higher limits, a larger number of cancellation reasons, protection in the case of a missed onward journey, excess coverage for vehicle rental, sports activities or additional assistance services. The key word in all of this is “may”. None of the above should be considered automatic until the information document and the full policy terms have been read.
When cancelling a trip, it is especially important to distinguish a subjective decision from an insured reason. A traveler may conclude that he no longer wants to travel because the circumstances are unpleasant, but insurance most often pays compensation only if the reason is listed in the terms. These may include illness, injury, death in the family, serious damage to property, a court summons or other precisely defined events. Fear of a strike, a bad weather forecast, a change in business plans or a cheaper option found later are usually not sufficient if the policy does not contain a special clause allowing broader cancellation.
In the case of a flight or luggage delay, proof is crucial. The insurer may request a carrier confirmation of the delay, boarding passes, receipts for necessary expenses, confirmation of the report of lost luggage and proof that the trip was indeed planned. Compensation is often not paid immediately after the first few minutes of delay, but only after the contracted threshold, for example after a certain number of hours. Also, not every expense incurred while waiting is reimbursed. The cost must be reasonable, connected to the disruption and within the policy limits.
Connections and separate tickets: the most dangerous gray area
One of the most important questions when planning a trip is whether the flights were purchased in one reservation or as separate tickets. If the trip was purchased as a single reservation to the final destination, the rules on passenger rights and carrier responsibility are usually clearer. If the first flight is delayed and because of that the second segment of the same trip is missed, the passenger may have the right to rerouting and other forms of protection, depending on the circumstances and applicable rules. But if the flights were purchased separately, the second carrier often looks only at its own ticket: the passenger did not show up on time and the reservation may be considered missed.
Separate tickets have become common because they allow a lower price and greater flexibility. The traveler himself combines a low-cost flight to a major hub and then a long-haul flight by another carrier, with a few hours in between. On paper this looks rational, but the risk is significantly higher. A delay of the first flight, longer passport control, waiting for luggage or a change of terminal is enough to miss the onward journey. In such a situation, the airline on the second ticket does not have to recognize the problem as its responsibility, and a new ticket can be many times more expensive than the initial saving.
Travel insurance can help with a missed connection, but only if the policy clearly covers it. Some policies distinguish a missed connection on public transport from a missed flight due to one's own planning of too short a gap. Some require a minimum time planned for the connection, some exclude separate tickets, and some recognize the cost only if the delay is confirmed and occurred due to a reason listed in the terms. That is why, when traveling with separate tickets, it is more important to check the insurance than with a simple direct flight.
Strikes are not always the same risk
Strikes are one of the reasons why travelers are increasingly thinking about insurance. But here, too, there are differences that are often overlooked. A strike by airline staff, an air traffic control strike, a strike by airport security staff or a general strike in public transport are not always treated the same. In the European passenger rights system, the important question is whether these are extraordinary circumstances that the air carrier could not have avoided even if it had taken reasonable measures. Monetary compensation depends on this, but the right to care and information may exist even when compensation is not applicable.
Insurers may also view a strike differently. Some policies cover delay or cancellation due to a strike if the strike had not been announced before the policy was purchased. Others exclude labor disputes, strikes or events that were already known at the time of contracting. That is why it is risky to buy insurance only after the media have already published an announcement of a strike. Insurance is intended for uncertain events, not for a problem that has already become predictable.
Rent-a-car and excess: a policy does not mean there is no cost
Vehicle rental is another area in which concepts are often confused. Basic vehicle insurance, a comprehensive package, theft insurance, reduction of liability, card deposit and excess coverage are not the same thing. A traveler may arrive at the counter convinced that he has “taken full insurance”, and then discover that a high deposit is blocked on his card or that he is still personally liable for damage up to a certain amount. An additional travel policy may cover reimbursement of the excess, but it usually does not remove the obligation to first pay the damage to the rent-a-car company and then submit a claim to the insurer.
When renting a vehicle, several details should be checked: how much the deposit is, what the excess is for damage and theft, whether the coverage applies to glass, tires, underbody and roof, whether crossing the border is allowed, what happens when driving on gravel roads and whether every damage must be reported to the police. Situations in which the vehicle is picked up late due to a flight delay are especially sensitive. If the branch has limited working hours or the reservation is valid only until a certain hour, the traveler may be left without a vehicle or pay a higher price for a new category.
Expensive excursions and tickets: the fine print decides on the refund
Modern travelers increasingly buy excursions, guided tours, tickets for museums, concerts, sports events, theme parks and transfers in advance. Such services often have strict cancellation deadlines because organizers work with limited capacities. If a flight is delayed and the traveler does not arrive for the excursion, the organizer may refuse a refund because the service was available at the contracted time. This feels unfair to the traveler, but legally it may be in accordance with the purchase terms.
Travel insurance may reimburse part of such costs if the policy includes trip interruption, travel delay or missed prepaid services. But this is not universal. Some policies recognize only larger travel arrangements, not individual tickets. Some require proof that the service could not be used because of a covered event, not because of one's own change of plan. With expensive excursions and events, it is therefore important to check both the seller's terms and the insurance terms, especially if the amounts are non-refundable.
Package holidays in the European Union enjoy special protection when the conditions for a package travel are met, for example when transport and accommodation or other tourist services are combined. This protection includes information obligations, organizer responsibility for the proper performance of services and protection in the event of insolvency. The Council of the EU announced on 30 March 2026 that revised rules had been adopted that further strengthen the protection of package travel users, including clearer information, cancellation rules and protection in the event of insolvency of service providers.
Travel insurance does not erase passengers' legal rights
It is important to emphasize that insurance must not be an excuse for a carrier or organizer to avoid its own obligation. If a passenger has the right to a refund, rerouting, care or compensation under applicable regulations, the fact that he has an insurance policy does not mean that he must waive those rights. In practice, it is best to simultaneously keep documentation for both procedures: a claim against the carrier and a claim against the insurer. Some costs may belong to one system, some to the other, and double recovery for the same damage is usually not allowed.
In the event of travel disruption, one should immediately request written confirmation of the delay or cancellation, save boarding passes, receipts, communication with the hotel, carrier notices and photographs of relevant documents. If luggage is lost or delayed, the problem should be reported at the airport and the appropriate report requested. If the trip was purchased as a package holiday, the organizer should be contacted, not only the individual service providers. If the reservation was made through a platform, one should check who the actual contractual partner is because the platform, hotel and local agent may have different responsibilities.
How to read a policy before traveling
Before purchasing a policy, the most important thing is to check several questions. Does the insurance cover only medical costs or also cancellation, interruption and delay of travel? Is it valid for all countries being visited, including transit countries? What are the limits for luggage, electronics, cash and documents? Is there a deductible excess? Are strikes, weather events, missed connections, separate tickets, sports activities, chronic illnesses or pregnancy covered? Must the policy be purchased immediately after the reservation for trip cancellation to apply? Are there deadlines for reporting damage and an obligation to contact the assistance center before creating a larger cost?
Practical rules before departure
- Check whether the flights are on one reservation. If they are not, leave significantly more time between the arriving and departing flight and check whether the policy covers a missed connection on separate tickets.
- Buy insurance early enough. Coverage for trip cancellation often applies only if the policy was contracted before the problem became known or within the period prescribed by the insurer.
- Compare limits and exclusions, not just the price. A cheap policy may be sufficient for basic medical coverage, but insufficient for expensive arrangements and complex itineraries.
- Keep all documentation. Delay confirmations, luggage reports, receipts and communication with service providers make the difference between an orderly claim and a rejection.
- Do not assume that a credit card covers everything. Card insurance can be useful, but often has special terms, limits and the rule that the trip was paid with that card.
Travel has not turned into a constant risk, but it has become less tolerant of planning errors. One separate ticket, a misunderstood rent-a-car package or a non-refundable reservation may be enough to significantly complicate a holiday or business trip. Travel insurance should therefore be viewed as part of preparation, just like checking a passport, departure time or entry conditions for a country. It is not a magical solution, but it is often the difference between an inconvenience that can be financially limited and a problem that costs many times more than the trip originally cost.
Sources:- European Commission / Your Europe – air passenger rights (link)- European Commission – overview of passenger rights in the EU before traveling and procedures in case of problems (link)- Council of the European Union – adoption of revised rules on protection of package travel users, 30 March 2026 (link)- Your Europe – rights in package travel and linked travel arrangements (link)- European Consumer Centres Network – travel and consumer rights (link)- European Consumer Centres Network – consumer rights when renting vehicles in Europe (link)- IATA – Global Outlook for Air Transport in 2026 (link)
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