Airline Travel Insurance — Is It Worth Adding to Your Flight Booking in 2025?

You’ve probably been there—booking a flight online, picking your seats, maybe splurging a bit on extra legroom or checked baggage. Just as you’re about to make payment, a little checkbox pops up: Would you like to add travel insurance to your booking?

It’s a tempting convenience. Just one click, and you’re covered. But is it a smart financial decision, or just another sneaky upsell?

In this comprehensive guide, we’ll walk you through everything you need to know about airline travel insurance in 2025. Specifically, we’ll look at the pros and cons, the coverage vs cost tradeoff, and how these insurance plans compare across major airlines operating in and out of Singapore.

By the end, you’ll know when it makes sense to opt in—and when you’re better off skipping it.

What is Airline Travel Insurance?

Airline travel insurance is a policy offered directly by an airline during your flight booking process. It typically appears at the final step of your checkout, right next to extras like meals or seat upgrades.

This type of insurance is underwritten by major insurers (like Allianz, AIG, MSIG, Chubb, etc.) and is tailored to cover unexpected incidents that might affect your trip. But unlike standalone travel insurance, you don’t get to compare plans—it’s a one-size-fits-all offer.

What Does It Cover?

Most airline travel insurance policies offer coverage in areas such as:

• Trip cancellation or curtailment

   

• Medical emergencies abroad

   

• Emergency evacuation

   

• Lost or delayed baggage

   

• Missed connections

   

• Flight delays

   

Some even include Covid-19 related coverage, though with conditions. But how comprehensive is this protection really—and is it worth what you pay?

Let’s find out.

How Much Does Airline Travel Insurance Cost?

To give you a clearer picture, we simulated flight bookings across various airlines flying from Singapore and noted the prices and insurance providers involved.

Key takeaway: Airline insurance pricing varies widely, and sometimes without obvious logic. Emirates charges $160 for both Cambodia and the UK, while EVA’s rates are more distance-appropriate.

How Much Coverage Do You Get?

Let’s look at what you’re getting for your money. Here’s a side-by-side comparison of the main benefits offered:

Some clear winners and losers emerge:

• Emirates offers incredible coverage—especially for medical and evacuation—but you’ll pay dearly for it.

   

• Cathay Pacific also provides strong protection, but at $262 for a week, it’s the priciest option.

   

• AirAsia is the most affordable but also has the weakest coverage.

   

Airlines like Singapore Airlines, EVA Air, and Jetstar strike a reasonable balance between price and protection.

Where Airline Travel Insurance Falls Short

Despite their convenience, airline insurance plans often come with fine print that limits their usefulness. Let’s take a closer look at their coverage for trip disruptions and cancellations, one of the most common reasons people make travel insurance claims.

Sounds good on paper, right? But here’s the catch…

Key Exclusions (What They Don’t Cover)

• Government restrictions or border closures (AirAsia, Jetstar, Emirates)

   

• Epidemics or pandemics unless you are individually named in a quarantine order (Singapore Airlines)

   

• Travel agent or tour operator bankruptcy (Cathay Pacific)

   

• Pre-existing medical conditions of you or your family members (Most policies)

   

• Policies bought less than 3 days before departure are usually not covered for cancellations (Jetstar, Scoot, AirAsia)

   

So, if your plans change because of evolving Covid rules or a government mandate? You’re likely not covered—even if you paid for insurance.

Missed Flight Connections

Missed connections are another headache for travelers. Let’s see what kind of compensation you can expect.

In this area, Emirates stands out with over $2,600 in potential compensation. Most budget carriers offer token amounts or skip this coverage entirely.

If you’re catching a tight layover or switching between airports (say, Haneda to Narita in Tokyo), you’ll want a plan that cushions these risks—or choose standalone travel insurance that does.

Medical Emergencies Abroad

This is where travel insurance really earns its keep. A hospital stay overseas—especially in countries like the US, Japan, or Europe—can cost thousands of dollars.

A $10,000 medical limit (AirAsia) might seem fine—until you need surgery overseas. For peace of mind, go with a plan offering at least $150,000 to $500,000, especially for long-haul trips.

What About Covid-19 Coverage?

Covid is still a concern for many travelers. Here’s what you need to know:

• Singapore Airlines: Covers pandemic-related disruptions only if you are named in a quarantine order.

   

• Emirates & AirAsia: Do not cover cancellations related to government travel advisories or border closures.

   

• EVA Air & Jetstar: Limited coverage; often excludes epidemic-related cancellations entirely.

   

To be safe, check if your airline’s policy includes quarantine expenses, trip cancellation due to Covid, or medical treatment if infected overseas.

So… Should You Buy Airline Travel Insurance?

Here’s a breakdown of when it makes sense to opt-in, and when you should skip it.

✅ Good Times to Add Airline Insurance:

• Short-haul trips to ASEAN countries (e.g., Bangkok, Kuala Lumpur) where your main concern is flight cancellation or baggage delay.

   

• Last-minute trips, where convenience beats customisation.

   

• You forgot to buy standalone travel insurance and want quick protection before checkout.

   

❌ When to Skip It:

• Long-haul trips where medical and evacuation coverage is crucial.

   

• Trips with complex itineraries, including multiple airlines or connecting airport transfers.

   

• You have pre-existing medical conditions, which are rarely covered.

   

You want custom add-ons like adventure sports coverage or cruise protection.