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The Department of Transportation is scrapping a proposal that would have required airlines to compensate travelers for interrupted flights. While the proposal never went into effect, passengers can still protect against delays and cancellations with travel insurance.
DOT Says You’re on Your Own
The White House rejected a Biden-era proposal that would have required airlines to provide cash compensation between $200 and $300 to passengers for delays of at least three hours and $375 to $525 for delays of at least six hours but less than nine, and up to $775 for longer delays, as well as considerations for cancellations.
The proposal, set forth by the Biden administration in December 2024, would have additionally required airlines to rebook passengers for free on the next available flight and cover meals, overnight lodging and related transportation expenses when a disruption is airline-caused.
Canada, the European Union, the United Kingdom and Brazil are some of the countries that have consumer travel protections in place.
The Trump administration withdrew the proposal in a notice posted on Thursday, stating that the decision remains “consistent with department and administration priorities,” as first reported by Reuters.
According to the DOT’s Airline Cancellation and Delay Dashboard, currently 10 major carriers are committed to rebooking passengers for no extra cost on the same airline for canceled flights, including Delta, JetBlue and American.
None of the ten carriers listed, however, is committed to providing cash compensation for a flight delay or cancellation that lasts three hours or more, and only four carriers listed—Alaska, Hawaiian, JetBlue, and Southwest—will provide credit or travel vouchers for flights with delays of three hours or more, or ones that result in cancellation with the same wait time.
How You Can Remain In Control
While no airline will be held accountable for delays and cancellations within its control, passengers can remain in the driver’s seat with travel insurance policies that protect against trip interruptions.
Not all travel insurance is built the same: Some policies might cover trips only if you experience a medical emergency, some are exclusively for cruises, and others provide additional perks like compensation for baggage delays.
Source: Forbes Advisor Research. Average costs are based on various trip costs, ages and number of travelers.
For flights, our recommended picks include Starr: Premier, which kicks in when a traveler has waited six hours or more, providing $1,500 for the wait period. Starr also provides “cancel for any reason” (CFAR) coverage as an upgrade, which can come in handy.
Coverage plans like PrimeCover: Luxe stand out with trip interruption coverage. PrimeCover will reimburse travelers 200% of their trip cost, an offer that trumps many insurance competitors. The service also offers a CFAR upgrade with 75% reimbursement.
Trawick International’s Safe Travels Voyager plan is also a great option for delays. Out of 69 insurance plans we researched, the Safe Travels Voyager plan came out on top with its delay reimbursement, offering passengers benefits of $3,000 per person after a six-hour waiting period. For added convenience, trip delay coverage can be upgraded to reimburse $4,000 or $7,000.
Bottom Line
While the federal government has scrapped proposed consumer travel protections, passengers can still practice agency by purchasing travel insurance policies. Read the terms and conditions of each policy to understand when your benefits kick in and compare policies to get the best coverage for your circumstances.