Insurance Blog

Posted: 05/09/20236,999 Views

On Monday May 8, President Joe Biden proposed a new rule that could change what happens when flights are canceled, at least on US-based airlines. The rule, which Biden laid out in remarks at the White House, would require US airlines to reimburse travelers for the cost of hotels, transportation, meals, and rebooking fees, as well as give the customer their money back for the cost of the canceled ticket when a flight is canceled due to an issue with that airline.

Biden stated during the remarks, "Later this year, my administration will propose a historic, new rule that will make it mandatory, not voluntary, but mandatory, for all US airlines to compensate you with meals, hotels, taxis, rideshares, rebooking, food, fees in cash, miles, and/or travel vouchers whenever they're the ones to blame for the cancellation and delay, and that's all on top of refunding the cost of your ticket."

Currently, most US-based airlines only offer compensation for the price of the ticket in the event of a cancellation. And many airlines attempt to offer this compensation in the form of vouchers rather than an actual refund. If implemented, this rule could change that, as it would guarantee a refund for the cost of the ticket, as well as for additional expenses incurred due to the cancellation. 

In the meantime, the president announced that the government is launching a new website where travelers can view and compare the reimbursement policies of different airlines: flightsright.gov. 

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