As you’re booking the flight for your next trip, you’re faced with a dilemma. Should you buy the refundable airline ticket or the non-refundable ticket?

The cheapest non-refundable fare—often labeled the Saver, Basic, or Economy fare—will save you money, maybe even hundreds of dollars. But these tickets are also the most restrictive, so you risk losing it all if you need to change or cancel your trip.

The refundable fare is more expensive, although it often includes perks, such as no bag fees, better seat choices, and earlier boarding. But if you get the refundable flight, can you save money by skipping the travel insurance?

The short answer: The best ticket choice will depend on your budget and your flexibility. And no matter which you pick, travel insurance is almost always a good buy. That’s because it can protect much more than the price of your ticket, including trip delays, baggage delays, medical emergencies, and more.

Every traveler’s situation is different! Here’s how to make sure you buy the right kind of ticket and the right travel protection.

First, read your airline’s specific flight cancellation and ticket change policies.

If you have to cancel a nonrefundable flight ticket, will you lose all the money you spent? In most cases, no. “As long as you cancel well before your flight, you should be able to receive some sort of travel credit,” Travel + Leisure explains.¹ If you used miles to purchase the flight, redepositing those miles is usually simple. If you paid with a card, you’ll typically receive a voucher you can use for another flight (a cancellation penalty may be charged).  

If you’re changing your nonrefundable flight rather than canceling it, you may not lose any money at all. Most major airlines only charge a change fee if you bought the cheapest economy fare.

When you’re canceling a flight, timing does matter. Did you know that airlines are required by law to give you a full refund if you cancel your reservation within 24 hours of purchase, as long as you buy the ticket at least seven days before departure? An airline may also allow customers to reserve a ticket at a set price, without paying, for 24 hours.²

That’s the good news. The bad news is that some airlines charge hefty fees if you cancel your flight too close to departure. For example, Allegiant won’t give you any refund or flight credit at all if you cancel within 7 days of departure. Southwest, on the other hand, is famous for its generous cancellation policy. Cancel within 10 minutes of departure, and you’ll get a full credit or full refund (depending on the type of fare you bought).³

Second, make sure you understand how trip cancellation insurance works.

If you buy travel insurance, your trip cancellation benefits can reimburse you for a canceled flight (plus other pre-paid, nonrefundable trip expenses) when you cancel for a covered reason.

Covered reasons are specific situations and events that, when they occur, mean you may be eligible to make a claim. Your insurance plan documents lists the covered reasons for trip cancellation, such as:

• You or a traveling companion becomes seriously ill or injured, or develops a medical condition
• A family member who is not traveling with you suffers an illness, injury, or medical condition that’s life-threatening and/or requires hospitalization.
• A traveling companion or family member dies
• You need to attend the birth of a family member’s child
• Your primary residence or your destination is uninhabitable

If you cancel your flight for a reason that’s not covered, such as missing your flight or simply deciding not to go, travel insurance can’t reimburse you for your lost trip costs.

If you’re worried you might have to cancel a trip for a reason that’s not covered by travel insurance, you can add the Cancel Anytime optional upgrade to the OneTrip Prime or OneTrip Premier plan. Cancel Anytime can reimburse 80% of your lost non-refundable trip costs if you cancel your trip for almost any unforeseeable reason your plan does not already cover.

Then, check the price difference between buying travel insurance and getting a refundable ticket.

Most travelers think they can save money by buying the refundable flight instead of travel insurance, but that’s not always the case! For example, say a 32-year-old traveler is flying round-trip to Seattle from Atlanta.

• The cost of a refundable ticket: $426
• The cost of a non-refundable ticket: $326
• The cost of the OneTrip Cancellation Plus travel insurance plan for the non-refundable ticket: $21

In this scenario, it’s cheaper to buy the non-refundable ticket and insurance, which includes trip cancellation plus trip interruption and up to $150 in travel delay protection. If you’re worried you may have to cancel for a non-covered reason, however, a refundable ticket may be the best choice. Run the numbers for your specific trip to see what works best for you.

Let’s cut to the chase: Should you buy travel insurance or a refundable flight? Or both?

It helps to look at some real-world examples and imagine the outcome.

Planning to fly somewhere soon? The time to protect your trip with travel insurance is now. Get a quote.

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