Ticket insurance is a type of insurance policy that provides coverage for concert, theater, sports or other event tickets in case you are unable to attend the event. It helps reimburse the cost of tickets if certain covered situations arise that prevent you from going.
What does ticket insurance cover?
Ticket insurance policies can cover a variety of situations that may prevent you from being able to use your tickets. Some common covered reasons include:
- Illness, injury or death of the ticket holder or a member of their immediate family
- Pregnancy and childbirth if the event falls within a certain number of weeks of the due date
- Being called for jury duty or subpoenaed
- Severe weather events like hurricanes or snowstorms that prevent travel
- Traffic accidents en route to the event
- Home emergencies like fires, burglaries or flooding
- Job layoffs after the tickets were purchased
- Military deployment
The specifics may vary by insurance provider, so be sure to check the details of a policy carefully. Some policies only cover illness and injury while others have more expansive coverage. There are also different requirements around timing of the incident and when you need to file a claim.
How does ticket insurance work?
You can purchase ticket insurance directly from the event host, ticket reseller or third-party insurance companies. Policies are available as add-ons when you buy event tickets online or over the phone.
The cost of insurance is typically a percentage of the base ticket price. For example, you may pay 15% above the ticket cost to add insurance. So a $100 ticket would cost $115 total with insurance added. There may also be smaller flat administrative fees.
After purchasing a policy, you’ll receive the full documentation outlining the coverage details. Be sure to read this carefully and note any time limits for filing claims. Many policies must be activated within a certain number of days before the event.
If one of the covered situations occurs that prevents you from attending, you would file a claim with documentation supporting the reason. For example, if you get sick, you may need a doctor’s note confirming you were medically unable to go. The claims process varies by provider but may require multiple forms and proof.
If approved, you would receive the reimbursement within a certain number of days, often 7-14 days. Reimbursements are typically for the base ticket price only, not fees or shipping. Some policies offer reimbursement in the form of event tickets for a future date rather than a cash payout.
Why buy ticket insurance?
There are a few key reasons you may want to purchase ticket insurance:
- Protect against lost costs – Tickets can be expensive, so insurance provides peace of mind that you can get your money back if plans change for covered reasons.
- Cover circumstances out of your control – Illness, work changes and severe weather are examples of situations that arise unexpectedly.
- Avoid non-refundable ticket policies – Many event tickets today are non-refundable, so insurance is the only way to potentially get reimbursed if you can’t go.
- Resell unwanted tickets – Some policies may cover situations where you simply choose not to use the tickets, allowing you to file a claim and resell the tickets.
Ultimately, it comes down to your own tolerance for risk. If you would take a major financial hit by not being able to attend after buying tickets, insurance can make sense for risk mitigation.
Are there exclusions?
Yes, ticket insurance does come with exclusions where claims would be denied. Exclusions help prevent fraud and abuse of the policies. Some common exclusions include:
- Pre-existing medical conditions
- Intentionally self-inflicted injuries
- Mental health disorders unless hospitalized
- Pregnancy when conceived before the policy purchase date
- Claims within the policy waiting period (typically at least 48 hours before event)
- War, terrorism, illegal acts
- Intoxication or substance abuse
There may also be exclusion around risky event types like extreme sporting events where injuries are more likely. And some policies exclude reimbursement for fees above the base ticket price.
If your situation fits one of the exclusions, your claim would be denied and you would not receive any reimbursement. So it’s important to read and understand the fine print.
What does ticket insurance not cover?
There are a few common things that standard ticket insurance policies do not cover:
- Change of plans – Deciding you no longer want to attend an event is not covered.
- Work schedule changes – Your work schedule changing after you purchase tickets is generally excluded.
- Event cancellation – The event being cancelled completely is not covered by ticket insurance.
- Event postponement – The event being postponed to a future date is not covered.
- Event changes – Changes to event lineups, performers, etc. are excluded.
These situations that are out of your direct control would not be covered by a standard ticket insurance policy. That is because the intent is to reimburse you when you are unable to go, not when the event itself changes.
There are special canceled event insurance policies that provide coverage when the event is cancelled or postponed altogether. But the standard ticket insurance focuses on personal situations preventing you from attending.
What types of tickets can be insured?
Ticket insurance is available for many types of events, including:
- Concerts
- Theater performances
- Sporting events
- Comedy/stand-up shows
- Broadway shows
- Festivals
- Amusement parks
- Museums
- Zoos
- Aquariums
- Tourist attractions
- Cruises
- Airline flights
The most common option is concert ticket insurance since these are high-demand events with expensive tickets. Sporting event insurance is also very popular.
Some insurance companies focus specifically on certain event types like concerts or theater performances. Others offer insurance plans that can be used across various events and travel bookings.
There is also variation in which ticket resellers and websites offer insurance options. Many major ticketing platforms like Ticketmaster now provide insurance add-ons during checkout.
How much does ticket insurance cost?
The cost of ticket insurance can range from 10% to 25% of the base ticket price. Some factors that influence cost include:
- Event type – High-demand events often have pricier insurance.
- Coverage plan – More comprehensive plans cost more.
- Insurer – Prices vary among different insurance companies.
- Ticket price – Insurance for expensive tickets may have higher rates.
- Add-on fees – Administrative fees and processing fees may apply on top of the base rate.
For a concert ticket costing $100, you may pay $15-$25 for the insurance option. So the total with insurance would be $115-$125 for that ticket.
While the insurance fee may seem like an unnecessary add-on cost, it’s relatively small compared to the total ticket price. And having the coverage provides peace of mind and financial protection in case you need to file a claim.
Are there limits on reimbursements?
Most ticket insurance policies have set limits on the maximum reimbursement that will be paid out per ticket and per event. Common limits include:
- $500 per ticket
- $1,000 per ticket
- $3,000 per event
This protects the insurance companies against very large claims. If you have a valid claim for a $10,000 ticket, you may only receive the $1,000 limit as reimbursement.
The limits help keep policies affordable for most standard event tickets. Very expensive tickets may require special insurance plans with higher limits, likely at a higher premium cost.
What insurance companies offer ticket insurance?
Some top insurance companies that offer ticket insurance options include:
- Allianz
- AXA
- Generali
- Nationwide
- Travel Guard
- TravelInsurance.com
- Travel Insured International
- USI Travel Insurance
There are also many online websites focused specifically on event ticket insurance such as Ticketguardian.com, Eventticketinsurance.com, and Insuremytrip.com.
Some ticket sellers like StubHub and TickPick have integrated insurance options at checkout through partnerships with insurance companies. And major ticket platforms like Ticketmaster allow add-on insurance plans during purchases.
Should I buy ticket insurance?
Here are some tips on when ticket insurance may be beneficial:
- You are buying expensive non-refundable tickets – Insurance can recoup costs if you can’t attend.
- You are traveling to the event – Flights and hotels add to the cost and risk.
- You have a busy schedule or unpredictable job – Key person events are riskier.
- You are buying well in advance – More time before the event means more potential for situations coming up.
- You have health conditions – Higher likelihood of illness preventing attendance.
- The event is during winter months – Weather issues more likely.
And examples of when insurance may be less necessary:
- The tickets are inexpensive or you can easily afford to lose the cost
- The event is local to you with no travel required
- You have very flexible, predictable circumstances or schedule
- You are buying tickets very close to the event date
- The event is during summer months with less weather concerns
Overall, it comes down to your personal tolerance for risk and how much of an impact losing the ticket value would have on your finances. For expensive trips and events, insurance can provide valuable peace of mind.
How to buy ticket insurance
Here are some tips for purchasing ticket insurance:
- Look for insurance add-ons when buying tickets online or over the phone for the event.
- Compare options and pricing from multiple insurance providers.
- Read policy details carefully for coverage amounts, exclusions, and claim filing timelines.
- Activate the policy shortly after purchasing tickets, often within 7-14 days.
- Save insurance documentation, policy details, and proof of purchase.
- Mark your calendar for important dates like when coverage takes effect and filing deadlines.
Having the insurance details handy will make the claims process smoother if you do need to file down the road. Be sure to follow all documentation requirements when submitting a claim.
Conclusion
Ticket insurance provides a way to recoup the costs of event tickets if you can’t attend for covered reasons. It makes sense for expensive non-refundable tickets, especially when travel is involved. Prices typically range from 10-25% of the base ticket cost.
Carefully review policy coverage, exclusions, limits, claims processes, and purchase timing requirements when buying ticket insurance. This ensures you understand exactly what is and isn’t covered and can file claims smoothly. Consider your own risk tolerance and financial situation when deciding if ticket insurance is worth the added cost.