US Iran War and Travel Insurance Cover Explained

US-Iran strikes have led to led to travel chaos across the the Middle East. When should travellers know?

Fresh US strikes on Iranian targets on 28 February and consequent retaliatory strikes have triggered widespread airspace closures across parts of the Middle East, causing significant disruption to international aviation and Gulf hub routes.

Airlines including Qatar Airways, Emirates, and Etihad Airways have suspended or cancelled services in the immediate aftermath, while international carriers such as Singapore Airlines, British Airways, Lufthansa and Air India have rerouted or paused select Middle East services.

Ongoing airspace restrictions over parts of Iran, Iraq and neighbouring countries continue to affect schedules, particularly for travellers connecting between Australia, Europe and Asia via Doha, Dubai and Abu Dhabi. Travellers should expect services to resume only once civil aviation authorities confirm that the airspace is safe to reopen.

War-related disruptions and travel insurance

Travellers should be aware that travel insurance is unlikely to cover cancellations, rerouting, or delays caused by the ongoing conflict.

With airspace closures in place and DFAT issuing Do Not Travel warnings across multiple countries, standard travel insurance policies typically exclude coverage for events arising from war, military action, hostilities, or official airspace restrictions. These exclusions are standard across the industry, meaning claims for cancelled flights, delays, or additional travel expenses linked to these developments are generally not covered.

Additionally, this exclusion applies regardless of when the policy was bought. Even policies taken out well before the conflict began are subject to the same war-related exclusions. This is a broad, market-wide rule that applies to all travellers regardless of purchase date.

What should affected travellers do?

Travellers whose flights are disrupted should contact their airline or travel provider first. If a flight is cancelled by the airline, passengers are generally entitled to a refund or alternative transport. Many airlines are offering travel waivers that allow customers to rebook without change fees or receive travel credits, making the airline the primary avenue for recourse.

Accommodation providers may also offer flexible cancellation or rescheduling options, but this will depend on the specific terms of the booking.

What Australian airlines have said

Virgin Australia has confirmed that several flights operated by partner Qatar Airways between Australia and Doha were cancelled or returned mid-flight following the closure of Qatari airspace. The airline advises affected passengers to monitor flight status closely and contact Virgin Australia for refunds, rebooking, or travel credit options.

Qantas Airways reports that no Qantas-operated flights have been cancelled due to the escalation, but the airline is closely monitoring the situation. Qantas says it may adjust flight paths for safety and will contact customers directly if their bookings are affected.

Both airlines emphasise that safety remains the top priority and advise travellers to stay updated on official communications before travelling.

How government warnings affect cover

Travellers should be aware that official government advisories can further impact your cover.

When a destination is subject to a ‘Do Not Travel’ warning, insurers are generally unable to provide cover for claims directly related to that advice. Travelling against official warnings can affect your eligibility to claims and may reduce access to assistance.

Most policies contain exclusions not only for war, but also for related events such as civil unrest and military operations.

Travellers should always read their Product Disclosure Statement carefully and understand both what is covered and what is excluded.

Should you cancel your trip?

As the situation continues to unfold, travellers booked to visit or transit affected parts of the Middle East should monitor official advisories and airline communications closely. Given the heightened, fluid nature of current events, travellers may also want to consider flexible airfares and bookings, rather than assume they will be covered by insurance.

Plan ahead and check your policy

The latest escalation highlights a common misconception about travel insurance. While policies are designed to cover unexpected events, war and related disruptions remain standard exclusions across the industry.

Before travelling, it is important to understand exactly what your policy covers and what it does not. Being informed is just as important as being insured. Know your rights with airlines and travel providers and base your travel decisions on accurate, up-to-date information.