Trip Cancellation Insurance (2024)

FAQs

What qualifies for trip cancellation? ›

Trip cancellation insurance provides prepaid, nonrefundable reimbursem*nt for trip expenses if you must cancel a trip due to an unforeseen circ*mstance such as illness, injury, or the death of the traveler or a loved one.

That's why cancel for any reason coverage, or CFAR, can be a valuable add-on. With this type of policy, you can cancel your trip for any reason at all and still get a percentage of your prepaid travel expenses back (typically around 50% to 80% of what you've already paid; percentages vary by provider).

If you need to cancel or cut short your holiday because something unexpected happens, cancellation cover lets you reclaim some or all of the money you've already paid out. So, if you suddenly become seriously ill and can't go on holiday because you need treatment, you can claim on your travel insurance policy.

Trip cancellation insurance can reimburse you for 100% of your nonrefundable and prepaid trip costs if you cancel for a covered reason, which may include: Death of your travel companion, business partner or family member (policies differ on who is considered a family member).

The most common covered reason is unforeseen illness, injury, or death of the traveler, a traveling companion, or a non-traveling family member. Other common covered reasons include terrorism, inclement weather, or a natural disaster, among others. Not being able to travel as planned is a major concern among travelers.

If an airline cancels your flight less than 14 days before departure and you choose to cancel your trip entirely, you're entitled to a refund of both your plane ticket and any pre-paid baggage fees (in most cases). This typically applies even if you have non-refundable tickets.

Factors such as total trip costs, coverage levels, travel destinations, traveler ages and trip payments can affect the price of a travel insurance policy. According to our research, the average cost of travel insurance is $204, but you could pay anywhere between $14 and $765 for travel insurance.

Travel insurance is designed to protect a traveler from certain unforeseeable events—not things that are easily foreseeable, or things that have already happened at the time you purchase your plan. That's why it's smart to buy insurance as early as possible in the booking process.

you fail to pay the premium by the due date. you obtained the policy through misrepresentation or fraud. anyone insured on the policy violated the terms or conditions of the policy.

Most travel insurance policies won't pay out if you're negligent while under the influence of alcohol or drugs, and have an accident or have property stolen.

What does travel insurance cover for trip cancellation? ›

Trip cancellation insurance reimburses you for non-refundable and/or non-transferable deposits on pre-paid travel arrangements and cancellation penalties that a transportation carrier or tour guide may charge.

If your travel insurance policy has a money-back guarantee or review period, you can cancel for any reason and receive a full refund within the timeframe if you haven't filed a claim or departed for your trip yet. But you won't get a premium refund if you cancel your policy after the review period.

Trip cancellation insurance is often sold as an optional coverage to a base travel insurance policy, but some travel insurance companies sell trip cancellation as a standalone policy. Some basic trip cancellation policies allow you to purchase additional coverage types, such as “cancel for any reason” travel insurance.

Travel insurance on credit cards may cover anything from emergency medical treatment to trip cancellations, and some cards may include more types of travel coverage than others. Typically, to be eligible for coverage, purchases like flights, hotel stays, and car rentals must be paid for with your credit card in full.

Travel insurance can provide cover if you need to cancel your flight. This means that if you have to cancel your flight or your holiday for an insured reason such as illness, redundancy or your home becoming uninhabitable you can make a claim on your travel insurance to recoup the cost.

Documentary evidence that confirms the reason for the trip cancellation/ interruption or delayed return (e.g.: police report, death certificate, letter from the airline company, damage report. etc.)

Canceling a nonrefundable fare will result in an e-credit for the full amount paid (minus any cancellation fees, depending on fare type and route). However, if you cancel a refundable ticket, you'll get the amount paid refunded back to your original form of payment.

If you purchased trip cancellation insurance, you'll need to submit documentation that shows why your trip was cancelled and the total amount of your pre-paid, non-refundable trip expenses which you need to be reimbursed.