Perhaps you’ve spent weeks looking forward to your upcoming vacation. You’ve purchased everything from flights and accommodations to excursions and rental vehicles. You’ve also smartly purchased travel insurance. Then, right before your trip, a situation arises that forces you to cancel your trip.
If that’s the case, do you know what to do? Can you cancel a trip with travel insurance? Here, we’ll guide you through what to do to utilize your trip cancellation insurance.
What Are Covered Reasons for Trip Cancellation?
Trip cancellation insurance protects you from certain financial losses that could occur if your trip gets cancelled due to certain unforeseen circumstances. However, you can’t assume that you’ll be covered regardless.
What is a covered reason for trip cancellation? Coverage limits vary from plan to plan and from policy to policy, so you’ll want to be sure you read the plan details before buying insurance plan for trip cancellation.
With that being said, these are some situations that basic trip cancellation insurance will normally cover:
- You, your travel companion or a dependent gets sick
- Death of a travel companion or family member
- Damage to your house in a natural disaster, such as a flood, fire or earthquake
- Complete cessation of travel services due to strike
- Terror strike in your destination country
- You or your companion are affected by a termination or a layoff
- Inclement weather
- You or your travel companion becomes pregnant and is not allowed to travel during pregnancy
- You or your travel companion is quarantined
- You or your travel companion is summoned to appear in court
Meeting Trip Cancellation Requirements
Although getting sick is listed as a reason for coverage, does that mean that if you wake up on the morning of your flight with a stuffy nose and sore throat, you can simply cancel and get your money back? Generally, there is more to it than that.
Many policies will require your illness or injury to be significant enough to make any reasonable person cancel their trip. Likewise, you must report all cancellations to your insurance provider within 48 hours of the event causing cancellation (in this case, the event causing cancellation would be sickness). In addition to letting your insurance know, you would also need to be examined by a physician or urgent care medical professional who can provide a doctor's note certifying that the illness prevents travel. The majority of insurance policy plans will support cancelling due to a sickness, but only if there is documentation such as a doctor's note.
If you were to wake up feeling sick the day before your trip and decide to cancel without having sought medical advice, benefits may not be available since there would be no way to verify the illness. If, however, there were extenuating circumstances, claims would take them into consideration. In that case, you should gather as much documentation as possible to support the events that led to the cancellation. Keep in mind that benefits typically require some documentation or form of medical treatment, so seeking care when needed can strengthen your claim.
Ultimately, each policy has specific requirements and coverage, so be sure to check the plan details of the specific policy you select.
Cancel For Any Reason Travel Insurance (CFAR)
One of the assumptions many travelers make is that purchasing trip cancellation insurance allows them to cancel their trip for any reason and still receive reimbursements. That’s not the case. While trip cancellation insurance covers many common reasons for cancelling a trip (inclement weather, injuries, or illnesses), it doesn’t mean that you can cancel your trip for any reason. For these instances, you'll want to purchase any reason trip cancellation insurance.
To receive that benefit, you’d need to purchase a specific add-on benefit called Cancel For Any Reason (CFAR). Like the name suggests, this does allow you have trip cancellation insurance for any reason and still recoup some of the prepaid expenses of your trip.
Let's imagine you are going on your first solo trip to Europe. As the trip gets closer, you realize that maybe you are just not ready to travel alone. Luckily, CFAR can cover your change of mind, potentially recovering about 50-75% of your prepaid nonrefundable expenses.
What to Do If Part of Your Trip Is Canceled
If only part of your trip is cancelled (for example, your initial flight has a long delay due to inclement weather), trip cancellation insurance can help you in recovering costs caused by the delay. Each policy and plan is different and may have different definitions for what constitutes a “delay” and at what point you can receive benefits.
However, travel delay insurance benefits will often cover you for costs related to accommodation, meals, and transportation connected to the delay.. In the event of a delay, you may lose out on the beginning of a trip, but with trip insurance, you can typically catch up and enjoy the remainder of your trip plans.
In the rare event that you’re not able to get your original itinerary back on track, many trip cancellation policies may consider that sufficient reason to cancel the entire trip. At that point, you would be able to receive the reimbursement amount specified in your policy documentation.
How Trip Cancellation Insurance Works
No matter whether you end up experiencing a minor flight delay or if you have to cancel your entire trip due to a covered reason, you will need to submit a claim regarding your case in order to receive reimbursement. This means you'll need to provide as many details surrounding your trip as possible, such as:
- Receipts for any expenses
- Copies or any sort of travel confirmation (flights, hotel reservations, car rental reservations)
- Any documentation that will support why you needed to cancel your trip
- Any confirmation of medical diagnosis or doctor’s recommendations
- Documentation of any refunds that have already been provided
Because traveling is such an enjoyable experience, it can be heartbreaking when you have to cancel a trip. Luckily, travel cancellation insurance helps you recoup some of the financial expenses in the event that you have to pull the plug on your plans. Just make sure you read your policy documentation carefully so you know exactly what your coverage allows.
Protect Your Travels With Trip Insurance
With trip insurance, you can enjoy your travels with peace of mind knowing that if your trip were canceled or interupted for a covered reason, trip insurance would have your back.
Still have questions about trip cancellation insurance? Reach out to our Customer Success Team for further assistance.
Frequently Asked Questions About Trip Insurance (FAQ)
If the airline I am flying with offers a refund for cancelling my flight, can I still file a claim with my trip insurance company?
In general, trip insurance typically covers your prepaid nonrefundable expenses, meaning that if your flight was cancelled and refunded either by cash or flight credit, you likely cannot claim your money back through your trip insurance. However, trip insurance can cover anything else that your airline did not cover. For example, any hotels or tours that were already booked may be eligible for a claim to help recoup those costs.
What is not covered through trip cancellation insurance?
Trip insurance coverage varies from plan to plan, that being said, it is important to check your policy plan details to determine what is not covered. Common reasons that are typically not covered through trip cancellation insurance include:
- Changing your mind (unless you opted for Cancel For Any Reason (CFAR) coverage)
- Pre-existing conditions (unless you have a pre-existing condition waiver)
- Non-emergency or routine care
- Drug or Alcohol use
- Normal pregnancy
- Self-inflicted harm
Do I have to cancel my flight before filing a claim?
If you need to cancel your trip, you should cancel your flight reservation directly with the airline or travel agent, and then proceed to file a claim. In the event that the airline refunds your ticket, remember that the amount you claim should cover only your nonrefundable travel expenses (including hotels, tours, etc). Therefore, your claim amount should be your nonrefundable travel plans minus any refunds received, up to your eligible limits.
If I already booked my trip, can I still add trip insurance?
Yes, you can purchase trip insurance after you booked your trip, but timing does play a role when it comes to coverage benefits and protection. It is best to purchase trip insurance within 14-21 days of your initial trip deposit if you are looking to access premium add-on benefits such as Cancel For Any Reason (CFAR) insurance and pre-existing medical condition waivers.
If I decide to wait to buy trip insurance, will it cost less?
Not quite. Travel insurance is standardized and highly regulated by law, meaning all insurance plans have to meet the same standards and be the same price regardless of who, when, or where you buy it from. Therefore, you won't be missing out on a lower price if you buy today.. Travel insurance premiums are primarily calculated based on trip cost, traveler age, trip length, and the coverage options selected. Waiting until closer to your departure date won't typically save you moneyworse yet, waiting will actually limit your benefit options.
On the flip side, one way to “save” on your insurance is to book your trip and your insurance early. When you book your trip earlier, you get the opportunity to score early bird travel deals. If your trip costs less, then it costs less to cover it.
When does travel insurance start and end?
As long as your policy start date is correctly stated to the day you leave for your trip, the travel insurance start date is the day you physically leave your house for your trip, while trip end date is the day you return home from your trip. In most cases, trip cancellation starts the moment you purchase your policy and ends the day you start the trip. While you are on your trip as well as returning home, you could be eligible for the following benefits, depending on your policy plan:
- Trip Interruption and Delay
- Missed Connection
- Baggage Damage/Loss and Delay
- Medical Insurance
- Emergency Medical Evacuation
- Accidental Death & Dismemberment
- Travel Assistance
- Rental Car Damage
How much coverage does Cancel For Any Reason (CFAR) insurance provide?
Cancel For Any Reason insurance allows you to cancel their trip for any reason and still receive reimbursement for non-refundable trip expenses, usually 50-75% of the cost. If you decide to cancel due to a personal or non-covered reason, CFAR can help save you money and provide a greater peace of mind.
