Trip cancellation insurance protects you from financial losses that might occur if your trip gets cancelled due to an unforeseen event. In simple words, trip cancellation insurance minimizes the risk of loss by covering you for the cost of tickets and other pre-paid expenses in the event of trip cancellation due to covered reasons.

For example, say you have already booked your trip to Hawaii, including your flight, hotel rooms and rental car reservation. However, your spouse gets sick a day before you leave for your trip and the doctor advises her not to risk her health further by traveling long distances. In this case, canceling the trip might cost you dearly, risking all the money you have invested in your trip. However, with trip cancellation coverage, you are protected against financial losses even if unforeseen circumstances force you to cancel your trip.

Trip cancellation insurance will typically cover you for the following situations:

  • You or your spouse or any other person dependent on you falls sick
  • Death of a traveling 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 at the destination you have planned your trip
  • You or your companion is affected by a termination or a layoff
  • Inclement weather
  • Your spouse becomes pregnant and is not allowed to travel during pregnancy
  • You or your traveling companion is quarantined
  • You or your traveling companion is summoned by the court to appear

There are some other plans that may provide optional coverage on flexible terms, which are known as "covered for any reason" plans. This option will allow you to cancel your trip for any reason. A few examples of "covered for any reason" situations include:

  • You feel unsafe to travel due to swine flu or any such reason
  • You have last-minute important work in your office, which needs to be done immediately
  • Your child or grandchild wants you to support them by being with them for the tournament in which they are participating

Who Needs Trip Cancellation Insurance?

It is wise to get trip cancellation coverage for the following reasons:

  • Expensive Trips: If you are going on an expensive trip, it is always a wise decision to insure yourself against the risk of losing money spent on buying plane tickets and other non-refundable expenses should you need to cancel the trip. This will help you protect yourself against the financial loss that you might face due to cancellation of the trip.
  • Travel plans made in advance: If you have booked your travel tickets far in advance of your departure date, the chances of an unforeseen incident are high. In such a case, it is advisable to get trip cancellation coverage.
  • Cruises: It is quite difficult and cumbersome to cancel a cruise booking and the cancellation process is quite complex. Trip cancellation coverage would give you the peace of mind that you are covered against unforeseen incidents.
  • Traveling with kids: Kids can fall sick easily. If your child gets sick at the last minute and you are forced to cancel the trip, insuring yourself against last moment cancellation protects your investment in the trip.

Learn more about trip cancellation insurance with medical coverage and trip insurance plans.

Facts and Important Things to Know:

  • Most of the plans are available for US or Canadian residents
  • The insurance policy covers you for 30 days, beyond which an additional per-day fee is charged
  • Pre-existing condition coverage is available if you buy trip coverage within a restricted time limit mentioned in the plan
  • Basic trip coverage generally includes trip cancellation, trip delay, trip interruption, baggage loss/delay, emergency medical coverage
  • The pricing and cost of a trip insurance policy depends on the trip cost and age of the traveler

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Information provided here is high level, provided for your convenience and information purpose only. Please review the Evidence of Coverage and Plan Contract (Policy) for a detailed description of Coverage Benefits, Limitations and Exclusions. Must read the Policy Brochure and Plan Details for complete and accurate details. Only the Terms and Conditions of Coverage Benefits listed in the policy are binding.