Trip cancellation insurance protects you from certain financial losses that could occur if your trip gets cancelled due to certain unforeseen events.
For example, say you and your spouse planned a trip to Hawaii. You picked your flight, got hotel rooms and even rented a car. Unfortunately, your spouse gets sick a day before your departure. If you don't have trip insurance, canceling the trip might be costly. However, if you've purchased trip cancellation insurance, you'll be able to recoup these financial losses.
What Does Basic Trip Cancellation Insurance Cover?
What trip cancellation insurance covers will vary from plan to plan and policy to policy, so you'll want to read the plan details and policy fine print before buying trip insurance.
That said, here are some situations basic trip cancellation insurance typically covers:
- Family or travel companion illness
- Death of a travel companion or family member
- Damage to your house due to 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 job 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
Cancel For Any Reason Insurance
With basic trip cancellation, the reasons you can cancel your trip and recoup some financial losses are limited to those reasons explicitly listed as covered in your plan documents. If you decide that you just don't feel like traveling or are concerned about a recent COVID-19 spike in your destination country, basic trip cancellation coverage will likely not protect your investment.
The good news is that trip insurance often includes a Cancel For Any Reason insurance (CFAR) option. Adding CFAR to your trip insurance means that you can cancel your trip for literally any reason and still be reimbursed for certain prepaid travel expenses that would have otherwise been non-refundable.
Why You Need Trip Cancellation Coverage
Whether you opt for the basic trip cancellation coverage that comes with trip insurance, or the more expansive coverage that CFAR insurance offers, it’s wise to get some type of trip cancellation insurance, especially for the following reasons:
- Expensive trips: If you’re going on an expensive trip, it’s always a wise decision to insure yourself in case 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’ve booked your travel tickets far in advance of your departure date, the chances of an unforeseen incident may be higher.
- Cruises: It can be hard to cancel a cruise and still recoup prepaid expenses. Trip cancellation coverage would give you peace of mind, knowing that you’re covered against unforeseen incidents.
- Traveling with kids: Kids can get sick unexpectedly. If you have to cancel your trip due to a child's illness, insurance can protect your investment.
Important Reminders about Trip Cancellation Insurance:
- Trip cancellation is only available with trip insurance, not travel medical insurance
- Most of the plans are available for U.S. or Canadian residents
- The insurance policy covers you for 30 days, beyond which an additional per-day fee is charged
- 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
If you have any questions about trip cancellation or Cancel For Any Reason Insurance, visit our extensive knowledge center to learn more or reach out to our award-winning Customer Success Team for help.
