Trip cancellation insurance provides coverage for financial losses due to unexpected travel related incidents. In the case that you have to cancel a trip or end your trip early, trip cancellation insurance reimburses you for such non-refundable travel expenses. Trip cancellation insurance will even reimburse expenses such as last minute hotel accommodations in the event of trip delay or personal necessities in the event of baggage loss or delay. In short, these insurances take the stress out of traveling when mishaps occur.
Coverages such as trip cancellation, trip interruption, trip delay, and baggage loss are included in most trip insurance policies. Trip cancellation insurance usually only reimburses expenses incurred from unforeseen events such as illness or death of the insured or a family member and financial default of the airline or cruise, among many other reasons depending on the policy.
Unlike travel medical insurance, trip insurance only provides limited medical protection such as emergency medical evacuation and repatriation, but some policies may offer a medical coverage upgrade for an additional cost.