Oftentimes, travelers will plan out and book their trips well in advance of their scheduled departure date. Some prefer to have a full itinerary, as well as all of their transportation and lodging arrangements plotted out in advance. Planning ahead like this can help foster peace of mind. Whether the trip is for business or leisure, organizing in advance provides time for travelers to save money, consider how they'll use their time during the trip and plan out what they'll bring along for their travels.
However, no matter how well or how far advance you think through the details, certain events or factors may arise and get in the way of your plans. When these instances happen, its best to be prepared—but your traditional trip cancellation insurance policy can only go so far.
If you have to cancel your trip, how will you recoup your losses when it comes to travel deposits and other items that don't fall under a conventional trip insurance policy?
The solution: "Cancel for Any Reason" Insurance
A "Cancel for Any Reason" policy can offer coverage for the types of situations described above, particularly as its related to reimbursement for refundable trip costs and certain nonrefundable deposits.
A "Cancel for Any Reason" policy builds on the benefits of basic trip cancellation insurance, but these two types of insurance are distinctly different.
Where trip cancellation insurance provides coverage for specific, unforeseen reasons—such as an injury or illness, natural disasters, lost passport or other particular issues, as outlined in the policy—a "Cancel for Any Reason" policy is a bit more flexible.
What does a "Cancel for Any Reason" policy cover?
There are different policies that offer varying levels of coverage. In general, though, a "Cancel for Any Reason" policy is a supplemental option to add to traditional trip insurance coverage, and can help travelers get reimbursed for costs not otherwise covered in their regular cancellation policy. Things like pre-paid trip deposits, transportation or event tickets, lodging and other travel expenses don't have to be lost just because travelers had to cancel their trip for a reason not covered by regular trip cancellation insurance.
Reasons for canceling the trip can vary, and can extend to small personal issues impacting peoples everyday lives, or other, larger-scale issues that prevent transportation or travel.
However, there are a few other factors to be aware of with a "Cancel for Any Reason" policy:
- Travelers must purchase this type of insurance within 15 days of making their first trip payment or deposit.
- Trips must be canceled at least 48 hours ahead of the departure date for policyholders to qualify for reimbursement.
- Travelers must ensure their policy will be enough to cover the nonrefundable deposits of their trip.
- Reimbursement is distributed according to the amount specified in the policy, typically between 50% and 75% of covered costs.
Why do I need a "Cancel for Any Reason" policy?
There are a few key reasons why United States residents shouldn't depart without buying "Cancel for Any Reason" insurance, including:
- Ensure full coverage: There are different kinds of trip and travel insurance that provide coverage for varying events or issues. In this blog, we explain trip delay, trip interruption and trip cancellation coverage, which can support travelers if their departure or return is delayed, if they need to end their trip unexpectedly or if they need to cancel for specific, covered reasons. "Cancel for Any Reason" insurance comes as an optional addition to traditional travel insurance policies, and can expand coverage beyond whats provided by other types of travel and trip insurance.
- Most cancellations happen well ahead of time: According to a study of more than 500,000 travel cancellation requests, researchers found that most cancellations take place well in advance of the departure date—in fact, about 30% of the time, trip cancellations take place 60-90 days ahead of the trip date. "Cancel for Any Reason" insurance comes in handy in just these instances.
- You never know what might occur: It's a smart move to plan ahead, but it's impossible to consider any and every element that might come up. Sometimes, an unforeseen event takes place and demands your presence, no matter if you've had a vacation planned for months. In other instances, you may simply feel too stressed to get away 37% of people cancel their trips due to stress. While these instances aren't usually covered by a regular trip insurance policy, travelers can receive reimbursement for costs they might otherwise lose due to scheduling issues with their "Cancel for Any Reason" insurance.
If you're planning a trip, consider purchasing "Cancel for Any Reason" coverage. To find out more, check out our plans from travel supplier SevenCorners Insurance, and connect with us at VisitorsCoverage today.