Travelling? Protect Yourself with Trip Cancellation and Interruption Insurance (2024)

FAQs

What is considered a covered reason for trip cancellation? ›

The most common covered reason is unforeseen illness, injury, or death of the traveler, a traveling companion, or a non-traveling family member. Other common covered reasons include terrorism, inclement weather, or a natural disaster, among others. Not being able to travel as planned is a major concern among travelers.

As long as the reason for cancellation is covered under your policy, you can submit a claim for reimbursem*nt up to a certain amount. Some providers offer reimbursem*nt of over 100% of your covered trip expenses, but the amount will depend on your plan choice.

While trip cancellation insurance can help reimburse you in the event you have to cancel your trip, it won't cover every possible problem. Before you purchase a policy it's important to understand what it does and doesn't cover.

Some examples of covered reasons could be: Sickness, injury, death, or quarantine of a member of your travel party. A delay that causes you to miss or interrupt any part of your covered trip due to weather, mechanical reasons, or travel advisory.

The unexpected death, illness, or injury of you and/or a traveling companion that deems you unfit to travel, by order of a licensed physician. The hospitalization or death of a non-traveling family member.

If you have trip interruption insurance, you will be reimbursed for the unused, prepaid, nonrefundable hotel stay, your original return flight, the cost of new airplane tickets to return home early and additional transportation expenses such as a taxi to the airport and from your return airport home.

Claims due to known, foreseeable, or expected events, epidemics, government prohibitions, warnings, or travel advisories or fear of travel are generally not covered (coverage can vary by state.)

You can usually claim back the cost of your tickets to travel, plus accommodation for the time you should have been on holiday. So, if you were unable to travel at all, you can claim back the entire cost of your portion of the holiday, less the excess on your policy, up to a certain amount.

Trip cancellation is a standard inclusion on most comprehensive travel insurance policies. It provides up to a full refund of your prepaid, nonrefundable costs if you need to cancel a trip for a specific, unforeseen covered reason.

Travel protection provides a more basic form of coverage for tourists. It tends to be significantly cheaper but usually only covers trip cancellations. On the other hand, travel insurance offers more comprehensive coverage, often including medical emergency evacuation, baggage delays and flight cancellations.

What are the disadvantages of travel insurance? ›

Cost: Travel insurance will add to the overall cost of your trip. Some may choose to forgo it to save money, especially on shorter or less expensive trips. Exclusions and Limitations: Policies may have various exclusions and limitations, so it's essential to read the fine print.

A number of credit cards provide various types of travel insurance (including trip cancellation, trip interruption and car rental loss and damage insurance) when you use your card to pay for flights, rental cars and other travel expenses.

Policies differ between providers, but cancellation cover usually includes: An injury or illness that prevents you from travelling. A fire or flood at your home.

It covers unavoidable trip cancellations due to sudden and unpredictable events, including terrorism, natural calamities, and serious injury or sudden sickness requiring minimum three days' hospitalisation of the insured person, his spouse, parent or child, who are also booked to travel with the insured person.

Trip Interruption: Reimburses (up to the total trip cost) unused hotel arrangements plus additional transportation costs such as a new airline ticket if you can't travel due to circ*mstances such as illness or injury to you, a family member, or traveling companion, jury duty, or a traffic accident on the way to the ...

CFAR coverage typically reimburses up to 75% of your nonrefundable trip costs when you cancel a trip. But you have to cancel at least 48 hours before your scheduled departure if you hope to file a successful CFAR claim.