Trip Cancellation Insurance
This article will help depict the purpose, coverage and approximate costs of trip cancellation insurance plans.
Not to be confused with travel medical insurance, cancellation policies are designed to specifically cover the cost of your trip with little or no medical coverage. Traditionally offered by most insurance and airline carriers, trip cancellation (also called trip protection) policies can help in an array of situations. While this article is designed to serve as an overview, there are many excellent plans available, so feel free to contact us with any questions you may have.
Tip: Although plans often boast cancellation coverage up to $100,000, be sure to note that they will only pay up to amount that has already been paid for travel accommodations in most cases.
Key Benefits Of These Plans
As long as you choose to cancel your trip for one of the reasons listed in your policy wording, the plan will reimburse your non-refundable travel costs. Some policies, like our Roundtrip plan also include a benefit called “Cancel for Any Reason” which allows you to terminate your insurance for any or no reason at all.
While on your trip, if you learn about the death of a family member or destruction to your family home, the plan will pay to bring you home earlier than planned. These options can also provide benefits for traffic accidents in route to departure, severe weather, natural disasters and terrorist incidents in the country of your destination.
These types of plans always include a range of travel assistance benefits, from concierge services to document assistance.
The most common benefits include:
- Lost passport
- Embassy referral
- Interpreter referral
- Emergency message
- Weather information
- Hotel accommodations
Delays/ Missed Connections
In the event you suffer long-term delays or missed flight connections trip cancellation insurance can be a hassle-free way ensure reimbursement.
Most trip insurance plans have limited emergency health insurance coverage in case you need medical treatment in route to your destination. This benefit will only pay if the illness or injury first occurs during the trip, but will help cover physician, ambulance and prescription expenses.
Tip: If you are looking for a plan that offers traditional hospitalization and doctor visits, we recommend looking at our international travel medical insurance plan, which comes standard with lost luggage and trip interruption.
Lost, Stolen, or Delayed Baggage
As if traveling itself wasn’t stressful enough, losing baggage could quickly turn a great trip into a nightmare. Thankfully, trip cancellation insurance will provide reimbursement for the loss, theft or damage to your luggage.
Oftentimes cancellation policies will offer riders, or supplementary benefits at an additional cost. Examples of typical riders include Flight Accident and Collision Damage, helping to cover the cost if you were to get into an accident while in a car or riding in a plane on your trip.
Since the price of these plans are based on the value of the trip and age of each traveler, premiums can vary greatly. For a trip costing between $3,000 and $4,000, an individual under the age of 34 years old can expect to pay about $110 for a trip cancellation plan. More seasoned travelers between the ages of 56 and 70 will pay about $250 for the same coverage. Keep in mind that if you would like to add additional riders to the policy they do come at an extra cost, but may be worth the extra money, depending on your situation.
Who These Plans are Designed For
Trip cancellation plans are exceptionally useful, even if you don’t intend on cancelling your plan. Above and beyond the listed benefits, these options help offer a piece of mind and work well for frequent travelers, students who may be traveling for the first time, and individuals who may need to make sudden changes to their itinerary. Most plans will only cover trips up to 30 days, so if you need longer-term coverage, a travel medical insurance plan might be a better option for you.
If you are just starting the search for a trip cancellation policy or trying to decide which is best, be sure to review our Roundtrip plan , which comes standard with all of the mentioned benefits and many more. Remember that each trip cancellation insurance plan will have its own set of benefits so it’s always a great idea to speak to a licensed insurance agent before purchase.
If you are still weighing your options, be sure to read the article “Trip Cancellation Insurance or Travel Medical Insurance” for further information and guidance.
Return back to our "Insurance Explained" section for more information and help