Protect your travel plans with trip cancellation and interruption insurance
Explore the benefits of trip cancellation and interruption insurance to protect your travel plans against unexpected events – and secure affordable coverage with us today.
let's get startedWhat is trip cancellation and interruption insurance?
Matt Hands, VP, Insurance
What is trip cancellation insurance?
Trip cancellation insurance is a type of travel insurance that provides reimbursement for prepaid, forfeited, and non-refundable costs if you are unable to take your trip due to an unforeseeable event. This coverage protects your investment up to the time and date of your departure, helping to ensure you don't lose your financial outlay. Typically offered as an optional add-on to a base travel insurance policy, some insurers also offer it as a standalone policy. Additionally, you may have the option to purchase enhanced coverage, such as “cancel for any reason” insurance, which offers broader protection.
What is trip interruption insurance?
Trip interruption insurance is typically included as a component of a comprehensive travel insurance policy. This coverage steps in if your trip is unexpectedly cut short due to unforeseen events after your departure. Alongside trip interruption, comprehensive policies often include trip cancellation coverage, medical expense coverage, and protection for other travel-related costs. This insurance ensures you are reimbursed for unused portions of your trip and additional expenses incurred to return home or continue your travel plans.
What does trip cancellation and interruption insurance cover?
Trip cancellation insurance provides coverage for a variety of problems that might force you to cancel your trip before departure. Commonly covered issues include:
- Serious injury or unforeseen medical conditions that make you or your travel companion unfit for travel (as determined by a licensed physician)
- Death of you, your travelling companion, or a non-travelling family member
- Strikes or severe weather preventing travel services from operating
- Unforeseen natural disasters at home or your destination making them uninhabitable
- Legal obligations such as jury duty, court orders, or subpoenas
Some trip cancellation policies also include benefits for trip delay or trip interruption. The trip delay benefit can cover expenses for short-term delays, including meals, accommodations, and transportation. The trip interruption benefit helps cover costs if your trip is cut short due to a covered reason.
It’s essential to review the specific reasons covered by your policy and understand the definitions of terms like "immediate family member" and "family member," as these can vary between policies. This careful review helps avoid surprises and ensures you fully understand your coverage.
What’s not covered by trip cancellation and interruption insurance?
Trip cancellation insurance does not cover every possible issue. Typically, it excludes problems arising from foreseeable events. A foreseeable event is something that was known or expected before it occurred. In other words, if you’re buying a policy with a specific situation or expected problem in mind, it’s likely considered a foreseeable event and may not be covered.
For instance, if you purchase trip cancellation insurance for a vacation to Cabo San Lucas while a hurricane is approaching, coverage may not be provided, depending on the policy.
What’s not covered by trip cancellation insurance?
What’s not covered by trip interruption insurance?
Why do you need trip cancellation and interruption insurance?
Even the most meticulously planned trip can encounter hiccups. Whether it's a sudden illness, a natural disaster, or an unexpected work commitment, having insurance ensures that you're not left bearing the financial burden. Here are some key reasons to consider this coverage:
Unforeseen illness or injury
If you or a family member falls ill or gets injured before or during your trip, insurance can cover non-refundable expenses.
Natural disasters
Hurricanes, earthquakes, and other natural disasters can disrupt travel plans. Insurance can reimburse you for cancellations or interruptions caused by these events.
Work-related issues
Job loss or sudden work obligations can force you to change your plans. Trip insurance can help cover the costs.
Travel supplier issues
If your airline, cruise line, or tour operator goes out of business, insurance can protect your investment.
How do I get trip cancellation and interruption insurance?
Obtaining trip cancellation and interruption insurance is a straightforward process. Here’s a step-by-step guide to help you secure the coverage you need:
By following these steps, you can secure the right trip cancellation and interruption insurance to protect your travel investment and enjoy your trip with peace of mind.
- Assess your needs
Begin by evaluating your travel plans and potential risks. Consider factors such as the total cost of your trip, potential reasons for cancellation or interruption, and any pre-existing medical conditions.
- Research insurance providers
Look into various insurance providers to compare their coverage options, terms, and customer reviews. Many reputable companies offer trip cancellation and interruption insurance.
- Choose a policy
Select a policy that aligns with your needs. Policies can range from basic coverage to more comprehensive plans that include additional benefits like "cancel for any reason" options. Ensure that the policy covers all potential risks relevant to your trip.
- Get a quote
Request quotes from different insurers to compare costs. You can often get quotes online by entering details about your trip, including travel dates, destinations, and the total cost of your trip.
- Review the policy details
Carefully read the policy details, including coverage limits, exclusions, and the claims process. Make sure you understand what is and isn’t covered before making a purchase.
- Purchase the insurance
Once you’ve selected a policy, you can purchase it directly from the insurer’s website, through a travel agency, or by contacting the insurance provider. It’s best to purchase insurance as soon as you book your trip to ensure maximum coverage.
- Keep documentation
After purchasing, keep a copy of your policy documents, including your policy number and contact information for the insurer. Store these in a safe place and have them readily accessible during your trip.
- File a claim if needed
If you need to cancel or interrupt your trip, follow the insurer’s claims process. This usually involves submitting a claim form along with supporting documentation, such as medical records or proof of interruption.
How much does trip cancellation and interruption insurance cost?
The cost of trip cancellation and interruption insurance can vary based on several factors. Here’s what you need to know about the pricing:
The average cost of trip cancellation and interruption insurance
On average, the cost of trip cancellation and interruption insurance ranges from 4% to 10% of the total trip cost. Here are some examples to give you a general idea:
- For a $5,000 Trip: Expect to pay between $200 and $500 for insurance.
- For a $10,000 Trip: The cost might range from $400 to $1,000.
How to get the best value for trip cancellation and interruption insurance
- Compare multiple quotes: Shop around and compare quotes from different insurance providers to find the best coverage at a competitive price.
- Consider your needs: Choose a policy that offers the right balance of coverage and cost based on your travel plans and risk tolerance.
- Read the fine print: Ensure you understand what’s covered and any exclusions or limitations. Sometimes paying a bit more for comprehensive coverage can be worthwhile for peace of mind.
By understanding the factors that influence the cost and comparing options, you can find a policy that fits your budget and provides the protection you need for your trip.