Travel Cancellation Insurance
Travel can be very expensive and many travel products are non-refundable. Travel cancellation insurance coverage can reimburse the cost of your pre-paid trip expenses, but not all travel insurance plans include this coverage. Once you’ve paid your trip deposit (or even the full amount), any number of unexpected reasons can cause you to have to cancel your trip. Canceling your trip can cause you to lose some or all of your prepaid travel expenses, and many travelers find that travel cancellation coverage is well worth the cost.
Examples of Reasons for Canceling a Trip
Travel plans sometimes have to be canceled, and you’re better off safe than sorry when it comes to travel expenses and trip cancellation insurance. Trip cancellations may occur for the following reasons:
- a sudden injury or illness (for you, a family member, or your travel companion)
- common carrier cancellations as a result of inclement weather or labor strikes
- financial insolvency of a common carrier
- unexpected and unavoidable responsibilities at your place of employment
- jury duty
- suddenly being called into active military service
- termination of employment or a transfer of employment to a new city
- travel document theft, such as printed tickets, passport, or visa
- an act of terrorism at your location of departure or destination
- an evacuation is ordered at your home or travel destination
- and others
Rules to Expect with Trip Cancellation Insurance
Some plans include exclusions that define the overall trip amount to be reimbursed. Some plans include trip cancellation as optional coverage and require that the coverage be purchased within a specified number of days after paying the initial trip deposit. Most plans require some type of proof that backs up the reason you are canceling the trip.
Of course, each travel insurance plan is unique and you have to check to be sure trip cancellation coverage is included with the plan you choose.
Making a Trip Cancellation Claim
If you have to make a claim for a canceled trip, you may have to provide proof depending on the type of cancellation, such as providing proof of an injury or illness with a doctor’s note for example. The proof you have to supply will vary depending on your trip insurance plan and the reason for which you are canceling the trip.