Nowadays, most travelers will obtain travel insurance before they go on a vacation, so that they can get compensation for expenses that are incurred because of unexpected situations, such as illnesses, accidents, theft, and lost luggage. While a travel insurance policy provides security for travelers, it will not bring any benefit if nothing unfortunate happens during a trip. Some travelers try to cancel their policies during their vacations, because they think that the places that they are visiting are safe enough, and they do not need any insurance coverage. Travelers who plan to cut short their vacations may also want to get a refund from their insurance providers.
Travel insurance providers do not allow insureds to cancel their travel insurance policies during travel, because the policies will be in effect the moment the vacations begin. Usually, they offer a “free-look period” of 10 to 15 days for both annual trip travel insurance and single trip travel insurance policies with more than 30 days of coverage. This means that policyholders can cancel their policies within 10 to 15 days of the time of purchase, provided that their travels have not commenced. Travelers may be given a full refund if no claims have been made during the “free look period”. Those who purchased single trip policies that last for less than 30 days may not be able to cancel their policies.
The “free look period” gives you time to think things over after they have purchased their policies. However, all travelers should read their policies thoroughly, especially the fine print, because they may contain information about policy cancellation, administrative fees, duration of “free look period”, and other important details. If they are not satisfied with certain terms and they wish to get policies from other insurance providers, they can ask for a refund of the premiums that they have paid. In most cases, travelers will receive a full refund, minus a small administration fee that usually amounts to a few dollars. Some insurance companies also allow policy cancellation between the “free look period” and the renewal date, but they may charge a non-refundable fee to cover lost commission that results from the cancellation. Rules for policy cancellation vary from one insurance provider to another, and travelers who wish to cancel their policies should seek advice from their insurance companies. Another way to get a refund for a travel insurance policy is to purchase coverage for trip cancellation. With this coverage, trip takers will get back the full amount that they have paid if they decide to cancel their trips. No matter what the situation, it is important that all policyholders familiarize themselves with their travel insurance policy in order to best understand the terms, conditions, and coverage that it associated with their plan. Insurance companies, both travel and standard, expect that all policyholders are reviewing the terms and conditions of their policy; for the best results, review all information provided by the insurance company and contact your insurance provider with any questions.