A recent news article noted a rise in complaints about travel insurance and stated that most complaints and disputes over trip cancellations occur because travelers do not understand what is covered by their policies.
Recent Trip Cancellation Claim Denial Examples
A client purchased coverage for an airline ticket to a wedding, but the bride canceled the wedding. The insured was surprised to find that the coverage she purchased did not reimburse her for the airline ticket because the reason for the cancellation was not specifically listed as a covered reason.
A couple purchased travel insurance for a trip to South America and then canceled after a magnitude 8.8 earthquake hit Chile. The insurance company rejected their claim to cancel their trip because the cancellation was not made by the airline. In addition, the couple’s trip wasn’t for a couple of months so they would not be directly affected by the earthquake.
Purchasing a ‘cancel for any reason’ upgrade would likely have helped both of these clients.
Understanding Trip Cancellation Policies
The key to understanding trip cancellation policies is this: if a travel insurance plan does not list the situation as a covered reason for cancellation, then the cancellation is not covered. So, it’s important to review your plan certificate carefully and use the free review period to ask questions so you understand your trip cancellation limits.
If you’re concerned about having to cancel your trip, consider choosing a policy with the ‘cancel for any reason’ benefit or purchasing it as an upgrade. See more details about trip cancellation coverage and a complete list of travel insurance plans that provide ‘cancel for any reason’ coverage.
