It depends. Many vacation travelers find the ‘cancel for any reason’ coverage gives them the best protection for their financial investment in situations where their standard cancellation coverage doesn’t provide coverage.
Specifically, ‘Cancel for any reason’ lets you cancel your trip up to two days before departure and receive reimbursement for all or most of your pre-paid nonrefundable trip expenses no matter what the reason for cancelling.
This coverage costs a little more, but if you think you may have to cancel your trip for a reason that is not listed in the covered reasons for trip cancellation, you may find the cost is worth it.
When is ‘Cancel for any reason’ useful?
Let’s discuss a few examples where you might find this coverage a good idea. If you find a travel insurance plan with the right amount of coverage for your trip, but you look at the covered reasons for trip cancellation and the exclusions and notice that you can’t get reimbursement under the standard trip cancellation benefit for:
- travel arrangements canceled by an airline or cruise line
- financial circumstances of the insured, a traveling companion, or a family member
- any government regulation or prohibition
These are just a few examples of trip cancellation exclusions that may be in your plan’s description of coverage.
So, what happens if you book an expensive cruise with a few college buddies and then discover later that your boss’s child is very ill and you will be expected to attend a crucial business meeting in her stead? This particular situation is not covered under standard trip cancellation coverage, and if you are unable to make a change to the business meeting, you could be out several thousands of dollars.
It’s situations like this where travelers appreciate having ‘Cancel for any reason’ on their travel insurance policy.
Important notes about this coverage
- It’s important to note that this coverage typically requires advance purchase within a certain number of days (usually 10-15) of making your initial trip deposit. So, if you’re going to purchase this coverage, get your vacation travel insurance plan purchased quickly.
- This coverage typically must be purchased when you purchase the travel insurance plan; it’s not something that can be added on later.
- Coverage amounts vary from 50%-100% of a traveler’s nonrefundable trip costs, and in some cases, the coverage is subject to a cancellation penalty. See Understanding Cancellation Penalties for more information.
See a full review of ‘Cancel for any reason’ coverage and a list of travel insurance plans that offer this coverage.