Summary: The Covered Reasons for trip cancellation are a specific list of risks that could cause your trip to be cancelled. These covered reasons are listed in your travel insurance policy certificate.
The only type of plan that will cover cancellation for Coronavirus-related fears would be a Cancel For Any Reason plan. Standard trip insurance does not provide coverage for trip cancellations due to coronavirus. Read more about cancel for any reason coverage.
Why travelers like trip cancellation coverage
The most popular reason that travelers purchase travel insurance is to have trip cancellation coverage. And because travel insurance cannot cover “everything”, you need to know the covered reasons for trip cancellation. A covered reason means that the insurance plan will cover your trip cost if your trip is cancelled for a valid reason covered by the policy.
Here’s the very common fear...
You have reserved your trip. Maybe it’s a cruise with a lot of pre-paid costs and a terrible cancellation policy.
Or, maybe you booked an African safari complete with airfare, tours, hotels, and guides.
But what happens if your 12-year old gets the flu right before you leave? Or your husband slips and breaks his leg?
Will you get your money back if you need to cancel last minute?
Trip cancellation coverage reimburses 100% of your pre-paid, non refundable travel expenses if you have to cancel your trip for a covered reason.
Bonus: The covered reasons for a trip cancellation are also the covered reasons for trip interruptions.
What is a covered reason for trip cancellation?
A covered reason is a valid reason listed in the travel insurance policy for canceling or interrupting your trip.
Travel insurance plans cover you for the risks listed in the description of coverage. If it’s not specifically listed, or if it is listed in the exclusions list, then your trip’s cancellation will not be covered.
Every plan has something that spells out the details: usually called a Certificate, Plan Document, or a similar name.
Here’s an example of the covered reasons from a travel plan called RoundTrip by Seven Corners:
As you can see, the policy clearly defines what is a covered reasons, including a list of ‘other covered reasons’ like: quarantine, jury duty, traffic accidents, and more.
What are the typical covered reasons for trip cancellation?
Most, but not all, comprehensive trip insurance plans have the following as covered reasons for trip cancellation:
- Injury or illness of insured, travel companion, family member, or business partner
- Hurricane or natural disaster strikes destination
- Bankruptcy or financial default of travel company
- Terrorism or mandatory evacuation at destination
- Death or hospitalization of destination host
- Home or business damaged, vandalized, or burglarized
- Jury duty, a required court appearance, or military redeployment
- Required to work, terminated, or transferred
- Victim of felonious assault prior to trip
- Traffic accident prior to trip
- Theft of passport or visa prior to trip
- School year extension
- Legal separation or divorce
- Loss of accommodations abroad due to an illness or death of host family or friends
- and more
Of course, it’s important to note that travel insurance plans vary in their coverage. You will have to check your plan for the specific list of covered reasons.
If you have to cancel your trip, the situation causing you to cancel must qualify as a covered reason for trip cancellation to apply. Essentially, you won’t get a check from the travel insurance company to reimburse your trip costs unless the reason you’re cancelling is one of the covered reasons for trip cancellation according to the policy you purchased. You have to carefully review and understand the plan’s description of coverage.
How to get coverage for any reason
Alternatively, travelers can consider purchasing optional ‘Cancel for any reason’ coverage.
This coverage lets you cancel for any reason and receive reimbursement.
It costs more for this upgrade, usually about 50% of the base cost, but many travelers want the peace of mind it provides (especially when the trip is expensive, like a bucket-list Mediterranean cruise).
For example: There are no travel insurance plans that allow you to cancel your trip because you’re worried about civil unrest or political upheaval. If this is a concern on your trip (and in some parts of the world, it’s a valid concern), ‘cancel for any reason’ coverage can help you get at least a portion (usually 75%) of your travel investment back.
How to buy Cancel For Any Reason insurance
Time needed: 10 minutes.
- Visit the link below to our comparison tool
Use our Comparison Tool Here to get started, or click any of the orange Get a Quote buttons.
- Enter your trip details
Enter your trip information on this screen to start your travel insurance search. The main screen has areas to enter your trip information, including traveler ages, trip dates, trip cost, deposit date, destination, and residency.
- When you are finished click the “Search Now” button
On the nest screen, you will see all the plans available to you.
- Filter for plans with Cancel For Any Reason
Check the Cancel For Any Reason filter on the left side to see only plans with this coverage.
- Compare available plans
You can select several plans and compare them side-by-side to see the other coverages.
- Time-saving Tip: Email yourself the quotes for later
If you’re still shopping around, make it easier to continue and send the quote to yourself by email. The email will have all the quotes, with links to get back into this page and finish.
- Complete purchase
When you have selected a plan, click the Buy Now button and complete the information. You will receive an email confirmation immediately.