Are you a traveler, and do you book expensive trips? Then I suggest you consider trip cancellation insurance. Why you need one and how to get one will be explained as we venture deeper into this article. No one can tell the future except those fortune tellers in movies. Nevertheless, it is not possible to tell what lies ahead, and anything can happen. But it is important that we are prepared for these unexpected events or incidents.
For people who travel a lot and pay a lot to go on trips, what if one day something comes up and, as a result, you have to cancel your trip? It will be very disappointing and inconvenient, right? I know, which is why I recommend you purchase trip cancellation insurance. Besides, it is among the most popular types of travel insurance, and 76% of travel insurance quotes come with trip cancellation benefits.
So, if you purchase trip cancellation insurance, you can get reimbursed in any event that will cause you to cancel your trip. However, this type of insurance will not cover all the problems you encounter, but it goes a long way. Nonetheless, it is important that you examine and go through what trip cancellation insurance covers and what it doesn’t before choosing a policy. This will help you choose the right quote.
What is Trip Cancellation Insurance?
Trip cancellation insurance, also known as trip interruption insurance, is a policy meant for travelers who are worried about protecting the money they spend on planning or booking trips. So, if something unforeseeable comes up and you are unable to go on your trip, your quote will compensate you for the prepaid and non-refundable costs. However, the coverage you get from the time and date of your departure depends on the travel insurance plan you have.
In the meantime, trip interruption insurance is usually sold as an optional coverage to a travel insurance quote. But some insurance providers sell this insurance as a standalone policy. So, if you already have travel insurance, you can purchase trip cancellation insurance separately. However, some trip interruption insurance quotes allow policyholders to buy extra coverage types like “cancel for no reason” travel insurance.
What Does Trip Cancellation Insurance Cover?
Even though the coverage limits and rules differ by insurer and policy type, here are the basic inclusions or coverage options offered by a trip interruption insurance policy:
- Unforeseen natural disasters
- Legal obligations
- Injury or sudden medical condition
- Severe weather
- Death of you or your travel companion
- Complications from pregnancy
- Airport shutdown
- Traffic accident
- Jury duty
What Does It Not Cover?
As mentioned earlier, not all problems you encounter when traveling are covered by your trip interruption insurance policy. For a better understanding, here are a few exclusions that are not covered by this policy type:
- Alcohol or substance use or abuse
- Suicide or self-harm
- Financial default
- Participation in high-risk activities
- Dental treatment
- Normal pregnancy
- Nervous or mental health disorders
However, keep in mind that what is covered and what isn’t depends on the insurance company you are using.
How Much Does Trip Cancellation Insurance Cost?
The average cost of a basic travel insurance policy is between 5% to 10% of your trip costs. Even so, there are certain factors that affect the cost of buying a policy. They are:
- Plan selection
- Trip length
- Trip expenses
And the number of travelers. The more people you add or include in your coverage, the higher your premium.
How to Get Trip Cancellation Insurance
Even if you have an existing travel insurance policy, you do not have to miss out on the trip cancellation insurance benefits. This means that you can purchase it as a standalone policy. But if you are making plans to buy a new travel insurance policy as a newbie, you can find policies that offer trip cancellation coverage. Nonetheless, here is how to get a trip interruption insurance quote:
- First of all, check if your credit card has travel insurance.
- Compare multiple quotes.
- Check company reviews.
- Purchase the plan you would like.
- Examine the plan.
Once you review the plan, the coverage, and the exclusions of the plan, and you are sure that you can work with it, you can proceed to buy a quote.
FAQs
Are there any exclusions to trip cancellation insurance?
Exclusions vary by policy, but common exclusions may include pre-existing medical conditions, changes in travel plans due to personal reasons, and travel advisories issued before the trip was booked.
How do I file a claim for trip interruption insurance?
To file a claim, you typically need to contact your insurance provider as soon as possible and provide documentation, such as medical records or receipts, to support your claim. The process may vary depending on the insurance company and the reason for cancellation.
When should I purchase trip interruption insurance?
It’s best to purchase trip interruption insurance as soon as you book your trip to ensure you’re covered for any unforeseen events that may arise before your departure date.
Is trip interruption insurance the same as trip interruption insurance?
While both types of insurance provide coverage for unexpected events during travel, trip interruption insurance typically covers expenses incurred if you need to cancel your trip before departure, while trip interruption insurance covers expenses if your trip is interrupted or cut short after departure.
Can I cancel my trip for any reason with trip interruption insurance?
Some policies offer “cancel for any reason” coverage, which allows you to cancel your trip for reasons not typically covered by standard trip cancellation insurance. However, this coverage may come with additional costs and restrictions.
Is trip cancellation insurance worth it?
Whether trip cancellation insurance is worth it depends on factors such as the cost of your trip, your personal circumstances, and the likelihood of needing to cancel your trip unexpectedly. It’s essential to carefully review the terms and coverage of the policy before purchasing to ensure it meets your needs.
