What Does Trip Cancellation Cover?
Trip cancellation insurance offers more than its name might suggest. These plans are far from being a policy that solely provides trip cancellation protection covering travel expenses. When you study what it covers, you will find that travel cancellation policies have a very affordable premium.
Additionally, one of the most significant benefits of travel cancellation products is the peace of mind it provides. Knowing that you can recover expenses if you cannot travel is a great relief to your finances.
Insurance to Cover the Cost of your Trip
When planning a vacation, you often assume that you will be healthy enough to travel. However, unforeseen circumstances might arise, making it impossible for you to proceed with the trip.
Trip cancellation insurance covers you if you have an emergency illness or accident. It can also protect you if a family member, business partner, or travel companion becomes sick or has an accident. If the person traveling with you ultimately cannot go, your trip cancellation insurance plan will still cover you.
Other potential reasons for delaying your trip are jury duty, terrorist activities at your destination, and numerous safety reasons, such as a malaria outbreak.
All of these scenarios are valid reasons and covered under a trip cancellation plan.
Do I Need Trip Cancellation Insurance Coverage?
Benefits of Coverage
Travel cancellation insurance policies protect you if you need to cancel your trip and cannot go. If this happens and you need to cancel for one of the covered reasons, you can get the costs back for your trip.
Below is a list of the expenses and amounts you may recover with your trip cancellation insurance. Benefit amounts may vary, depending on the plan you choose:
- Up to $50,000 for trip cancellation
- Up to $1,000 for travel delay
- Up to $2,000 for lost baggage
- Medical Expenses and Repatriation
- Medical Evacuation and Repatriation
- Cancel For Any Reason upgrade!
When to Buy Travel Cancellation Coverage
We typically recommend Trip Cancellation products if you have purchased more expensive trips far before your departure. Ideally, the best time to buy flight cancellation insurance is at the time of your initial trip deposit. The trip cost and the length of time before traveling add the most risk, so it is worth paying for coverage.
It might not make sense to buy the policy for an inexpensive vacation that leaves in a couple of days. The earlier you buy the plan, the longer you have coverage and, therefore, the more value you get for the policy.
When am I Covered for the Cost of My Trip?
Most trip cancellation insurance plans will reimburse your travel expenses if they fall within the policy’s coverage. If you cancel your trip for any valid reason, you can file a claim and request a refund on your non-reimbursable expenses.
Each provider may have a different list of what is covered and what is not. Here are some of the more typical reasons you cancel your trip and can still be eligible for a refund. Flight cancellation is included as part of most plans as long as you have the cost of your flights when buying coverage.
Covered Reasons for Trip Cancellation
- Mandatory evacuation at your destination due to a hurricane or other natural disasters
- Primary residence or destination accommodations uninhabitable due to natural or man-made disaster
- Sickness, injury, or death of you, your traveling companion, family member, or business partner
- Death or hospitalization of your destination host
- Adverse weather, natural disasters, or terrorist attacks, causing complete cessation of travel services
- Strike causing complete cessation of your common carrier’s services (for at least 12 consecutive hours)
- You or your travel companion are hijacked, quarantined, required to serve on a jury, subpoenaed, or required to appear as a witness in a legal action
- Your job termination or layoff (must have been employed there for 3 consecutive years)
- Terrorist attack within 30 days of your departure
- Government authorities prohibit the activities you planned to do at your destination
- Your job transfer requires the relocation of your principal residence
- You or your traveling companion are a victim of a felonious assault within 10 days of departure
- Vandalism or burglary of your principal residence within 10 days of departure
- Traffic accident en route to departure
- You, your traveling companion, or family member, who are military personnel, are called to emergency duty for a natural disaster (not war), or military duty within 30 days of departure
- You are active military personnel and have your leave revoked or are redeployed
- You are unable to participate in scheduled hunting, fishing, or sports expedition due to a delay or your sports equipment for 12 hours or more
Exclusions in Travel Cancellation Coverage
Most types of travel cancellation insurance also come with specific exclusions. Some situations are not covered if you decide to cancel your trip.
With most plans, you will have to meet the criteria listed above to get reimbursed by your trip cancellation plan. You will not be covered if you file a claim and the reason for canceling is not a valid one, as detailed in the policy terms and conditions.
For example, your reason for not proceeding with your trip is because a friend or a family member had a baby, and you decided to stay with them. Canceling your trip for this will not get you covered. Similarly, you cannot file a claim for reimbursement because you got a new job, and your boss wants you to start before your travel starts.
In general, you will receive reimbursement if you meet specific reasons detailed in your travel cancellation insurance. Things like rental car damage may not be covered, while ski lift passes might be reimbursable. Coverage and benefits depend on the policy wording of the plan, so you must review the fine print and be informed on what you are buying.
Do I Need a Trip Cancellation Plan with Emergency Medical Coverage?
All of the plans offered here also include a medical benefit that will cover your costs in case of a medical emergency, accident, sickness, or other covered medical care. The medical benefit provided is basic – primarily for emergency purposes only. However, it is good to have for the rare and unexpected situations when you get sick or injured while traveling.
Trip Insurance Vs. International Medical Plans
Often, you may be more concerned about covering medical expenses while traveling. In that case, a more comprehensive travel medical plan is advisable if you plan to travel abroad for less than one year. Otherwise, international health insurance is highly recommended if you plan to travel outside your home country for a year or extended periods. The latter is also the better option if you have additional medical needs that must be covered.
Travel medical plans are primarily medical plans designed to cover emergency medical expenses that might not be included in your existing policy. International health plans are even more comprehensive but often do not include some benefits of a travel medical plan (i.e., trip interruption or lost luggage benefits). Trip cancellation plans primarily insure the investment you have made for your trip expenses, with some additional emergency medical benefits added.
Our Recommended Trip Insurance Plans
Best Trip Cancellation Insurance for US Citizens
The following travel cancellation plans are good options for US citizens traveling abroad. Both provide various levels of cover, emergency medical benefits, and trip insurance for overseas travel.
iTravelInsured Trip Cancellation Insurance
- Three levels of trip protection for U.S. residents traveling abroad.
- Medical cover, trip cancelation and medical evacuation included.
- Optional Cancel for Any Reason coverage available (LX Plan).
RoundTrip Trip Cancellation Insurance
- Comprehensive trip protection for U.S. residents traveling abroad.
- Optional rental car collision coverage available.
- Optional Cancel for Any Reason coverage available (if eligible).
For all other nationalities, you can purchase one of the following plans.
RoundTrip International Cancellation Plan (For non-US Citizens)
RoundTrip International
- Trip protection for non-U.S. residents traveling up to 30 days.
- $100,000 personal liability benefit.
- 24/7 multilingual travel assistance.
Also, consider IHI Bupa: Learn More | Free Quote / Apply (Great for Non-US Citizens)
What Else is Covered with a Trip Insurance Plan?
Travel insurance does not only protect you against being unable to travel; it covers you for several other eventualities as well.
A policy may include travel delay up to a maximum of $1,000. This feature covers you for lost or stolen passport, travel documents, or money. It also protects you from natural disasters and medical quarantine. Some plans can also cover the cost of lost or stolen baggage up to $2,000 and baggage delay for $1,000.
Although the coverage is not as comprehensive as travel medical insurance, some emergency medical expenses are covered under the trip cancellation policy. Depending on the policy, emergency medical and dental expenses might be covered up to $50,000, while the plan might cover emergency medical evacuation and repatriation up to $20,000. There is also a $3,000 limit for emergency reunion or return of mortal remains and up to $100,000 for common carrier accidental death and dismemberment.
Be sure to confirm what is covered in your trip cancellation plan. You may think that you have a Cancel for Any Reason plan, which allows you to do just that. But frequently, you will only be covered if you cancel for an approved reason, which may include any of the following:
- Sometimes the weather or a natural disaster makes travel impossible or damages your own home
- Your passport or visa has been lost or stolen
- Some scheduling conflicts allowed include jury duty, court summons, or school year extensions
- Your, or a travel companion’s, injury or illness and sometimes to a family member or business partner
- If you, or your traveling companion, is in a traffic accident on your way to the airport or trip
- If your home, your business, or your destination accommodations are vandalized, burglarized, or damaged through criminal activity
- A terrorist event that occurs at your destination and results in mandatory evacuations
- The bankruptcy of a pre-paid travel supplier causing the cessation of operations of that supplier
- You, or your traveling companion, are a victim of a felonious assault prior to your scheduled departure
- You or your traveling companion are terminated by your employer, required to transfer to a new work location, or in the military, and deployed to help with disaster relief.
- The illness, hospitalization, or death of your destination host
- Your travel is disrupted or canceled due to a labor strike
Also, be aware of what is not covered. If there is a new development in your life and you are no longer interested in going abroad, you will not be covered if you cancel your trip. Consider your options and purchase the right coverage for your specific needs.
We can guide you in selecting the best travel cancellation insurance suited to your needs. Just contact us on any of our communication channels, and we will be glad to help you.
Is Trip Insurance Worth It?
Trip insurance is ideal if you are traveling abroad or within your home country. Not only does it protect your travel expenses, but it can also get you home to safety in the event of an emergency. However, while some medical expenses are covered in trip insurance plans, they are not recommended for anyone traveling internationally for prolonged periods because the limits of coverage are too low.
If you are planning an extended international trip, please consider a travel medical plan as this provides far more extensive coverage for medical expenses. It also includes coverage on things such as trip cancellation and trip interruption.
Talk to one of our customer support team if you are still unsure which plan would be best for you. Need help with international coverage? Please do not hesitate to call or contact our customer support team. We will be happy to assist you in picking a plan and providing your travel plan quotes.
Best Trip Insurance Products
RoundTrip International
- Trip protection for non-U.S. residents traveling up to 30 days.
- $100,000 personal liability benefit.
- 24/7 multilingual travel assistance.
RoundTrip Trip Cancellation Insurance
- Comprehensive trip protection for U.S. residents traveling abroad.
- Optional rental car collision coverage available.
- Optional Cancel for Any Reason coverage available (if eligible).
Best Products for International Travelers
As an international agency, we get inquiries from people all around the world. For most clients, we have great plans and can quickly help them with an existing product. Increasingly, we are getting inquiries from non-US citizens who are explicitly looking for trip cancellation plans. These customers often find it challenging to get a plan that will cover their international adventure. For these customers, we have a solution!
Trip Insurance for International Citizens Outside of the USA
For non-US citizens, the options are limited. Our recommended options include Round Trip International and IHI BUPA Travel Plan. They can't cover all nationalities but they do have options for most.
RoundTrip International
- Trip protection for non-U.S. residents traveling up to 30 days.
- $100,000 personal liability benefit.
- 24/7 multilingual travel assistance.
IHI Bupa Travel Insurance provides International travel insurance with emergency medical benefits - they are a great option. Generate a Quote
Why do People Forgo Trip Cancellation Insurance?
Some people consider travel cancellation coverage a waste of money. But if you like to be prepared in case of an emergency, medical or otherwise, then investing in a trip cancellation insurance is money well spent.
Investing in a quality policy is money spent to protect your investment! And the further ahead you book your adventure, the more critical it is to protect your investment since a lot can happen in the weeks or months between booking a trip and departing for it.
It is essential to know that you cannot purchase coverage once you have departed (your plan start date). While it is possible to buy coverage right up until the start date of your travels, there are insurance companies that require you to purchase a policy within seven days of paying for the trip or no later than 48 hours before the trip departure.
Trip cancellation plans are best purchased when you pay your initial deposit or as close to the purchasing date as possible. If you buy coverage from a website at the last minute and then try to file claims, you risk the chance that the insurance company will closely scrutinize your case.
Travel cancellation products like these are designed to protect you against the worst-case scenarios associated with overseas travel. When offered this kind of insurance for your vacation, do not think of spending more money. Instead, think of it as protecting the money you have already paid and got additional safeguards for unexpected circumstances.
Best Trip Cancellation Providers
iTravelInsured Trip Cancellation Insurance
- Three levels of trip protection for U.S. residents traveling abroad.
- Medical cover, trip cancelation and medical evacuation included.
- Optional Cancel for Any Reason coverage available (LX Plan).
RoundTrip International
- Trip protection for non-U.S. residents traveling up to 30 days.
- $100,000 personal liability benefit.
- 24/7 multilingual travel assistance.
RoundTrip Trip Cancellation Insurance
- Comprehensive trip protection for U.S. residents traveling abroad.
- Optional rental car collision coverage available.
- Optional Cancel for Any Reason coverage available (if eligible).
For Travel Medical Plans, Consider:
Atlas Travel Insurance
- COVID-19 coverage outside your home country
- Choose between the basic and more extensive coverage
- Meets Schengen visa insurance requirements
- 24/7 worldwide travel and emergency medical assistance
Geoblue Voyager Plan
- COVID-19 coverage outside your home country
- Great option for US citizens traveling abroad
- For trips up to 6 months for ages up to 84
- May cover pre-existing conditions for medical services
