What Does Trip Cancellation Cover?
Trip Insurance actually offers more than its name might suggest. This is far from being a policy that solely provides cancellation protection coverage for your trip costs and travel expenses. In fact, when you compare what it does cover, these policies have a very affordable premium. Additionally, one of the biggest benefits of travel cancellation products is the peace of mind it provides that you will be covered if you can’t travel.
Insurance to Cover the Cost of your Trip
When planning a vacation we always assume that we will be healthy enough to travel, though unfortunately unforeseen circumstances can arise. Trip cancellation insurance covers you in the event that you have an emergency illness or accident, but it also covers you if it is a family member, business partner, or travel companion who becomes sick or has an accident. Even if the person was not due to travel with you, you could still be covered if a business partner becomes sick and hence you cannot take the time off work. You may also be called for jury duty which would prevent you from being able to travel. There may be terrorist activity at your destination and you are told not to travel. All of these are valid reasons and all are covered under a trip can plan.
Do I Need Trip Cancellation Insurance Coverage?
Benefits of Coverage
These policies provide protection in the event that 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 your costs back that you have already paid – this includes, 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!
- and much more…
When to Buy Travel Cancellation Coverage
We typically recommend Trip Cancellation products to customers who have purchased more expensive trips far before their departure, ideally at the time of their initial trip deposit. Your 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 which 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 plans will reimburse your travel expenses for ‘covered reasons”. If you cancel your trip for any of these reasons, you can file a claim and request a refund of your non-reimbursable expenses. Each provider may have a different list of what is covered as well as any exclusions. Here are some of the more typical reasons where you cancel your trip and are eligible for a refund. Flight cancellation is included as part of most plans as long as you include 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 protection will also come with specific exclusions, things that are not covered if you decide to cancel your trip. First and foremost, with most plans, you will have to meet the criteria listed above in order to get reimbursed by your travel cancellation plan. You will not be covered if file a claim and the reason for canceling is not a valid one as detailed in the policy terms and conditions. For example, if you can’t travel because a friend or a family member has a baby and you want to stay to be with them. You can’t file a claim to be reimbursed simply because you got a new job and your boss wants you to start before your travel starts. In general, you will only be reimbursed if you meet the specific acceptable reasons detailed in your plan. Other things, like rental care damage, may not be covered at all while ski lift passes maybe. Review your policy to 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 – mostly for emergency purposes. However, it is good to have for the rare situation 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 plans (less than 1 year) or international health coverage (a year or longer) is recommended when you are traveling outside of your home country for extended periods of time and/or you have additional medical needs. Travel medical plans are primarily medical plans to cover emergency medical expenses that might not be covered by 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 policies primarily protect the investment you have made for your trip expenses with some additional emergency medical benefits added on.
Our Recommended Trip Insurance Plans
Best Trip Cancellation Insurance for US citizens
The following plans are good options for US citizens traveling abroad. Both provide a variety of levels of cover, emergency medical, and trip insurance for travel abroad.
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?
As mentioned previously, travel insurance does not only protect you against not being able to travel. The plans we offer at International Citizens Insurance cover you for a number of other eventualities as well. An example policy might also include travel delay up to a maximum of $1,000 (this feature covers you for a lost or stolen passport, travel documents, or money, natural disaster, and medical quarantine, among others), loss of baggage and personal possessions up to $2,000, and baggage delay for $1,000. And, although your cover is not comprehensive 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 emergency medical evacuation and repatriation might be covered 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. Many people think they have a Cancel for Any Reason plan, which allows you to do just that. In actuality, they will only be covered if they cancel for an approved reason, which may include one 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 and you do not have the right coverage. Consider your options and purchase the right coverage for your specific needs.
Is Trip Insurance Worth It?
Trip insurance is ideal for people who are traveling abroad or within their home country because it not only protects your travel expenses, it gets you home in the event of an emergency. However, while there are some medical expenses covered this plan is not recommended for anyone traveling internationally because the limits of coverage are too low. If you are planning an international trip please consider a travel medical plan as this provides far more extensive coverage for medical expenses in addition to covering such things as trip cancellation and trip interruption. Talk to one of our customer support team if you are still unsure as to which plan would be best for you. Need help with international coverage? Please do not hesitate to call or contact our customer support team who will be happy to assist you to pick a plan and provide 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).
Also Consider: IHI BUPA Travel Insurance Plan | Free Quote / Apply (Great for Non-US Citizens)
Best Products for International Travelers
As an international agency, we get inquiries from all around the world. For the majority of clients, we have great plans and can easily help them with an existing product. Increasingly, we are getting inquiries from non-US citizens who are specifically looking for trip cancellation plans. These customers often find it difficult to find 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 included 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 Cancelation Insurance?
Some people consider travel cancelation coverage a waste of money if everything goes smoothly, which most times it does. But if you have saved for a long time for a vacation of a lifetime and that money is considered non-refundable, or if you have loved ones back home who are elderly and may need you at the drop of a hat, or if you just like to be prepared in case of an emergency (medical or otherwise) then it 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 important it is to protect your investment (a lot can happen in the weeks or months between booking a trip and departing for it).
It is important to know that once you have departed (your start date) you cannot purchase coverage. And while it is possible to purchase coverage right up until the start date of your travels, there are insurance companies who require a policy be purchased within seven days of paying for the trip or no later than 48 hours in advance of trip departure.
Trip cancelation plans are best purchased at the same time 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 cancelation products like these are designed to protect you against the worst-case scenarios associated with overseas travel. When offered this kind of insurance when paying for a vacation, don’t think of it as spending more money, think of it as protecting the money you have already spent.
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
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