The basic trip cancellation coverage of most policies has a list of covered events that will qualify you for reimbursement of non-refundable travel costs if you need to cancel your trip before you depart. The list of covered events is important information to compare when looking for a plan.
Only you can decide if the list is compressive enough for your particular situation. But there are alternatives. If you want or need the ultimate flexibility then a policy that has cancel for any reason coverage is what you want.
Who Might Need this Coverage?
I’m always one for peace of mind when I travel. So I would normally opt for a plan that included cancel for any reason or one where this coverage could be added.
But aside from that, this coverage is good for anyone who has a job that can have last minute demands that have to be taken care of when they happen. The normal trip cancellation coverage will cover some work related events, but these are somewhat restrictive and usually cover such things as bankruptcy, or business interruption events where you are the primary individual responsible. But we all know there are jobs that can have demanding client or customer issues that can get in the way of the best laid plans for that vacation.
You may have family issues that could cause a last minute cancellation of your trip that won’t be covered under the basic trip cancellation converges of most policies. A family friend (not a relative) may become ill. Or you may just want the flexibility to cancel a trip if you need to.
Requirements of Cancel for Any Reason Coverage
There are some very specific requirements that need to be met for you to qualify for cancel for any reason coverage.
- You must purchase the coverage a specified number of days after making you initial trip payment or deposit. This is usually anywhere from 10 to 30 days of payment. It varies by policy.
- You must insure all of your pre-paid and nonrefundable trip costs. This is very important. It must be 100% of these costs or more.
- You must notify your insurance carrier a specified number of days before your scheduled departure of your need to cancel. This is usually 2-3 days before but it varies by policy.
What is the Reimbursement?
Unlike the basic trip cancellation coverage, your reimbursement will not be 100% of your cost. Normally the reimbursement rate will be between 50% and 80% of your covered charges. Your reimbursement will actually be based upon any penalties that might be imposed by the travel supplier.
- Your insured trip costs are $4000.
- If you cancel your trip and are assessed a 50% cancellation fee at the time you cancel, you will receive $2000 dollars from the travel supplier.
- Your trip cancellation insurance, if it reimburses up to 75% of the insured trip cost, will reimburse you $1500.
- You are out only $500 for the trip.
So is it worth it? Well again that depends on your situation and the type of policy you buy. If cancellation for any reason is included as it sometimes is for higher end policies, then obviously it is. If you need to purchase an upgrade to get this benefit, make sure you get comparative quotes and you read and understand the policy coverages and benefit limits before you buy.
Compare Quotes for the Best Value in Travel Insurance
The easiest and best way to make sure you get the most value for your travel insurance dollar is to compare quotes from the leading travel insurance carriers. It’s easy, quick and can save you money. Try it here.