Trip cancellation coverage is probably one of the coverages that most people think of when they talk about travel insurance. When you go to plan your trip you usually do it far in advance of your intended departure – especially if it will involve cruises, tours or other complicated or expensive arrangements. And many people start to think what happens if some unforeseen event comes up and we can’t make our trip?
Your own particular situation will have a great deal to do with how probable such events may be. If you’re travelling with children sickness can easily spoil the best planned vacation. Perhaps you have elderly parents or relatives that would need your care if something happens to them. Or, you may have a job that could require your presence just when you planned that weekend getaway. In any case most people want some kind of protection for the money they have invested in their travel plans.
Understand and Compare Trip Cancellation Coverages
When you look at different plans you’ll find they all have their own specific coverages and maximum coverage amounts. That’s why it is so important to look carefully at what is covered and the coverage limits before deciding what the best option is. It all comes down to smart shopping.
When you look at various polices you will see they discuss trip cancellation and trip interruption coverages. Understand the differences. Some of the covered events may seem similar but these are two separate insurance coverages. Trip cancellation coverage provides protection for events that happen before you start your trip. Trip interruption insurance deals with events after you have departed.
What is Covered
When you go to compare insurance plans you need to start by understanding what is covered and what is not. This goes for all types of coverage – not just trip cancellation benefits. We can’t emphasize this enough. NOT ALL PLANS ARE THE SAME. Two things are important in your comparison – what is covered and what is the maximum coverage benefit.
Most standard trip cancellation insurance covers such things as the following:
- A terrorist incident in a city on the itinerary within 30 days of the scheduled arrival.
- Sickness, injury, death or hospitalization of the insured’s host at your destination. A physician’s certification is usually required.
- Financial default of an airline, cruise line, or tour operator provided the default occurs a specified number days following the effective date of the trip insurance.
- The insured’s destination is made uninhabitable by natural disaster, vandalism or burglary.
- The insured or a traveling companion is involuntarily terminated or laid-off through no fault of their own and has been an employee for a specified length of time.
- If an employment related event happens requiring the insured to work during the plan trip. These can include such things as a merger or acquisition, government required product recall or bankruptcy proceedings. Proof will be required of the work requirement.
- The insured or a traveling companion’s company becomes unsuitable for business as a result of burglary or a natural disaster and as a key employee they need to be involved in the disaster recovery effort.
- The insured or traveling companion is the victim of a felonious assault within a specified time prior to departure. But don’t try to collect if the assault is committed by your traveling companion or family member.
- If the insured or traveling companion is involved in an automobile accident while enroute to the insured’s destination. Police report will be required.
- A named hurricane causes cancellation of travel to your destination. Usually there is a specified time frame such as 30 days after being inaccessible that benefits will be paid. Also no benefits will usually be paid if the hurricane is named before the effective date of your coverage.
What May Not be Covered
You will find that most trip cancellation policies will exclude (not cover) cancellation reasons such as the following. However, if you purchase cancel for any reason coverage or if you purchase a plan that includes cancel for any reason coverage, it may help you if any of the following occur.
Here are some cancellation reasons that may not be included in the standard trip cancellation coverage. If the canceled trip is:
- To obtain medical treatment,
- For routine medical treatment for an existing medical condition,
- Because the traveler decided they couldn’t afford the expense,
- Due to mental or psychological disorders, including anxiety, or depression,
- Due to pregnancy, child birth, or an elective abortion other than medical complications of pregnancy that threaten the life of mother or child.
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.