Trip Cancellation Coverage

10 March 2011
Trip Cancellation Coverage

Trip cancellation insurance coverage reimburses up to 100% of your pre-paid, non-refundable travel costs when an unforeseen and covered event causes you to cancel your trip.

Contents (click to jump down)
What does Trip Cancellation cover?
What’s NOT Covered?
Important notes about this coverage
What type of policy covers this?
How much coverage does each company provide?
Summary

Let us tell you a story

Rob and Jennifer planned a Colorado ski trip with their two children. They pre-paid for a ski package that included rooms at a lodge right at the base of the lifts. Their ski package also included lessons for the kids and lift tickets for the parents.

Just four days prior to departure, the kids woke with high fevers and sore, scratchy throats. A trip to their pediatrician revealed they had strep and canceling the trip was recommended by the doctor.

With trip cancellation coverage on their travel insurance policy, Rob and Jennifer were able to recover their pre-paid non refundable costs – even the lift tickets. They could take the kids skiing another time.

What does Trip Cancellation insurance cover?

Trip cancellation insurance coverage reimburses you (up to the covered amount) for pre-paid non-refundable trip costs if you have to cancel your trip for a covered reason.

This benefit also pays the additional cost in the per-person rates (known as a single supplement fee) if a traveling companion’s covered trip is canceled but yours is not.

While each plan defines what its trip cancellation insurance benefits covers, the following are common reasons for trip cancellations:

  • Injury or illness – An injury or illness of you, your destination host, your traveling companion, a family member, or business partner.
  • Weather or natural disaster – A natural disaster destroys your destination, your intended destination accommodations, or your own home.
  • Hurricane – A hurricane destroys your home or your destination prior to your departure.
  • Schedule conflicts – Schedule issues may include jury duty, court summons, or school year extensions.
  • Traffic Accidents – You or your traveling companion are in a traffic accident en route to your scheduled departure.
  • Property damage – Your home, your business, or your destination accommodations are vandalized, burglarized, or damaged through criminal acts.
  • Terrorism or mandatory evacuations – A terrorist event that occurs at your destination and results in mandatory evacuations.
  • Bankruptcy or financial default – A pre-paid travel supplier completely ceases all operations due to financial default or bankruptcy.
  • Assaults – You or your traveling companion are a victim of a felonious assault prior to your scheduled departure.
  • Work conflicts – You or your traveling companion are terminated, required to transfer to a new work location, or in the military and deployed to help with disaster relief.  (An optional upgrade, ‘cancel for work reasons’, provides coverage for additional employment conflicts.)
  • Illness or Death of host – Hospitalization or death of your destination host.
  • Labor strikes – Your travel is disrupted or flights are cancelled due to an unannounced labor strike.
  • Theft or loss of passport/visa – You cannot travel because your passport or visa has been lost or stolen.

This benefit is distinctly different from trip interruption coverage, which goes into effect after a traveler has started his or her trip.

What’s NOT Covered with trip cancellation insurance coverage?

The trip cancellation insurance coverage of any policy covers the unforeseen events that are listed in the policy. This also means that if the plan doesn’t list the event, then cancellation for that reason won’t be covered.

Trip cancellation coverage will never cover a traveler for:

  • Canceling a trip where the purpose of which is to obtain medical treatment.
  • Canceling a trip for routine medical treatment for an existing medical condition.
  • Canceling a trip because the traveler feels that taking the trip would be unsafe.
  • Canceling a trip because the weather is not agreeable.
  • Canceling a trip because the traveler decided they couldn’t afford the expense.
  • Canceling a trip due to mental or psychological disorders, including anxiety, depression, and more.
  • Canceling a trip because the traveler had a change of heart.
  • Canceling a trip due to pregnancy, child birth, or an elective abortion other than medical complications of pregnancy that threaten the life of mother or child.
  • Canceling a trip due to a government regulation or prohibition.
  • Canceling a student trip because the school board canceled the trip.
  • Canceling a trip due to civil riots at your destination.
  • Canceling a trip due to alcohol or substance abuse.
  • Canceling a trip due to mental illness or panic attacks.
  • Canceling a trip due to unlawful acts committed by the insured, their traveling companion, or a family member, whether insured or not.
  • Canceling a trip due to an intentionally self-inflicted injury, suicide, or attempted suicide of the insured, their traveling companion, or a family member, whether insured or not.

Trip cancellation insurance for “any reason”

It’s important to note, however, that adding the ‘cancel for any reason’ option to your travel insurance plan will help in the situations above when you are not covered.

With Cancel For Any Reason (CFAR) coverage, you can cancel your trip for any reason at all, as long as you:

  1. Insure 100% of your trip cost
  2. Cancel more than 48 hours before departure
  3. Buy it within the required time, usually between 10-30 days of your initial trip deposit date

Waiver of exclusions

Some exclusions can be waived by adding options to your travel insurance policy:

  • Canceling a trip due to a pre-existing medical condition.
  • Canceling a trip due to travel supplier financial default.
  • Canceling a trip because you are required to work. *

* Some plans include cancellations for work reasons benefits in their plans. Specifically, Travel Guard’s Platinum and Gold plans include this benefit automatically. Other plans have ‘cancel for work reasons’ as an option that can be added.

Important notes about this coverage

  • The effective date for trip cancellation insurance coverage begins at 12:01 a.m. the day after the premium is paid.
  • This coverage ends at the earliest of either: the cancellation of your trip, or the date and time you start your trip
  • You must notify the travel suppliers and the plan provider of your intent to cancel prior to trip departure (unless you are incapable of doing so).

What type of policy covers this?

Almost all package plans include some coverage for trip cancellations, but what the coverage covers varies from plan to plan.

Some travel medical plans, specifically the following two from FrontierMEDEX, have trip cancellation coverage:

Trip Cancellation Insurance Coverage FAQs

Does trip cancellation insurance covers hotels?

Yes, trip cancellation (as part of a trip insurance policy) can cover any pre=paid and non-refundable trip cost. Does trip cancellation insurance cover weather?

Yes, hurricanes and severe weather can be covered for trip cancellation. The important part is knowing the details. For example, you cannot cancel a beach trip because it is going to rain. Weather coverage with cancellation is for severe weather that causes flights to be canceled or resorts to be closed.

In addition, some plans cover NOAA Hurricane Warnings which extends coverage to a mere warning, as opposed to an actual hurricane strike, Does trip cancellation insurance cover pregnancy?

Yes, some plans cover pregnancy as a covered reason for cancellation. The pregnancy must occur after the purchase of travel insurance. Does trip cancellation insurance cover pre-existing conditions?

Yes, many plans include a waiver to the pre-existing conditions exclusion, making it possible to get cancellation coverage even with a pre-existing condition. Does trip cancellation insurance cover for any reason?

No, a standard trip insurance plan has a list of covered reasons. This covers common things like illness, accident, death in the family, weather, jury duty, terrorism, etc.

There are plans that offer a Cancel For Any Reason upgrade. This will reimburse trip costs up to 75% if you cancel for any reason.

How much trip cancellation insurance coverage does each company provide?

POLICYCOMPANYPRIOR TO DEPARTUREPOLICY LIMITMAXIMUM TRIP COST
DeluxeAllianzUp to departure **150% of insured trip costs$100,000
Annual Business Travel Protection (Executive)AllianzUp to departure **$5,000 (annual plan)
ClassicAllianzUp to departure **150% of insured trip costs$100,000
BasicAllianzUp to departure **100% of insured trip costs$10,000
Annual Travel ProtectionAllianzUp to departure **$1,000 (annual plan)
Custom LuxeCSAUp to departure100% of insured trip costs$40,000
CustomCSAUp to departure100% of insured trip costs$40,000
TravMed Global (optional rider)FrontierMEDEXUp to departure$500-$10,000 (medical plan)
TravMed Abroad (optional rider)FrontierMEDEXUp to departure$5,000 (medical plan)
Global Alert Preferred PlusGlobal AlertUp to departure *100% of insured trip costs$50,000
Global Alert PreferredGlobal AlertUp to departure *100% of insured trip costs$50,000
Global Alert EssentialsGlobal AlertUp to departure *100% of insured trip costs$50,000
NoneGlobal Underwriters
TripProtector PreferredHTH WorldwideUp to departure100% of insured trip costs$30,000
TripProtectorHTH WorldwideUp to departure100% of insured trip costs$30,000
TripProtector e-SaverHTH WorldwideUp to departure100% of insured trip costs$30,000
Advantage CompleteMH RossUp to departure100% of insured trip costs$100,000
Advantage AssetMH RossUp to departure100% of insured trip costs$15,000
Advantage BridgeMH RossUp to departure100% of insured trip costs$100,000
RoundTrip EconomySeven CornersUp to departure100% of insured trip costs$20,000
Bordercross WorldwideSeven CornersUp to departure100% of insured trip costs$40,000
RoundTrip EliteSeven CornersUp to departure100% of insured trip costs$30,000
RoundTripSeven CornersUp to departure100% of insured trip costs$20,000
RoundTrip ChoiceSeven CornersUp to departure100% of insured trip costs$30,000
Travel LiteTravelexUp to departure100% of insured trip costs$30,000
Travel PlusTravelexUp to departure100% of insured trip costs$75,000
Travel MaxTravelexUp to departure100% of insured trip costs$50,000
Travel BasicTravelexUp to departure100% of insured trip costs$10,000
Travel SelectTravelexUp to departure100% of insured trip costs$25,000
PlatinumTravel GuardUp to departure100% of insured trip costs$100,000
BasicTravel GuardUp to departure100% of insured trip costs$100,000
GoldTravel GuardUp to departure100% of insured trip costs$100,000
My Travel GuardTravel GuardUp to departure100% of insured trip costs$100,000
SilverTravel GuardUp to departure100% of insured trip costs$100,000
Select BasicTravel Insurance ServicesUp to departure100% of insured trip costs$100,000
Select EliteTravel Insurance ServicesUp to departure100% of insured trip costs$100,000
Select PlusTravel Insurance ServicesUp to departure100% of insured trip costs$100,000
Trip Protector LiteTravel InsuredUp to departure100% of insured trip costs$50,000
Trip Protector Lite ExpandedTravel InsuredUp to departure100% of insured trip costs$50,000
Worldwide Trip ProtectorTravel InsuredUp to departure100% of insured trip costs$50,000
Worldwide Trip Protector GoldTravel InsuredUp to departure100% of insured trip costs$50,000
Vacation BasicTravel SafeUp to departure100% of insured trip costs$10,000
Vacation ClassicTravel SafeUp to departure100% of insured trip costs$150,000

* Cancel within 24 hours of departure if your trip destination is under an NOAA hurricane warning.

** Cancel within 72 hours to qualify for the highest reimbursement. See the policy documentation for details.

Summary

  • The reason for cancellation must be listed in the policy for a cancellation to be covered
  • Trip cancellation insurance coverage provides 100% reimbursement of pre-paid non refundable expenses
  • See why entering a trip cost of $0 is too risky
  • Cancellation must occur within the time frame defined in the policy
  • You can compare travel insurance using a comparison tool like Squaremouth.com
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Damian Tysdal
Author
DamianTysdal

Damian Tysdal is the founder of CoverTrip, and he believes travel insurance should be easier to understand. He started the first travel insurance blog in 2006.

Damian Tysdal is the founder of CoverTrip, and he believes travel insurance should be easier to understand. He started the first travel insurance blog in 2006.