Everything You Need to Know About Trip Cancellation and Interruption Insurance
One of the many decisions that people are faced with when travelling is whether or not to get travel insurance. Once you have made the decision to get travel insurance, you need to decide which forms of coverage you will need for your trip. One of the most important policies that you should have when travelling is trip cancellation and interruption insurance.
Sometimes life gets in the way of travelling
You never know what could happen between the time you book your trip and when your trip is set to take place. People often book vacations and business trips well in advance and unforeseen issues and circumstance can occur in the interim.
Sometimes life gets in the way and forces you to change your travel plans. From sudden illnesses, to family issues, or even an unexpected job loss, there are many reasons why you may need to cancel a trip. But, what if you have already paid for it? Without trip cancellation insurance, you will be out the amount that you paid.
About trip cancellation and interruption insurance
Trip cancelation insurance covers the costs of having to cancel your trip before departure or if you trip is interrupted due to unforeseen circumstances once your trip has begun. Most policies will cover you up to the amount purchased for the trip. This means that if you spent $3,000 on your trip, you will be reimbursed for this amount.
Why do you need this coverage?
When you book travel plans such as flights and hotel stays, most of these purchases are either non-refundable or you will be forced to pay a hefty cancellation fee. Trip cancellation insurance ensures you get your money back if you are forced to cancel your trip.
Under what grounds can I cancel a trip?
Most policies include cancellation coverage for the following events:
- Unexpected illness
- Injuries preventing you from travelling
- Illness, injury or death of a family member
- Natural disasters and other weather related issues
- Travel advisory or unsafe travel conditions
- Loss of job
- Missed travel connections
- Other reasons as outlined in your policy
Policy options
Like other travel insurance policies, you have some flexibility in terms of your policy options. In most cases you can purchase the policy for a single trip, as part of an annual travel insurance plan or purchase trip interruption coverage as its own policy.
Have you ever had to cancel a trip? Did you have trip cancellation coverage? If not, did you lose money due to cancellation?