Protect your travel plans with trip cancellation and interruption insurance
Explore the benefits of trip cancellation and interruption insurance to protect your travel plans against unexpected events – and secure affordable coverage with us today.
find out moreWhat is trip cancellation and interruption insurance?
Matt Hands, VP, Insurance
Trip cancellation and interruption insurance provides coverage for travel expenses if your plans are cancelled before you take off or interrupted while on the trip.
What is the difference between trip cancellation and interruption insurance?
Trip cancellation insurance is a type of travel insurance that reimburses prepaid, non-refundable costs if you are unable to take your trip due to an unforeseeable event. This coverage protects your investment if you need to cancel your trip before departure, and is typically offered as an optional add-on to a base travel insurance policy. Some insurers also offer it as a standalone policy.
Trip interruption insurance covers you if your trip is unexpectedly cut short after your departure due to an unforeseen event, or if you need to rejoin the trip. It is typically included as a component of a comprehensive travel insurance policy. This insurance ensures you are reimbursed for unused portions of your trip and additional expenses incurred to return home or continue your travel plans.
What does trip cancellation and interruption insurance cover?
Trip cancellation coverages
Trip interruption coverages
What’s not covered by trip cancellation and interruption insurance?
Trip cancellation insurance does not cover every possible issue, and typically excludes problems arising from foreseeable events. A foreseeable event is something that was known or expected before it occurred. In other words, if you’re buying a policy with a specific situation or expected problem in mind, it’s likely considered a foreseeable event and may not be covered.
For instance, if you purchase trip cancellation insurance for a vacation to Cabo San Lucas while a hurricane is approaching, coverage may not be provided, depending on the policy.
What’s not covered by trip cancellation insurance?
What’s not covered by trip interruption insurance?
Why do you need trip cancellation and interruption insurance?
Even the most meticulously planned trip can encounter hiccups. Whether it's a sudden illness, a natural disaster, or an unexpected work commitment, having trip cancellation and interruption insurance ensures that you're not left bearing the financial burden. Here are some key reasons to consider this coverage:
Unforeseen illness or injury
If you or a family member falls ill or gets injured before or during your trip, insurance can cover non-refundable expenses.
Natural disasters
Hurricanes, earthquakes, and other natural disasters can disrupt travel plans. Insurance can reimburse you for cancellations or interruptions caused by these events.
Work-related issues
Job loss or sudden work obligations can force you to change your plans. Trip insurance can help cover the costs.
Travel supplier issues
If your airline, cruise line, or tour operator goes out of business, insurance can protect your investment.
How do I get trip cancellation and interruption insurance?
Obtaining trip cancellation and interruption insurance is straightforward. Here’s a step-by-step guide to help you secure the coverage you need:
Assess your needs
Begin by evaluating your travel plans and potential risks. Consider factors such as the total cost of your trip, potential reasons for cancellation or interruption, and any pre-existing medical conditions.
Research insurance providers
Look into various insurance providers to compare their coverage options, terms, and customer reviews. Many reputable companies offer trip cancellation and interruption insurance.
Choose a policy
Select a policy that aligns with your needs. Policies can range from basic coverage to more comprehensive plans that include additional benefits like "cancel for any reason" options. Ensure that the policy covers all potential risks relevant to your trip.
Get a quote
Request quotes from different insurers to compare costs. You can often get quotes online by entering details about your trip, including travel dates, destinations, and the total cost.
Review the policy details
Carefully read the policy details, including coverage limits, exclusions, and the claims process. Make sure you understand what is and isn’t covered before making a purchase.
Purchase the insurance
Once you’ve selected a policy, you can purchase it directly from the insurer’s website, through a travel agency, or by contacting the insurance provider. It’s best to purchase insurance as soon as you book your trip to ensure maximum coverage.
Keep documentation
After purchasing, keep a copy of your policy documents, including your policy number and contact information for the insurer. Store these in a safe place and have them readily accessible during your trip.
File a claim if needed
If you need to cancel or interrupt your trip, follow the insurer’s claims process. This usually involves submitting a claim form along with supporting documentation, such as medical records or proof of interruption.
How much does trip cancellation and interruption insurance cost?
On average, the cost of trip cancellation and interruption insurance ranges from 4% to 10% of the total trip cost. For example, for a $5,000 trip, expect to pay between $200 and $500 for insurance. For a $10,000 trip, the cost could range from $400 to $1,000.
The actual cost you’ll pay for trip cancellation and interruption insurance varies based on several factors, including your age, health status and destination. Here are general factors used to calculate travel insurance premiums:
| Factors | Description |
| Trip cost | The total cost of your trip is a significant factor in determining the premium. More expensive trips generally require higher coverage limits, leading to higher premiums. |
| Coverage amount | Policies that offer more extensive coverage, including higher reimbursement limits and additional benefits such as "cancel for any reason," tend to be more expensive. |
| Traveller’s age | Travelling to destinations with higher risks (e.g. countries with political instability or frequent natural disasters) may result in higher premiums. |
| Trip duration | Longer trips typically cost more to insure than shorter ones, as the likelihood of an interruption increases with the length of the trip. |
| Destination | Traveling to destinations with higher risks (e.g. countries with political instability or frequent natural disasters) may result in higher premiums. |
| Pre-existing medical conditions | If you have pre-existing medical conditions and want them covered, you might need to purchase a waiver, which can increase the overall cost of the policy. |
| Type of coverage | Basic policies are less expensive, while comprehensive plans that include features like "cancel for any reason" or high coverage limits for medical expenses can cost more. |
How can I get the best value for trip cancellation and interruption insurance?
- Compare multiple quotes: Shop around and compare quotes from different insurance providers to find the best coverage at a competitive price.
- Consider your needs: Choose a policy that offers the right balance of coverage and cost based on your travel plans and risk tolerance.
- Read the fine print: Ensure you understand what’s covered and any exclusions or limitations. Sometimes paying a bit more for comprehensive coverage can be worthwhile for peace of mind.
By understanding the factors that influence the cost and comparing options, you can find a policy that fits your budget and provides the protection you need for your trip.