Trip Cancellation: What’s Covered and How It Works

Trip cancellation coverage can help reimburse you for certain prepaid, nonrefundable travel expenses if you must cancel your trip for a covered reason before it begins. This coverage may apply to airfare, hotel reservations, tours and other travel arrangements that you can’t get refunded otherwise.

Covered reasons generally include sudden illness or injury, certain natural disasters and other unexpected events outside your control. Your travel insurance plan lists these reasons in detail in the policy of insurance, so it’s important to review your coverage for any limitations or exclusions before you travel.

Covered reasons can vary by plan so always be sure to read the policy of insurance for your specific travel insurance plan to know what is covered. Some of the more common covered reasons include:

• Serious illness or injury affecting you, a traveling companion, or a close family member
• Death of a traveler, traveling companion or family member
• Natural disasters or severe weather making your destination uninhabitable
• Unexpected job loss or employer-initiated transfer
• Military deployment or jury duty
• Labor strike cancels your transportation

With the Cancel for Any Reason (CFAR) upgrade if you need to cancel for a reason not covered by your travel insurance plan, you may have coverage up to a certain percentage of your trip cost. CFAR availability varies by plan and state of residence.

Trip cancellation coverage may help reimburse prepaid, nonrefundable travel expenses that you’ve already paid for your trip, like:

• Nonrefundable airline tickets
• Hotel deposits and prepaid tours
• Cruise fare or vacation package payments
• Change fees charged by travel suppliers

The amount you can be reimbursed depends on the total insured trip cost and your specific policy terms.

Yes, most comprehensive travel insurance plans include Trip Cancellation coverage. However, coverage applies only if the cancellation occurs due to a covered reason listed in your policy.

For example, if you need to cancel an all-inclusive trip because you’re sick and your doctor advises against travel, your plan may help reimburse your nonrefundable expenses. But cancelling because you change your mind isn’t typically covered unless you’ve purchased the CFAR upgrade (Cancel for Any Reason).

In most cases, yes. Trip cancellation due to illness is one of the most common covered reasons for cancelling a trip. You’ll need documentation from a medical professional confirming that you’re unable to travel due to a medical condition. Be sure to notify your travel suppliers and travel insurance provider promptly and keep all receipts and records for your claim. Note that there may an exclusion for certain pre-existing medical conditions.

Yes, you may be able to cancel your travel insurance plan and receive a premium refund depending on when and how it was purchased. Most Travel Guard® travel insurance plans offer a 15-day free look provision, which allows you to cancel within 15 days after purchase for a full refund, provided your trip hasn’t started and you haven’t filed a claim.  Premium refund terms vary by state, so you should review your policy for details.

Trip Cancellation coverage generally doesn’t cover cancellations for reasons such as:

• Changing your mind about traveling
• Ignoring medical advice not to travel
• Fear of travel due to general uncertainty or minor inconveniences

Always read your policy of insurance carefully to understand exclusions and optional coverages.