If you enjoy going on holidays or travel often, you might have considered buying a travel insurance policy. Trip cancellation insurance is one of the most popular covers under a travel policy.
This is because it can help you get reimbursement if you are forced to cancel a planned trip. This blog will discuss how trip cancellation insurance can impact your upcoming trip.
Understanding Travel Insurance Trip Cancellation
If you are unable to take a planned trip because of an unforeseen situation, trip cancellation insurance cover will reimburse you for the non-refundable, prepaid and forfeited expenses. Depending on the type of travel insurance you buy, a policy will help cover expenses up to the time of the departure date. Trip cancellation insurance is usually sold as a component of a regular travel insurance policy.
Some travel insurance policies enable you to purchase trip insurance with “cancel for any reason,” which means you can cancel the trip for any reason not specifically covered in the policy. Typically, this option is not offered by most of the insurers, must be purchased within a specific period after booking a trip and comes at a high premium.
What Does Travel Insurance Cancellation Cover?
While coverage limits and rules differ depending on the insurer and policy type, here are some examples of issues commonly covered under trip cancellation insurance-
- The death of the insured or their travel companion or the death of their non-travelling family member.
- Any unforeseen medical condition or serious injury that makes the insured or their travel companion unfit for travelling (ordered by a licensed physician).
- Severe weather conditions or strikes can lead to the travel services being unable to operate.
- A legal obligation like jury duty or being served with a court order.
What is Not Covered By Trip Cancellation Insurance?
While every traveller might have a unique situation when cancelling a trip, foreseeable events are often excluded from trip cancellation insurance coverage. Here are other examples of circumstances typically not covered under this insurance.
- Elective abortion, normal pregnancy, childbirth or fertility treatments.
- Alcohol and substance use or abuse.
- Suicide or attempted suicide, intentional self-inflicted harm.
- War (undeclared or declared), military duty and acts of war.
- Participation in professional or amateur training and sporting events.
- Nervous or mental health disorders such as psychosis, depression or anxiety.
- Financial default of a carrier (like an airline).
How Much Does Travel Insurance Trip Cancellation Costs?
Several factors affect the cost of trip cancellation insurance coverage, including:
Policy Selection
Basic travel policies with fewer insurance coverage options will cost significantly less. Hence, selecting only the required benefits is essential to avoid paying for coverage you would not use.
Age of Travellers
Usually, the older you are, the higher the cost of a travel insurance policy. Older travellers are considered more prone to risks as they have more health issues and are more likely to file a claim.
Trip Length
The longer the trip, the more expensive the policy will be.
The Number of Travellers
The more individuals you insure, the higher your insurance premium will be.
To Wrap It Up
Now that you know about the benefits of trip insurance coverage within an international travel insurance policy make sure you purchase the same for your upcoming international trip to get financial protection and ensure a hassle-free travel experience.
