Travel Insurance FAQ

What are the Covered Reasons for Trip Cancellation?

What are the Covered Reasons for Trip Cancellation?

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Trip Cancellation can reimburse travelers for 100% of their prepaid and non-refundable trip costs if they need to cancel their trip for a reason that is covered by their policy. Many travelers rely on this coverage for peace of mind in case an emergency comes up. This is one of the main benefits travelers specifically look for when buying travel insurance.

However, there are some misconceptions regarding what Trip Cancellation can cover. Some travelers believe it’s more limited than it is, only covering an injury or illness. Other travelers believe it covers everything that may prevent them from taking their trip. Below, leading travel insurance comparison site, Squaremouth, explains the covered reasons for canceling a trip.

The Most Common Covered Reason for Trip Cancellation

Most covered Trip Cancellation claims are for medical emergencies. Trip Cancellation coverage for a medical reason goes beyond just covering the traveler on the policy. In addition to being covered to cancel if they become sick or injured before their departure date, travelers can also be covered for an illness, injury, or death of a traveling companion or non-traveling family member.

Other Covered Reasons for Trip Cancellation

Along with coverage for a medical emergency, there are many other events covered by Trip Cancellation insurance, including the following:

  • Hurricane & Weather can reimburse a traveler for their prepaid and non-refundable trip expenses if they must cancel due to inclement weather
  • Terrorism can reimburse travelers to cancel due to a terrorist attack in or near a city on their itinerary
  • Financial Default can reimburse a traveler if they need to cancel because of a complete suspension of operation by their travel supplier due to financial circumstances
  • Employment Layoff can reimburse a traveler’s trip costs if they cancel their trip due to an involuntary layoff or termination
  • Cancel For Work Reasons reimburses travelers who need to cancel their trip after having their pre-approved vacation time revoked due to a requirement at work

The Cancel For Any Reason Misconception

Cancel For Any Reason can be one of the biggest travel insurance misconceptions. This optional upgrade that partially reimburses travelers to cancel for a reason that is not otherwise covered. However, many travelers looking for this coverage don’t know that they may already be covered under Trip Cancellation.

Cancel For Any Reason is separate from Trip Cancellation. Travelers who upgrade their policy still have all of their policy’s Trip Cancellation benefits. If they cancel under Cancel For Any Reason, they can be reimbursed 75% of their prepaid and non-refundable trip costs. However, if they cancel for a reason that is listed as covered under their policy, they can be covered for 100% of their prepaid and non-refundable trip costs.