Is Travel Insurance Refundable?
Most travelers who buy travel insurance want to protect their non-refundable trip payments, and travel insurance policies with Trip Cancellation coverage can do just that. But is the travel insurance policy itself refundable? It depends on when a traveler seeks a refund for their policy.
Leading travel insurance comparison site, Squaremouth, explains when travelers can be refunded for their travel insurance premiums.
Refunds Available Through Money Back Guarantee
The only time a traveler is guaranteed a refund for their policy’s premium is if they decide they want to cancel their travel insurance policy within their Money Back Guarantee period. This is the window immediately after a traveler buys their policy in which they can cancel for a 100% refund of premium. The purpose of this benefit is to give travelers extra time to review their policy documentation to be sure it’s the best policy for their coverage needs.
Depending on the policy, the Money Back Guarantee period typically lasts between 10 and 14 days. During this time, travelers can cancel their policy for any reason for a full refund. Unfortunately, if a traveler decides to cancel their policy at a later date, they will not be given a refund for their policy.
Can You Cancel Travel Insurance?
Yes, travel insurance can be canceled at any time and for any reason. However in order to receive a refund, the cancellation must occur within a policy’s Money Back Guarantee period. To cancel a policy, a traveler can contact their provider directly.
Can Travel Insurance be Refunded?
Yes, policyholders can receive a full refund on their travel insurance policy if they cancel within the policy’s Money Back Guarantee period. Since all policies on Squaremouth include a Money Back Guarantee period, they all are eligible for refunds assuming they are canceled within 10 to 14 days, depending on the policy.
Travel Insurance Premium Not an Insurable Cost
Many travelers ask if they can include the cost of their travel insurance policy as part of their trip cost, thinking they can receive a refund for the money they spent on insurance if they need to cancel their trip. However, this cost is not insurable under the Trip Cancellation benefit.
The Trip Cancellation benefit can only cover a traveler’s prepaid and non-refundable trip expenses. This can include their airfare, hotel reservations, tours, and excursions, among others. If a traveler cancels their trip, they can be reimbursed for those trip expenses, however as the policy’s premium pays for a service that begins before the trip, it is not considered a reimbursable expense.
Travelers looking for more information regarding canceling a policy due to the coronavirus pandemic can visit Squaremouth’s Covid-19 information hub.