Is Travel Insurance Refundable?
So, you decided to take some R&R and booked a vacation. Then, you did the responsible thing and took out a travel insurance policy. Great work! But for one reason or another, now you want to cancel the insurance and get the premium back. Is that possible? This article can tell you what your options are and what you have to do to recoup your money.
What is Travel Insurance?
Travel insurance is designed to protect you from financial losses associated with your travel—like if your baggage arrives late, you get injured, or your passport is stolen. Comprehensive policies even protect you before your trip, like if you get sick and have to cancel your plans entirely. What you pay for travel insurance depends on the cost of your trip and what type of coverage you get.
Why Would I Want to Cancel My Travel Insurance Plan?
If you are planning a trip, it’s always wise to spring for travel insurance. You just never know when the unexpected might happen. However, there might be occasions when it turns out you really don’t need or want the coverage you picked. This can include the following:
- You cancel your trip entirely
- You find a different policy that fits your needs better (e.g., cost, coverage, etc.)
- You realize you have duplicated coverage. Many times, this is related to your credit card. Some premium travel-branded credit cards offer travel insurance benefits, including:
If you find yourself in one of these situations after you purchased travel insurance, then you may want to cancel your policy in the hopes of getting back your premium in full. But is that possible?
Can I Get a Refund on Travel Insurance?
Yes, you can get a refund on travel insurance, but it all depends on the timing. There’s a certain window where you are eligible for complete reimbursement, and you have to fall within that window to be guaranteed a full refund. This is called the Money Back Guarantee Period, and it’s an essential part of travel insurance refund policy.
What is the Money Back Guarantee Period for Travel Insurance?
The Money Back Guarantee period is a short span of time where you can cancel your policy for any reason and get a 100% refund (minus perhaps a few dollars for processing fees). It’s also called a free look period.
The purpose is to give customers an opportunity to review their coverage once they receive their policy documents. If they aren’t satisfied, they can cancel, no questions asked, and get all their money back. It’s a consumer protection that’s even required by some states. The length of the period varies depending on the travel insurance company, but most insurers offer 10-15 days for the refund window. It’s always a good idea to carefully read your certificate of insurance to know what the restrictions and limits are.
How to Cancel a Travel Insurance Policy
If you are within your policy’s money back guarantee period, then the process for canceling is easy. Simply call your travel insurance provider directly and tell them you want to cancel. They may ask that you request the cancellation in writing. The company will issue a refund on your travel insurance policy in the original form of payment. Processing time may vary, but your refund should appear in 3-14 business days if using a credit card.
If you are canceling outside your free look period, then chances are you will not receive a full refund for your travel insurance. It’s even likely you won’t receive any money back at all. However, some insurance companies offer partial refunds or accommodations depending on the situation. Call your insurance provider and explain your reason for canceling and they may be willing to make a concession.
If you are still taking a trip but your policy doesn’t fit your needs anymore, talk to your insurance agent about making changes rather than canceling it altogether. That way you maintain coverage and don’t lose the premium you’ve already paid for.
Tips for Getting My Travel Insurance Premium Back
The best way to ensure you receive a refund on your travel insurance is to act quickly. The free look period begins as soon as you purchase your policy. It’s wise to double check how long your travel insurance cancellation window is and then put an alert on your calendar to remind you of the deadline. To get your travel insurance premium back with no questions asked, you must cancel by that date.
If you can, speak directly to your travel insurance company to cancel the policy. Make sure you get confirmation that the policy was canceled.
Common Reasons Refunds Are Denied
If you request a reimbursement for your travel insurance premium, your insurer may respond with a simple “no.” Here are some of the reasons why you may be denied a refund:
- You canceled outside the money back guarantee window: Some insurance companies offer grace periods, but in many cases, if you delay in making the request until after the deadline, you’re ineligible for a refund, period.
- You already departed on your trip: Even if your departure date falls within the free look period, you cannot request a refund if your policy states your trip has begun.
- You made a claim on your policy: Any claim activity would deny you the opportunity to get your premium money back. So if you are in the cancellation window, before you file a claim, see if recouping that money would be worth more than the cost of your premium.
Bottom Line: Is Travel Insurance Refundable?
Yes, travel insurance is refundable if you act within certain time restraints. The money back guarantee window, or free look period, allows travel insurance customers the opportunity to cancel their policy, no questions asked, and be reimbursed for their premium. To make sure your policy comes with a money back guarantee window, we’ve put together a list of plans that have a Money Back Guarantee, with how long their free look is. You can also select the money back guarantee filter on our quote form, and only policies with free looks will be returned for comparison.
Written by Sara Singh