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.
However, travel insurance is no longer refundable after this date. Unfortunately, if a traveler decides to cancel their policy at a later date, they will not be given a refund for their 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 Impacted By Coronavirus
As the coronavirus pandemic impacted travel worldwide, some travelers have insured trips that have since been canceled. If the trip and policy are canceled during the money-back guarantee period, travelers can receive a 100% refund of premium.
Travelers whose trips have been canceled outside of this period should contact their travel insurance provider directly as soon as possible. Depending on their new procedures, providers may be able to issue a voucher for the premium paid or apply the policy to a new trip. All requests received are being treated as exceptions. While a specific outcome cannot be guaranteed, all providers are doing what they can to assist where possible.
For answers to frequently asked questions related to the coronavirus pandemic, please visit the Coronavirus Coverage FAQs in our Help Center.