The biggest misunderstanding of travel insurance benefits

Published by October 4, 2012

The “cancel for any reason” benefit of some travel insurance policies is often the cause of much confusion. Squaremouth receives calls daily from customers who are confused about the differences between this benefit and the more common “trip cancellation” benefit.

“Cancel for any reason” allows travelers to cancel trips and claim trip costs without providing a reason for the cancellation. This benefit is only good up to two days before scheduled departure and typically increases a policy premium by about 50%. Travelers may select this benefit if they want to be able to cancel a trip for a reason not covered by “trip cancellation.” Unlike “trip cancellation,” this benefit will not reimburse travelers for 100% of trip costs – generally, the maximum reimbursement is 60-90% of trip costs.

“Trip cancellation” allows travelers to cancel trips and claim full trip costs, up until scheduled departure. Some of the common covered reasons for “trip cancellation” include sickness, injury or death of the traveler, traveling companion, business partner or family member.  Many policies also include cancellation coverage for terrorism, weather, financial default of a common carrier, and employment layoff. Because policies vary, it is important to review certificates carefully to make sure desired coverage is purchased.

Before paying a substantially higher premium for “cancel for any reason,” make sure that the cancellation reason of concern is not covered under “trip cancellation.” Squaremouth representatives are available Monday-Friday, from 9am-9pm ET to help with any questions regarding these benefits.