Many travelers mistakenly think they need to purchase Cancel for Any Reason coverage when buying travel insurance. However, normal cancellation policies cover a majority of reasons why most travelers cancel their trips.
Most travel insurance policies cover cancellation due to sickness, injury or death to the travelers or their family members. Some plans also cover trip cancellation associated with transportation delays due to weather, mechanical failure or worker strikes, Financial Default of the transportation provider or tour operator, the traveler’s home becoming uninhabitable due to a natural disaster and work issues such as being laid off or having vacation time revoked. Check the policy certificate for exact reasons as coverage varies with each plan.
However, if you’re indecisive or have specific reasons to cancel that are not listed above Cancel for Any Reason may be beneficial. This benefit allows you to cancel your trip without documentation up to two days before your departure date. Since fear or loss of enjoyment is not included with regular cancellation coverage, Cancel for Any Reason can cover travelers who decide not to travel because of a virus outbreak on a cruise ship or heavy rains scheduled during their Caribbean vacations.
This coverage is more expensive, raising premiums as high as 50% and typically only reimburses travelers 75% of their trip cost.