What is trip cancellation and interruption insurance? (2024)

FAQs

What is trip cancellation and interruption insurance? ›

For instance, trip cancellation coverage reimburses travelers when their trip is canceled altogether for eligible reasons, whereas trip interruption coverage provides reimbursem*nt for some prepaid travel expenses when a trip is interrupted after it has already started.

Trip Interruption is a post-departure benefit that can reimburse a traveler's unused trip costs if they need to interrupt their trip for a covered reason. The most common covered reason is unforeseen illness, injury, or death of the traveler, a traveling companion, or a non-traveling family member.

Here are some examples: The unexpected death, sickness or injury of you, a travelling companion, or a family member. You need to attend the birth of a family member's child. Travel carrier cannot get you to your destination due to a natural disaster or severe weather.

The unexpected death, illness, or injury of you and/or a traveling companion that deems you unfit to travel, by order of a licensed physician. The hospitalization or death of a non-traveling family member.

Trip Interruption Expenses

If a car accident interrupts your road trip, AAA will reimburse you for expenses such as car rental fees, lodging, and meals.

Sickness, injury, death, or quarantine of a member of your travel party. A delay that causes you to miss or interrupt any part of your covered trip due to weather, mechanical reasons, or travel advisory. Loss or damage to your baggage and personal effects due to theft, burglary, fire, or transportation hazards.

Conditions which may not be covered

Conditions like terminal illness, the need for oxygen, pending surgery, chronic lung disease, cardiovascular disease, specific types of cancer, congestive heart failure, and recurring pain are generally excluded from coverage.

Indulging in reckless activities, such as excessive drinking or taking recreational drugs, can lead to a rejection of any insurance claim, whether related to medical, baggage, liability or anything else.

What cancellations are covered by travel insurance? ›

As a general rule, travel insurance covers losses from unforeseen circ*mstances. With flights and trip cancellations, covered reasons include emergencies, such as unexpected natural disasters, the death of a family member or a serious illness or injury.

Our analysis found that AIG, Seven Corners and WorldTrips offer the best “cancel for any reason” (CFAR) travel insurance. A travel insurance policy with CFAR partially reimburses your insured trip costs if you cancel for reasons not listed in the policy.

Regardless, if you feel too sick to travel it's important to have your opinion confirmed and your diagnosis documented by a doctor. Medical documentation will be required if you're looking to be reimbursed for your non-refundable trip costs if you have to cancel your trip.

Be in touch with your doctor so that he or she can vouch for you. Cancel more than 24 hours in advance. Ask your doctor (or a nurse or someone at the front desk) politely, and make it as easy for them as possible to provide a doctor's note.

Trip cancellation insurance can reimburse prepaid, non-refundable travel expenses if you must cancel your trip due to an unforeseen event covered under your policy. If you are planning your next globetrotting adventure, consider protecting yourself with trip cancellation insurance.

You can usually claim back the cost of your tickets to travel, plus accommodation for the time you should have been on holiday. So, if you were unable to travel at all, you can claim back the entire cost of your portion of the holiday, less the excess on your policy, up to a certain amount.

How Does Trip Cancellation/Interruption Insurance Work? Trip cancellation and interruption insurance protects non-refundable travel purchases made with your credit card in the event your trip is cut short.

Travel protection provides a more basic form of coverage for tourists. It tends to be significantly cheaper but usually only covers trip cancellations. On the other hand, travel insurance offers more comprehensive coverage, often including medical emergency evacuation, baggage delays and flight cancellations.