Considering a trip cancellation insurance policy can be a wise choice when booking a vacation, especially the expensive ones. Sometimes, people travel a lot due to their profession or passion. In such cases, trip cancellation insurance must be a part of the insurance policy you buy. Buying it as an optional coverage can also save you from unforeseen travel crises. Trip cancellation is all about covering you when you must cancel a trip for a covered reason. To understand what it is and how it works, keep reading.
What is trip cancellation insurance?
Trip Cancellation Insurance is a pre-departure benefit that can cover trip cost if you must cancel the trip for a covered reason. It applies when a person books a trip within the policy period and for some reason must cancel the trip before departure.
Trip cancellation insurance reimburses an insured individual’s pre-paid, non-refundable travel costs if he has canceled the trip for a covered reason. The non-refundable travel costs can be accommodation and hotel reservations, flight tickets, cruise bookings, events, excursions, and more, which you have already paid for before the start of the trip. Each policy can have different valid reasons for cancellations. Therefore, reading the brochure is necessary.
What does the trip insurance cover?
Though covered reasons can differ from one plan to another, the most common ones are unforeseen injuries, sickness, accidents, and the death of a traveler or traveling companion. Besides inclement weather and natural disasters, job termination, war, terrorism, strike in the destination country, and legal obligations like jury duty or appearing in court.
Some trip cancellation plans also include trip delay and interruption benefits. If the traveler faces short-term delays during the trip, the plan can reimburse transport costs, hotel reservations, meals, and more. The trip interruption benefit can help you recover the lost money if your trip is cut short due to a covered reason.
Suppose you have booked a trip to France costing $5000, including flights, excursions, hotels, and other events- all of which are non-refundable. Then, a week before the vacation, you fall sick and get hospitalized. With a trip cancellation insurance plan, you can get back all the non-refundable costs if the actual amount is insured.
What is not covered in trip cancellation insurance?
There can be several reasons to cancel a trip, but a trip cancellation policy does not cover every problem. The policies do not cover the trip costs from foreseeable events. For example, suppose your traveling companion has a mental disorder and self-harms, needing immediate medical help, which stops your vacation. Such events are excluded from the policies.
Some more examples are- attempted suicide, fertility treatments, abortion, pregnancy, childbirth, alcohol, substance abuse, anxiety, depression, war, military duty, and more.
Since trip cancellation plans vary, reviewing the policies beforehand is always recommended. If you have any concerns about your plan’s coverage, call us.
How much does trip cancellation insurance cost?
The trip cancellation cost depends on two main factors- a) age of the traveler and b) non-refundable trip cost that a traveler insures. Most plans have a flat premium for up to 30 days. After that, a daily premium will be added for each additional day. For instance, if you are vacationing in France for 45 days, there would be a flat premium for the first 30 days, and then you must pay an additional premium for the next 15 days.
You can insure the minimum plan limit if you do not want to insure the entire non-refundable trip cost. Or you can insure zero trip costs and buy a trip cancellation policy to get other benefits of medical, evacuation, interruption, and more. However, many factors decide the policy’s price, such as the traveler’s age, trip length, the number of travelers, trip expenses, plan coverage, optional add-ons, and more.
If your trip has more travelers, the premium will go higher automatically. Also, the older the people you travel with, you need to pay a higher premium because older people are at a higher risk of falling sick or having an accident. The cost also depends on non-refundable travel expenses like hotels, airfare, events, and other activities. Hence, all prices need to be calculated before choosing a plan.
Do you have any confusion? Contact us.
Why should you buy trip cancellation insurance?
- To cover lavish trips– Do you love traveling? Do you always book expensive vacations? In such cases, securing your journey with a trip cancellation insurance plan is a smart choice. The plan can protect you from financial losses if you cancel the trip.
- To protect advance travel plans– Booking an airline ticket or a cruise holiday is natural. Now, if there is any cancellation due to an unforeseen event, your trip cancellation plan can get you covered.
- Going on a trip with kids or elderly adults– Kids and seniors can be prone to sickness, and things can turn adverse unexpectedly. If you must cancel the trip your insurance policy can safeguard your investment.
- Sick traveler or traveling companion- If the traveler or the traveling companion often falls ill, the trip cancellation plan can help. The coverage can save the trip cost for the last-minute cancellation instead of losing all the money.
Is getting trip cancellation coverage worth it?
Purchasing trip cancellation coverage is essential though not mandatory. Getting a policy can help you eventually if you wish to secure your trip expenses. But if you are willing to take risks and sure that nothing can happen before departure, you can opt for a regular insurance plan with no travel-related benefits.
If you are looking for trip cancellation insurance options, NRIOL.net has some popular plans. Our plans are affordable, robust, and offer the utmost value to every category of traveler. There is also a ‘free look period’ for travelers who change their minds often. Individuals can cancel their purchased policy during this period and get a full refund. To know everything in detail, contact us.