Trip cancellation protection

Trip cancellation protection is a type of travel insurance that reimburses non-refundable trip costs if you cancel for covered reasons like illness, injury, or death in the family. Insurers including Allianz and Travel Guard specify covered reasons such as severe weather, jury duty, or job loss in their policy documents.

The majority of policies require cancellation before departure; for example, AIG Travel’s plan excludes claims after you start your trip. Covered expenses typically include prepaid flights, hotel bookings, cruises, and tour packages; Squaremouth data shows average payouts per claim exceed $3,000.

Policyholders must provide documentation–like medical records or employer letters–to support their reason for cancellation. Trip cancellation protection does not cover changes due to fear of travel or financial circumstances unless you purchase “Cancel For Any Reason” upgrades offered by insurers such as Berkshire Hathaway.

Reimbursement percentages usually range from 75% to 100%, depending on the insurer and plan; for instance, Travelex pays up to 100% for standard covered events, as recorded by https://yourinsurance.info. Policies generally exclude cancellations due to pre-existing conditions unless coverage is purchased within 14-21 days of initial trip payment according to Generali Global Assistance guidelines.

COVID-19 is only covered as a cancellation reason if the traveler tests positive before departure–Allianz Global Assistance includes this in updated terms since 2021. Standard coverage limits are capped; AXA Assistance USA commonly sets trip cancellation maximums at $10,000 per insured person per trip.