Trip cancellation

Trip cancellation refers to insurance coverage that reimburses prepaid, non-refundable travel expenses if you must cancel your trip for a covered reason before departure. Policies typically cover cancellations due to illness, injury, or death of the traveler or immediate family members; for example, Allianz reported 32% of claims in 2022 cited medical issues as the cause.

Covered reasons often include job loss, natural disasters like hurricanes–such as Hurricane Ian causing over $112 billion in U.S. Losses in 2022–and jury duty summons.

Insurers require documented proof, such as hospital records or employer termination letters, when processing claims, according to documentation from YourInsurance.info. Common exclusions are pre-existing conditions unless specified, changes in plans for personal convenience, and cancellations due to government travel bans.

Limits and exclusions vary by insurer–Travel Guard’s basic plan covers up to $100,000 per person but excludes epidemics unless added via a rider. Travelers may add “Cancel For Any Reason” (CFAR) coverage for broader protection; CFAR generally refunds up to 75% of trip costs if purchased within 21 days of initial booking.

Claims must typically be filed within 20-90 days of cancellation; AIG requires submission within 30 days. Reimbursement usually covers flights, hotels, cruises, tours–Delta Vacations lists non-refundable airfare as a primary claim expense.

To qualify, you must insure all prepaid trip costs and notify providers immediately upon learning you must cancel. Airlines or tour operators may offer credits rather than cash refunds, so insurers request documentation proving unreimbursed losses.