Last updated on 04/16/2024
At InsureMyTrip, we know the importance of expecting the unexpected when it comes to travel insurance. Lucky for you, and all of our travelers, there are two different benefits that will cover a cancelled trip: trip cancellation and Cancel for Any Reason
Trip Cancellation
You will find basic trip cancellation coverage in every comprehensive policy. This will extend coverage for the cancellation of a trip for specific unforeseen, covered reasons.
Commonly, travel insurance plans, including cruise insurance plans, will cover reasons such as:
- 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
- Weather or common carrier related issues (varies by policy)
- Unforeseen natural disasters at home or the destination
- A legal obligation, such as being called for jury duty or to appear as a witness in court
The details vary from provider to provider and with each plan. If you do need to cancel, you will be reimbursed 100% of the prepaid, non-refundable trip cost for which you are insured and can provide documentation. All of this coverage, is only if the trip is cancelled due to a specific, unforeseen covered reason.
Cancel for Any Reason
Cancel for Any Reason (CFAR) is an optional travel insurance benefit available on some of the plans available with InsureMyTrip. Usually, this benefit is an additional charge on the plan, but it comes with extended coverage that you may find worthwhile.
Unlike basic trip cancellation coverage, the CFAR benefit has a few eligibility criteria:
- Depending on the policy, only available within 10-21 days of initial trip payment
- You MUST insure 100% of your pre-paid, non-refundable trip cost
- Cancellation with the travel supplier must occur 48 or 72 hours before departure date, depending on the plan
- Benefits may only cover between 50%-75% depending on the policy.
With CFAR, it doesn't matter why you have to cancel your trip – you just can. Often times, travelers will purchase CFAR coverage when traveling to a part of the world with civil or political unrest. This allows the traveler to cancel if uncomfortable with leaving for the trip - second thoughts, fear of safety or a bad omen appeared. Regardless the reason if you are outside 48 hours before your trip, you can cancel.
Disclaimer: The information contained in this article serves as a general overview of benefits and should only be used for informational purposes. Refer to your individual certificate of insurance for specific coverages, exclusions and benefits. When in doubt, please contact one of our licensed agents for additional assistance.
FAQs
Unlike trip cancellation coverage, the optional travel insurance cancel for any reason benefit (CFAR) offers partial reimbursem*nt on prepaid, nonrefundable costs if you cancel for any reason, even those not typically covered by your comprehensive travel insurance policy.
Is it good to get trip cancellation insurance? ›
When booking travel, particularly expensive trips consisting of nonrefundable reservations, it makes sense to consider trip cancellation insurance since it can protect your deposit if your plans do not materialize due to unforeseen events.
What is not covered by trip cancellation insurance? ›
According to Allianz Global Assistance, a travel insurance provider, "Trip cancellations and trip interruptions due to known, foreseeable, or expected events, epidemics, or fear of travel are generally not covered."
What does trip cancellation insurance cover? ›
Trip cancellation insurance reimburses you for non-refundable and/or non-transferable deposits on pre-paid travel arrangements and cancellation penalties that a transportation carrier or tour guide may charge.
What is cancellation for any reason cover? ›
The coverage will include any trip cancelation for a reason not otherwise covered in the booking or any other policy. To be covered under the Cancel For Any Reason benefit, the customer must cancel the booking at least 24 hours before the scheduled travel date.
What type of cancellation does travel insurance cover? ›
Policies differ between providers, but cancellation cover usually includes: An injury or illness that prevents you from travelling. A fire or flood at your home.
What does cancel for any reason mean? ›
Cancel for any reason (CFAR) is an optional benefit that you can add to some trip protection plans. Many of the best travel insurance plans include a trip cancellation benefit that reimburses you for nonrefundable prepaid trip costs if you cancel your trip for a named peril that is covered by your protection plan.
Is cancel for any reason travel insurance expensive? ›
Regular travel insurance costs between 5% and 6% of your total trip cost. In our review, we found the average CFAR upgrade added 90% of the standard premium cost to your total insurance price. This means that in most cases, you can expect your premium to double when you upgrade to CFAR insurance.
What are valid reasons to cancel a flight and get a refund? ›
Covered reasons vary by policy and provider so be sure to read the covered reasons before purchasing a policy.
- Injury or Illness. ...
- Death. ...
- Natural Disaster. ...
- Acts of Terrorism/Evacuation. ...
- Financial Default of the Travel Company.
- Death or Hospitalization of Host.
- Residence Damage. ...
- Jury Duty or Military Deployment.
Refund of Insurance Cost After Trip is Cancelled
Therefore, if you need to cancel your trip for a covered reason, you would receive a refund for your prepaid and non-refundable costs, but not what you paid for the travel insurance.
Travel insurance reimburses the cost of nonrefundable travel plans if you need to cancel your flight for a covered reason. To receive reimbursem*nt, you must file a claim and submit supporting documentation that validates your eligibility to receive reimbursem*nt.
Do credit cards have trip cancellation insurance? ›
A number of credit cards provide various types of travel insurance (including trip cancellation, trip interruption and car rental loss and damage insurance) when you use your card to pay for flights, rental cars and other travel expenses.
What is the average cost of trip cancellation insurance? ›
According to our research, the average cost of travel insurance is $204, but you could pay anywhere between $14 and $765 for travel insurance. Solo travelers can expect to pay around $60-$100 for coverage. Travel insurance provides a range of protection before and during your trip.
What are the medical reasons for cancellation of flights? ›
Sickness, Injury or Death:
An injury, illness or death of you, your traveling companion, your traveling or non-traveling family member, your business partner or your destination host. This is the most common reason for trip cancellation.
How do I claim trip cancellation? ›
How to File a Claim for Trip Cancellation
- Before you cancel, check your plan documents. Please note that trip protection plans sold on our website are not “cancel for any reason” travel insurance. ...
- Notify your travel providers as soon as possible. ...
- Round up all your documentation. ...
- File your trip cancellation claim.
The most common covered reason is unforeseen illness, injury, or death of the traveler, a traveling companion, or a non-traveling family member. Other common covered reasons include terrorism, inclement weather, or a natural disaster, among others.
What are the three types of cancellation? ›
Cancellation methods are typically calculated using an online wheel calculator, a type of circular slide rule.
- Pro rata.
- Short Period Rate (old short rate)
- Short Period Rate (90% pro rata)
Some examples of covered reasons could be:
- 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.
Most basic travel insurance policies only cover cancellations under certain circ*mstances. Cancel For Any Reason add-ons let you do just that, but they can be pricey. It might make sense if you have uncertain plans and can't book refundable tickets or fares.
What is trip cancellation policy in travel insurance? ›
The trip cancellation coverage is essentially a pre-departure feature. In this, the travel insurance provider reimburses the cost of the non-refundable and pre-paid expenses like unused flight tickets and hotel bookings.
Trip cancellation kicks in if certain medical or non-medical events occur before you leave home, so you're reimbursed on all or some costs, depending on your coverage. Trip interruption reimburses you if a similar set of events occur after you leave home and during your trip and you're forced to return home.
What is an example of a cancel reason? ›
Examples of cancel reasons include: Event No Longer Happening. Room Requirements Changed. Found More Affordable Venue.
What are the types of cancellation reasons? ›
Cancellation Reason Types
- Decline by screening.
- Withdrawal.
- Insured death.
- Closed by Claim.
- Cancelled by client.
- Cancelled.
Simply saying no without an excuse is a skill that will serve you well if you're trying to stop overcommitting, and this is a cousin of that: For someone you don't know well, just say, “Hey, I'm so sorry but I can't make it tonight any more” and make the effort to reschedule, if you can.
Is it smart to get travel insurance? ›
Travel insurance can be useful, but it's not always necessary. The key to knowing if you need travel insurance is figuring out your specific risks for any given vacation, then deciding if you can buy coverage that adequately protects you from any financial losses and pitfalls that might occur.
Can I get a refund if I cancel my travel insurance? ›
If your travel insurance policy has a money-back guarantee or review period, you can cancel for any reason and receive a full refund within the timeframe if you haven't filed a claim or departed for your trip yet. But you won't get a premium refund if you cancel your policy after the review period.
