Does travel insurance cover trip cancellation?

 

When it comes to travelling, one of the most common concerns among users is the possibility of not being able to travel. This may be due to personal force majeure causes or because the service provider—for example, an airline—is obliged to do so. And it is in these situations when having travel insurance that covers trip cancellation is a welcome addition. If you are not familiar with it, this article is for you. Keep reading!

 

What does travel insurance cancellation coverage include?

The cancellation coverage in a travel insurance policy is a supplementary cover for travel assistance insurance. This is undoubtedly a very useful option for those who wish to be protected against the possible cancellation of a trip for various reasons.

Here are a few examples of some of the most common situations in which cancellation insurance might be necessary:

• A surgical intervention or the death of a close family member.
• Complications in pregnancy.
• The announcement of the competitive examinations we have been waiting for.
• A change in job status, either termination or starting in a new position.
• The cancellation of the trip by a fellow traveller.
• The cancellation of the trip by the service provider (airline, railway operator, bus company, etc.).

These are some of the most common reasons for cancelling a trip. Hence the importance of having the right coverage. In this respect, travel cancellation insurance guarantees the reimbursement of the expenses related to the cancellation. These include, among others, costs related to flights, train tickets, hotels, missed booked activities, etc.

Ultimately, cancellation insurance covers and compensates us if a trip is cancelled or interrupted due to unforeseen circumstances. Provided, of course, that the reason for the cancellation or interruption is included in the general conditions of the policy.

 

What does cancellation insurance include?

As for what travel cancellation insurance covers, the scope of the coverage will depend on the insurance company. However, in broad terms and to give you an idea, these are some of the grounds provided by the companies in the sector for the reimbursement of cancellation costs:

• Family-related reasons. Another possible reason for interrupting a trip is serious illness or the death of a family member.
• Medical reasons. As long as it is not a preexisting illness, reasons related to your health may be covered by cancellation insurance.
• Official reasons. Likewise, travel insurance considers the possibility that a person might have to cancel their trip because they are required to do so by a government authority on a date that coincides with their trip.
• Work-related reasons. Termination of employment, signing a new employment contract, transferring to another workplace or a justifiable change of leave are all events that are usually covered by travel insurance with cancellation coverage.
• Extraordinary reasons. Similarly, extraordinary circumstances, such as an accident in the home that requires urgent attention, are a compelling reason to cancel a trip.

Additionally, travel insurance with cancellation coverage might include other situations such as the loss of documentation or the inability to travel as a result of a malfunction of the insured party’s vehicle. In any case, as already mentioned, the final scope of the policy will depend on what is stated in the general conditions.

We hope that you now have a better idea of what is covered by travel insurance with these characteristics. By the way, did you know that Adeslas travel assistance insurance includes cancellation by the service provider and the possibility of taking out coverage for trip cancellation due to annulment? Thanks to this guarantee, the insured party has the right to be reimbursed provided that the conditions of the contract are met. Find out more!

 

Does cancellation insurance cover 100% of the costs

We hope that up to now we have helped you understand what travel cancellation insurance includes. With regards to the percentage of the annulment costs covered, it will vary depending on the policy and the company; while some insurance companies offer full reimbursement, others only cover a part of it.

 

Does travel insurance cover cancellation for any reason?

With travel cancellation insurance, we can therefore recover all or part of the money spent, depending on the stipulations of the policy and the reasons that led us to cancel our trip. Usually they are force majeure reasons, which are those that cannot be foreseen or avoided, and which we have already addressed in the section about what a cancellation insurance policy covers.

Indeed, like other types of policies, travel cancellation insurance also includes exclusions. They generally do not cover the following events:

• Acts of bad faith or intent on the part of the insured party.
• Voluntary cancellation of the trip without a justifiable reason.
• Knowledge of conditions or situations that might lead to the annulment of the trip before taking out the insurance. Such as, for example, suffering from a serious illness.
• The occurrence of predictable or known events. An example is an airline strike announced before the insurance was taken out.

 

Types of travel cancellation insuranc

Each insurance company offers a different type of travel cancellation insurance. As you can seen below, not all insurance policies are the same:

• Direct or optional contracting. At some companies you can contract cancellation insurance directly, while at others it is an optional cover.
• Different rates. At insurance companies that offer cancellation insurance, you can choose from standard or basic to premium rates.
• Coverage scope. The number of causes covered varies between different rates: while some insurance policies cover 20 causes, others include over 30.
• Compensation. The amounts received for cancellation differ greatly depending on if the trip has begun or not, if it takes places within Spain, Europe or the rest of the world, etc.

 

When to take out travel assistance insurance

oncerning when to contract travel assistance insurance with cancellation coverage, it is recommendable to take out this type of policy before starting the journey. It can also be done after the trip has begun, but it is important to know that each insurer establishes a maximum period for this.

We hope that you now have a better understanding of what travel cancellation insurance is and what it covers. And remember, Adeslas travel insurance covers from medical expenses to costs incurred due to airline delays caused by overbooking, among other incidents. If you like, you can also personalise your insurance policy with the optional guarantee of travel insurance for trip cancellation due to annulment. This will help you sleep peacefully before travelling!

 

Frequently asked questions