Trip cancellation insurance may reimburse prepaid, nonrefundable travel expenses if you cancel for a covered reason before departure. It’s usually included in a comprehensive travel insurance plan, along with benefits for problems that happen during your trip.
Before buying a plan, find out what cancellation reasons are covered and how much of prepaid expenses you can recoup. If you want flexibility to cancel because you’ve changed your mind, consider optional Cancel for Any Reason (CFAR) coverage.
What Does Trip Cancellation Insurance Cover?
Trip cancellation coverage applies to eligible expenses you paid before your trip that you can’t get back when you cancel. These might include flights, hotel reservations, cruise fares, tours, and nonrefundable deposits.
The reason you cancel must meet the policy’s requirements. Common covered reasons may include:
- Illness or injury: A qualifying medical issue affecting you, a traveling companion, or a family member.
- A death: Policies specify whose death qualifies, including how they define a family member.
- Severe weather or a natural disaster: The event must meet the plan’s conditions, such as making your destination uninhabitable or if your carrier suspends service for a specific period, such as 24 hours.
- Your home becoming uninhabitable: A qualifying event that prevents you from taking the trip.
An illness-related cancellation typically requires medical documentation. A weather-related claim depends on the actual disruption, rather than an unfavorable forecast alone.
What Doesn’t Trip Cancellation Insurance Cover?
Standard trip cancellation generally doesn’t cover:
- Changing your plans by choice: Changing your mind, feeling uneasy about traveling, or deciding you’d rather spend the money elsewhere.
- Known events: Buying a policy after a hurricane has been named generally won’t provide cancellation coverage for that storm.
- Certain pre-existing medical conditions: Claims related to these conditions may be excluded unless you qualify for a pre-existing condition exclusion waiver.
Read the policy’s exclusions alongside its covered reasons to understand when reimbursement may apply.
InsureMyTrip Tip: If you want a policy that allows you to cancel for any reason, look for cancel for any reason (CFAR) coverage. This type of policy costs more than standard trip cancellation insurance but gives you more flexibility if you want to or need to cancel your travel plans.
Trip Cancellation vs. Cancel for Any Reason Insurance?
Standard trip cancellation requires a covered reason. CFAR insurance is an optional upgrade on some comprehensive plans that lets you cancel for reasons outside that list.
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What to compare |
Standard trip cancellation |
Optional CFAR |
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Reason for canceling |
Must be covered by the policy |
Broader flexibility, including changing your mind |
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Reimbursement |
May reimburse up to 100% of eligible insured costs |
|
|
Purchase timing |
Must meet the plan’s purchase requirements |
|
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Cancellation timing |
Before departure, subject to policy terms |
Usually at least 48 hours before departure; some plans require 72 |
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Price |
Usually included in a comprehensive policy |
Typically adds 40% to 50% to the cost of your travel insurance. |
How Much Does Trip Cancellation Insurance Cost?
Travel insurance generally costs about 4% to 10% of your prepaid, nonrefundable trip cost, according to InsureMyTrip’s travel insurance cost guide. Cancellation insurance is included in that cost (along with other benefits).
For a trip with $5,000 in insured expenses, that range works out to approximately $200 to $500. Your quote may fall outside that range.
Factors that affect trip cancellation insurance costs include:
- The amount of trip costs you insure
- Travelers’ ages
- Trip length and destination
- The plan and coverage limits
- Optional upgrades, such as CFAR
Compare quotes using the same travelers, dates, and trip costs so you can compare prices more easily.
You don’t necessarily have to wait until every reservation is booked. Many plans allow you to update the insured trip cost as you make additional payments. Check how quickly those new expenses must be added.
If you’ve already booked, standard cancellation coverage may still be available before departure. However, CFAR and other early-purchase benefits may no longer be available. A new policy also won’t retroactively cover a cancellation event that has already happened.
When Should You Buy Trip Cancellation Insurance?
Buying shortly after your first trip payment gives you more time with cancellation protection in place and may help you qualify for time-sensitive benefits.
You don’t necessarily have to wait until every reservation is booked. Many plans allow you to update the insured trip cost as you make additional payments. Check how quickly those new expenses must be added.
If you’ve already booked, standard cancellation coverage may still be available before departure. However, CFAR and other early-purchase benefits may no longer be available. A new policy also won’t retroactively cover a cancellation event that has already happened.
How Do You Compare Trip Cancellation Insurance Plans?
Start with the expenses you could lose if you cancel, then compare each plan’s coverage, requirements, and price.
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What to compare |
What to look for |
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Nonrefundable trip costs |
Review each booking’s cancellation deadlines and the amount you could lose. Check how to update your insured trip cost as you make additional payments. |
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Covered cancellation reasons |
Check whether the policy addresses your concerns, such as a family member’s illness. Review relevant definitions, exclusions, and required documentation. |
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Pre-existing condition rules |
If a waiver is available, check its purchase deadline, trip cost requirements, and medical eligibility rules. Review how the policy treats family members who aren’t traveling with you. |
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Coverage and price |
Compare cancellation limits and other included benefits. Confirm whether the quote includes any optional upgrades you want, such as Cancel for Any Reason coverage, and whether you qualify. |
How Do You File a Trip Cancellation Claim?
Contact your insurer as soon as possible if you need to cancel. Cancel your travel arrangements with the suppliers, keep their confirmations, and follow your policy’s notice and filing deadlines.
Depending on the claim, you may need:
- Booking confirmations and proof of payment
- Cancellation terms and records of refunds
- Documentation of the reason you canceled
- Medical records or a physician’s statement for an illness-related claim
You file the claim directly with your insurer. If you purchased through InsureMyTrip, its claims assistance resources can help you understand the process.
Is Trip Cancellation Insurance Worth It?
It may be useful when you have substantial nonrefundable expenses and would have difficulty absorbing the loss. If most bookings are refundable, cancellation coverage may be less valuable to you.
Before buying trip cancellation, review any existing cancellation benefits, including those offered by your credit card. Then compare travel insurance plans through InsureMyTrip using your trip details, and read the policy for any concerns that could affect your decision.
Frequently asked questions about trip cancellation insurance
Can I buy trip cancellation insurance after booking my trip?
Typically, yes. Many plans can be purchased after booking and before departure. However, buying shortly after your first trip payment may help you qualify for time-sensitive benefits, such as Cancel for Any Reason coverage or a pre-existing condition exclusion waiver. A new policy won’t cover a cancellation event that has already happened.
Does trip cancellation insurance cover changing my mind?
Standard trip cancellation generally doesn’t cover changing your mind. Optional Cancel for Any Reason coverage may provide partial reimbursement if you meet its purchase, trip cost, and cancellation timing requirements.
Can I cancel because a family member gets sick?
If a family member gets sick, you might be able to cancel, even if they aren’t traveling with you, but it depends on the plan and how it defines qualifying family members. Check the policy’s definition of “family member,” medical documentation requirements, and any pre-existing condition exclusions.
Does trip cancellation insurance reimburse the full trip cost?
For an approved claim, standard trip cancellation may reimburse up to 100% of eligible insured, prepaid, nonrefundable expenses, subject to the policy’s limit. Expenses refunded by a travel supplier aren’t reimbursed again. CFAR generally reimburses only 50% to 75% of eligible costs, depending on the plan.
What’s the difference between trip cancellation and trip interruption?
Trip cancellation applies when a covered event prevents you from taking your trip before departure. Trip interruption applies after your trip begins and may help reimburse eligible unused expenses and additional transportation costs if a covered event cuts your trip short.
Can you buy trip cancellation insurance only?
Trip cancellation is commonly bundled into a comprehensive travel insurance plan. If you’re looking for trip cancellation insurance only, check what each available policy actually includes rather than assuming you can remove the other benefits.
