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Travel Insurance that Covers you for Holiday Cancellation

Learn more about cancellation cover and how it can help you.

Cancellation cover is one of the primary reasons people purchase travel insurance because no one wants to be disappointed and deal with out-of-pocket expenses if they are unable to go on their long-awaited vacation.

This article will give you the details of trip cancellation coverage, how it helps you, and what the exclusions are.

What Is Trip Cancellation Coverage?

As much as we don’t want to think about it, unexpected situations can happen, forcing us to cancel our dream vacation. With travel insurance, you don’t have to worry about such situations, as many travel insurance plans have cancellation coverage. Cancellation coverage as part of your travel insurance cover the cost of your holiday up to a specific amount should you need to cancel your plans for certain reasons. In other words, if you cannot go on your holiday, you can refund the expense of your trip up to the full cover limit.

The reasons for cancelling and receiving compensation differ by plans and insurers, as does the amount you can take back. You’ll need to double-check your policy documents to make sure you get enough coverage.

Key Points

  • Cancellation coverage as part of your travel insurance cover the cost of your holiday up to a specific amount should you need to cancel your plans for certain reasons.
  • Purchasing travel insurance with trip cancellation coverage is the best protection you can get when it comes to booking a holiday.
  • There many processes and some exclusions for file the claim.

Do I Need Trip Cancellation Coverage?

Since no one can predict the future, it’s better to be safe than sorry. Purchasing travel insurance with trip cancellation coverage is the best protection you can get when it comes to booking a holiday.

You may have spent weeks organising your dream holiday and spent months saving your money to afford it, then all of a sudden, you fall unexpectedly ill, and you have to cancel everything. Without the right policy in place, you might have to cancel it with no compensation for the cost. However, if you have cancellation cover, you will be able to reclaim all or at least some of it. Remember, illness and injury are unavoidable; without cancellation cover, you will be left out of pocket if you can no longer travel.

Keep in mind that you have to purchase travel insurance as soon as you’ve booked your vacation to make sure that you are covered immediately should the unwanted occur.

What Does Trip Cancellation Coverage Protect Me From?

Trip cancellation coverage protects you from the financial loss that you may suffer if you have to cancel your holiday due to unforeseen circumstances. The cost of your holiday that it covers generally include the following:

  • Pre-booked and pre-paid transport, such as plane or train tickets.
  • Pre-booked and pre-paid accommodation, including hostels, hotels, and campsites.
  • Other pre-booked and pre-paid expenses, such as tours and excursions.

It is important to note that your insurer won’t cover you if you just change your mind about the holiday. You need to have a valid cause if you want to be reimbursed for your trip cancellation. Most insurers in Thailand will pay out if your cancellation results from one of the following:

  • You have an accident that makes you unable to travel.
  • The destination is declared unsafe to visit.
  • A fire or flooding occurs at your home.
  • You or your family member fall severely ill or injured.
  • You need to attend a funeral.

Different insurers offer different levels of cover. Therefore, make sure to read the policy carefully and read the fine print.

Trip cancellation coverage will protect you from the moment you purchase the policy.

When Does Trip Cancellation Coverage Start?

Unlike other travel insurance coverage that starts when you’re on your vacation, your trip cancellation coverage will immediately begin from the moment you purchase the policy. That’s why you might want to consider buying travel insurance right after you book your vacation.

Trip cancellation coverage protects you from the financial loss that you may suffer if you have to cancel your holiday due to unforeseen circumstances.

What Are The Exclusions of Trip Cancellation Coverage?

Like other types of coverage, trip cancellation coverage also has exclusions. For example, if you got injured under the influence of alcohol or drugs, you will not be covered for cancellation. Below are some of the common exclusions:

  • Any expenses reimbursed or refunded by your hotel, airline, travel agency, or other service providers.
  • You are arrested or detained for breaking the law or being a suspect.
  • Your injury is caused by alcohol or drugs.
  • You simply changed your mind and wanted to cancel the trip.

What If I Want To Cancel My Trip Due To Reasons Not Covered By Trip Cancellation Coverage?

If you want to cancel your trip due to reasons not covered by your travel insurance, you will not be reimbursed. However, you can consider taking Cancel For Any Reasons add-on, which allows you to cancel your trip for any reason you want. Regardless of the reason, you should be able to cancel if you are outside a certain period of time before your trip.

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