Do You Really Need ‘Cancel for Any Reason’ Insurance?

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When you schedule a trip, the hope is that you’ll be able to go, right? But in reality, sometimes things come up and you just can’t make it. 

In those unfortunate situations, we can at least be sure to protect ourselves from the additional burden of having to foot the bill for a trip we couldn’t take –AKA travel insurance. When you book your travel and start to look for the right travel insurance package, there are two main types of cancellation travel insurance options available to you. Here’s what you need to know:

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Trip Cancellation Insurance

This type of travel insurance generally comes with any comprehensive trip insurance plan. It protects your insured nonrefundable trip costs under the following specific circumstances:

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A doctor determines that you have an illness that prohibits you from traveling

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Your travel companion passes away unexpectedly 

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A family member who isn’t traveling with you is hospitalized or passes away

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There is inclement weather or a natural disaster in your place of origin or destination makes it impossible or unsafe for you to travel (make sure you check this one out–it can vary from policy to policy)

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You’re called for jury duty or have to appear in court during your scheduled travel time

The most critical thing to keep in mind if you need to cancel for one of these reasons is that the circumstances described above must be unforeseen for it to be covered by travel insurance. If a potential storm has been named in the area to which you’re traveling, for example, you won’t be reimbursed for canceling that trip if the storm does end up happening. The second most important thing to know is that in order to qualify for reimbursement under regular Trip Cancellation coverage, you’ll need documentation from a relevant professional in order to get a refund. If you can get that, you can file for reimbursement for 100% of any prepaid, non-refundable expenses. 

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Cancel for Any Reason Insurance

If you’re looking for a bit more cancellation coverage than you get with Trip Cancellation insurance, there’s another option available to you: Cancel for Any Reason coverage. So what does this mean and is it worth it? Here are our thoughts…

Cancel for Any Reason travel insurance costs a bit extra, but it offers quite a bit more coverage than your standard insurance package or even Trip Cancellation insurance. With this add-on, you can literally cancel for ANY reason. If you no longer want to travel to your destination, feel uneasy about what you have planned, or get backed up at work, you can cancel your travels and receive a partial repayment. That said, there are some important stipulations to understand:

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You have to purchase Cancel for Any Reason insurance within 10-21 days of your initial trip deposit date, depending on the plan–make sure you check and take care of it in that time-frame to be eligible for coverage!

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In order to be eligible for compensation, you have to account for and insure ALL pre-paid, non-reimbursable trip costs in advance.
ic_circlecheckblue If you decide to cancel your travels, you have to do so at least 48-72 hours prior to your trip departure–make sure you know the exact limit for your travel insurance cancellation coverage.
ic_circlecheckblue If you cancel, you’ll be refunded a portion of the pre-paid, non-refundable trip payments, rather than 100% of it. Generally, this portion is around 75% of what you had insured.

If you have any reason to think you might have to cancel your trip for a reason that is not covered by standard Trip Cancellation insurance, go for the Cancel for Any Reason coverage. It’ll cost more in the short-term, but it’ll save you a lot in the long run if you end up needing to cancel.  

Ready to find the right travel insurance for your trip? Try our free quote tool here to get started and then reach out to us if you have questions or want to talk it through! 

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