How To Compare Trip Cancellation Insurance Providers

Not all trip cancellation policies are the same — knowing how to compare providers can save you money and ensure your coverage fits your travel needs.

There are varying policy options, coverage limits, and costs depending on the provider you choose — and choosing the wrong provider could leave you with insufficient coverage or a denied claim.

What To Look for in Trip Cancellation Policies

When comparing trip cancellation policies, here are a few details you want to look for.

Coverage limits and flexibility 

Most trip cancellation policies — whether through your credit card or travel insurance — come with coverage limits. 

Compare policy limits so you pick one with enough coverage for your trip. Look for a policy that reimburses 100% of your nonrefundable trip costs if you need to cancel (for covered reasons).

Speaking of, you’ll want to review the list of covered reasons for canceling a trip. For example, different policies may have different criteria for who classifies as a “family member,” if you need to cancel because a family member is sick.

Finally, find a policy that covers medical emergencies, weather delays, and other trip disruptions.

Add-ons and special features 

Some travel insurance policies allow you to add optional features. This gives you more flexibility and may include events not normally covered by a traditional policy. 

Here are a few examples:

• Cancel for any reason (CFAR): Get partial reimbursement (usually 70% to 80%) for nonrefundable travel expenses. You can cancel your trip for any reason — including simply changing your mind.
• Adventure and sports coverage: Plan on taking some risks on your trip — say, skydiving? This covers medical evacuation, cancellation due to activity-related illness (such as altitude sickness), or other extreme activity trip disruptions.
• Pre-existing condition waivers. Get coverage even if you have to cancel a trip due to a known medical reason.

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Key Differences Between Providers

While travel insurance providers offer similar trip cancellation policies, there are a few key differences.

Pricing and premium structures 

Most travel insurance providers offer trip cancellation coverage as part of a standard policy. But there are differences in how they structure their policies and pricing.

For example, World Nomads offers four different policy tiers. Their Standard plan only covers up to $2,500 for trip cancellation and interruption, while their Epic plan covers up to $15,000. 

Meanwhile, Allianz Travel Insurance also offers both basic and premium tier plans, but their Premier plan’s trip cancellation coverage goes all the way up to $200,000.

But a premium policy will also charge a much higher price for more coverage — which may not be worth it for your trip.

Exclusions and restrictions 

Every insurer that offers trip cancellation insurance has a list of covered events — as well as a list of exclusions. 

Often insurers won’t cover things like:

• Canceling due to pre-existing conditions
• Specific high-risk activities (like mountain climbing)
• Destination-specific risks (such as trip disruption due to an active volcano)

Review each trip cancellation insurance policy to make sure you’re comfortable with the types of events that are (and aren’t) covered. 

You could also consider policy add-ons if you need more flexible coverage.

Steps To Compare Trip Cancellation Providers

Here’s the best way to compare several trip cancellation policies and providers:

Use online comparison tools

There are some very useful online comparison tools. For example, VisitorsCoverage allows you to view dozens of policies side-by-side to compare the coverage options and amounts quickly.

These tools allow you to input your travel itinerary, the expenses you wish to be covered (flights, hotels, excursions, etc.), and any add-ons you prefer. 

Read customer reviews and claims policies 

Check insurance company reviews to find out if others have had a positive experience with the company. You want a provider with transparent pricing and coverage, as well as a strong customer support team.

Google reviews allow you to see ratings and read individual reviews, and sites like TrustPilot will collect and rank reviews for individual companies as well. 

Focus on your travel type and destination

When comparing providers, it’s important to find one that offers coverage for your specific trip. For example, if you plan on going heli-skiing on a remote mountain, you’ll want a provider that offers adventure and sports insurance. 

Travel insurance is also destination-dependent. If you plan on traveling internationally, make sure you review providers that offer coverage in the location you’re heading to.

READ MORE: How To Choose the Right Trip Cancellation Policy

Common Pitfalls To Avoid When Comparing Providers

When you’re comparing trip cancellation insurance policies, here are a few pitfalls to watch out for:

Choosing solely based on price 

While finding a cheap trip cancellation policy may feel good in the moment, many low-cost plans exclude important coverage (such as medical evacuation) and have much lower reimbursement limits. This can end up costing you more in the long run.

Instead, compare several policies that have coverage limits you’re comfortable with and offer the types of coverage you need. For example, a low premium may mean lower coverage limits, but you might not need $1 million in trip cancellation insurance.

Ignoring exclusions and fine print 

If you only look at the highlights, you might miss some important information. While most policies will show you the coverage amounts and features upfront, you’ll have to dig a bit to find what’s excluded from the policy.

Make sure to find the excluded events as well as the coverage limits. For example, some providers exclude weather-related cancellations. If you choose this policy and have your trip canceled because of a blizzard, you may not be covered.

Tip: You might need to dig into the policy’s terms and conditions or look for FAQs on the provider’s website. 

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FAQs About Trip Cancellation Plans

Do all providers offer cancel for any reason (CFAR) as an add-on?

No, not all providers offer CFAR add-ons. You’ll need to look up specific plans and providers if you want to include CFAR. 

How do I check the reliability of a provider’s claims process?

Research user reviews for a policy — specifically ones that mention the claims process. Look for words like “responsive,” “fast,” and “easy.” 

You can call the company directly to understand how the claims process works — including timelines on how quickly things are resolved. 

Are there providers that specialize in specific trip types (e.g., cruises, adventure travel)?

Yes, some travel insurance providers offer adventure and sports travel insurance, as well as policies for other types of travel such as a cruise. 

You may need to have a general travel insurance policy in place first and add the specific coverage as a policy add-on.

TL;DR: Comparing Trip Cancellation Policies

When comparing trip cancellation providers, focus on coverage limits, exclusions, and customer service. And don’t skip the fine print!

Being properly insured won’t just protect your money — it’ll also give you peace of mind so you can better enjoy your trip.

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