From unexpected cancellations to last-minute emergencies, a lot can change between the time you make your travel plans and your actual travel dates.
Thankfully, there’s something called trip cancellation insurance, which can give you peace of mind and financial protection when you’re planning a trip.
Why Planning With Cancellation Insurance Is Important
Just like you buy car insurance to protect against a potential car accident and home insurance to protect against storm damage, trip insurance protects you from the many unknowns that life can throw at you.
When purchasing trip cancellation insurance, timing is key. The earlier you purchase protection, the more potential risks you can insure against.
It’s common for travelers to purchase cancellation insurance at the last minute, but this can make you lose out on a lot of benefits. The insurance only goes into effect after you purchase it, so you can’t wait until something changes in your plans — you must buy cancellation insurance before you need it.
If you end up not needing it at all, at least you had peace of mind that your trip was protected. Insurance protects you from the “what ifs.”
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- VisitorsCoverage
Compare policies and get quotes for your trip. - World Nomads
Tiered policies and optional CFAR add-on. - Chase Sapphire Preferred® Card
Includes cancellation protection for eligible purchases.
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Features to Consider With Cancellation Insurance
Deciding what to prioritize when selecting travel cancellation insurance is largely personal and depends on what your trip entails and your specific concerns.
But here are some factors to consider:
- The time of year you are traveling. During busier travel times such as the holidays, getting trip delay (in addition to cancellation) coverage might be smart. In some cases, a delay can cost you a lot in missed prepaid hotel bookings, excursions, etc.
- Geographic risks. Consider both natural disasters and political risk. If you’re visiting an area that’s politically unstable or going to see a volcanic eruption up close, check that your policy will cover cancellations if things turn bad.
- Climate patterns for where you are traveling. If you’re headed somewhere prone to blizzards and it’s the middle of winter, you want to make sure your coverage includes weather-related cancellations.
- Which expenses are nonrefundable. Not everything needs coverage. For example, it wouldn’t make sense to pay for additional insurance for an excursion that is already refundable in bad weather.
- Flexibility to cancel for any reason. If your travel plans are a bit up in the air, you can add “cancel for any reason” (CFAR) insurance, which doesn’t limit you to specific unavoidable situations. For example, you could simply change your plans, and the nonrefundable costs of your trip would be covered. If you do add CFAR coverage, know there are limits as to when it can be added.
READ MORE: How To Choose the Right Trip Cancellation Policy
Buy Insurance as Part of Your Trip Planning
It’s easy to forget about insurance when you’re planning a big adventure, but timing is key. Your best bet is to purchase cancellation insurance as soon as you make your travel plans.
Don’t wait too long, because the timeline is what will determine if you are covered or not. Cancellations or delays that occur before you purchase insurance won’t be covered — so purchase it early in your trip planning stages.
Also make sure to understand the limitations of your selected policy. Some don’t cover pre-existing conditions, such as in the case of illness for 60 days prior to purchasing the plan.
Choosing a trip cancellation provider
Just like there are many coverage options, there are also many providers.
When determining a budget for your trip (including cancellation insurance), compare policies across multiple providers. You can get a quote online after answering some basic questions about your trip.
There are also online marketplaces like VisitorsCoverage that include detailed information about different providers’ plans and what they do and don’t cover.
Comparing plans from a mix of providers will help you choose the best fit for your situation.
And don’t forget that many credit cards include different levels of travel insurance. If you’re paying for your trip on a credit card, you may already have benefits you don’t realize!
For example, if you have the Chase Sapphire Preferred® Card, travel cancellation insurance is already included, covering up to $10,000 per person for illness and weather-related cancellations.
Chase Sapphire Preferred® Card
Rewards Rate
- 5x on travel purchased through Chase Travel℠
- 3x on dining, select streaming services and online groceries
- 2x on all other travel purchases
- 1x on all other purchases
Welcome Offer
Earn 60,000 bonus points after $4,000 in purchases in your first 3 months from account opening.
Annual Fee
$95
. . .
FAQs About Trip Cancellation Insurance
Can I adjust my coverage if my trip costs increase after the initial booking?
Most travel cancellation policies are flexible and will allow for changes to be made prior to the trip taking place.
However, changing your coverage will likely result in your premiums changing as well. If you want to cover higher trip costs, that will likely cost you more.
There are some aspects of your coverage that cannot be changed and would have to result in a new policy.
Does cancellation insurance cover rescheduling trips?
It is possible, but it depends on the details of your plan and the reason for the rescheduling/delay. Some plans may cover rescheduling if it’s for a valid reason covered under the plan.
The best way to ensure costs are covered from rescheduling is to purchase a CFAR add-on to your plan.
TL;DR: Trip Cancellation and Travel Planning
With the cost of travel these days, ensuring you are protected from unexpected cancellations is a wise way to plan.
Make sure to align your plan coverage with your trip, including destination, duration, and any nonrefundable costs. Things can pop up at any time and trip cancellation is one of those things you may not think you need — until you actually need it!
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Disclosure: Opinions expressed here are the author's alone, not those of any bank, credit card issuer, hotel, airline, or other entity. This content has not been reviewed, approved or otherwise endorsed by any of the entities included within the post.
