Unexpected events can derail your travel plans — but did you know that trip cancellation insurance can protect you from losing out on the money you spent?
Trip cancellation insurance provides financial protection against nonrefundable costs in certain situations. But if you don’t understand the limits of your coverage or how it works, you could end up with a denied claim (and lose thousands of dollars).
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Common Situations Covered by Trip Cancellation Insurance
Trip cancellation insurance can come in clutch in certain situations, like getting sick before you travel.
Here are a few other common scenarios where you can use use trip cancellation insurance to get your money back if you have to cancel a trip.
Medical emergencies
If you have a medical emergency before your trip, such as illness, injury, or a death that affects you directly (such as a close family member), you may be able to have part, or all, of your trip refunded.
For example, let’s say you book a vacation to Hawaii that costs $4,000 (including nonrefundable flights, hotels, and activities). But you then become hospitalized due to illness before your departure. In this case, you may be able to have all of your trip refunded.
Each trip cancellation insurance policy will have different criteria for what constitutes a “medical emergency,” so it’s a good idea to review the policy details before booking your trip.
Travel-related disruptions
You’ve booked the trip. You somehow packed everything and made it to the airport on time.
But then the snow starts. And it doesn’t stop! And you hear the announcement that your flight has been canceled. Sigh.
If your flight is canceled or a delay causes you to miss a connecting flight, trip cancellation insurance will cover any lost money in this situation.
This might include:
- Missed nights at a hotel
- Cost of booking a local hotel if you missed a connecting flight
- Rental car costs for missed days
- Flight costs for rebooking if missing a connecting flight due to delays
Other travel-related disruptions that are covered by trip cancellation insurance might include:
- Natural disaster at your departure or destination location
- Evacuation requiring your trip to be cut short
- The location you are traveling to becomes uninhabitable
As always, check your policy to see what travel-related disruptions are covered.
RELATED: Flight Canceled Due to Weather? Know Your Compensation Rights
Personal or professional emergencies
Sometimes life throws you a curveball and you simply can’t make the trip.
Incidents such as job loss, unexpected work obligations, or military deployment may require canceling a trip, and some policies will cover these circumstances.
Or you could receive a jury duty summons or be required to appear in court — both of which constitute personal emergencies that qualify for trip cancellation coverage.
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Situations Often Excluded from Coverage
Trip cancellation insurance doesn’t cover everything, and certain events or circumstances that cause you to cancel your trip may not be eligible for a claim.
Pre-existing medical conditions
If your condition is known and documented before you book your trip, it's not usually covered in most policies.
There may be a pre-existing medical condition waiver on your policy that allows you to be covered for medical trip interruptions, but you usually need to purchase a separate travel insurance policy within 14 to 21 days of booking your trip to qualify.
And not all pre-existing conditions are covered. Make sure to review your policy coverage for details.
Non-emergency cancellations
Most non-emergency cancellations aren’t covered in most standard policies. So if you change your mind and cancel your trip, you won’t be reimbursed for any nonrefundable expenses.
This may also include weather events that are known before booking, such as a named hurricane.
How To Ensure Your Situation Is Covered
If you don’t want to be denied for a trip cancellation insurance claim, make sure you understand exactly how the policy works.
Here are a few tips to ensure your situation is covered by your policy.
Read the policy carefully
Whether you’re booking your trip with a premium credit card that has trip cancellation insurance included, or purchasing a trip cancellation insurance policy, make sure to read the fine print.
Each policy has unique language on what is covered and what is excluded, so review the details to ensure you’re comfortable with the coverage.
If anything in the policy is unclear, reach out to the insurance company for clarification. It would be terrible if you thought you were covered for something, only to find out later that you aren’t when you try to use the policy.
Compare providers for flexibility
Not all trip cancellation policies are the same, so it’s a good idea to compare multiple providers and policies.
You can use an online platform like VisitorsCoverage to compare different options. Or review our list of the best credit cards with travel insurance to see which is best for you.
It’s also important to review the maximum coverage amounts, as some credit cards and policies offer more coverage per person and per trip.
Add on cancel for any reason (CFAR) insurance
Cancel for any reason (CFAR) travel insurance offers partial reimbursement for cancellations due to non-covered reasons.
For example, maybe you forgot to renew your passport or you need to reschedule your trip due to family obligations.
This type of insurance can be more expensive than trip cancellation insurance and usually has to be purchased within a specific time frame of booking your trip.
CFAR policies aren’t stand-alone — rather, they must be purchased as part of a general travel insurance policy. And the coverage usually only reimburses up to 75% of your nonrefundable expenses.
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FAQs About Trip Cancellation Insurance Coverage
Does trip cancellation insurance cover weather-related cancellations?
It might. If you booked a trip well before any weather event started forming, most trip cancellation insurance will cover you.
But if you book a last-minute trip in the middle of a snowstorm and the flight is canceled, most policies will say that you had access to knowledge of the weather event, and will deny your claim.
What counts as a “covered medical emergency”?
The definition of “covered medical emergency” may vary slightly from policy to policy. But in general, any illness or injury that is severe enough to cancel your trip (or requires hospitalization) will be covered.
Other medical emergencies include the death of a family member or travel partner, or if someone close to you becomes seriously ill.
What should I do if my claim is denied?
If you receive a denial for your trip cancellation insurance claim, you can usually appeal the denial directly.
You’ll need to submit supporting documentation that proves you had a valid reason for the trip cancellation. You’ll also need to address any reason that was given for the denial by the insurer.
At worst, you can take your case to small claims court if your appeal is denied.
TL;DR: Trip Cancellation Insurance Coverage
Trip cancellation insurance offers peace of mind when travel plans change unexpectedly, but knowing what’s covered is essential to avoiding any surprises.
Medical emergencies like sudden illness, personal emergencies like jury duty or job loss, and travel disruptions like natural disasters or severe weather are all valid claims under trip cancellation insurance.
But each policy will have its own variations, so make sure you choose the coverage that you’re most comfortable with.

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As a nationally recognized personal finance writer for the past decade, Jacob Wade has written professionally for Forbes Advisor, Investopedia, Money.com, Britannica Money, TIME Stamped, and other widely followed sites. He has also been a featured expert on CBS News, MSN Money, Forbes, Nasdaq, Yahoo! Finance, and AOL Finance. His background includes five years as an Enrolled Agent at an accredited CPA firm, where he prepared tax returns for individuals and small businesses.
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.