Terms apply to American Express benefits and offers. Enrollment may be required for select American Express benefits and offers. Visit americanexpress.com to learn more.
If you travel often, you may have had to cancel a trip due to an unforeseen circumstance like a sudden injury, a nasty illness, or a hurricane that made you reconsider your paddleboarding adventure.
In all three cases, a trip cancellation insurance policy might reimburse you for 100% of your prepaid, nonrefundable expenses. That could include your flight, accommodations, and even your paddleboard lessons.
Here’s what you need to know about what it covers, what it doesn’t cover, and how to get one through your credit card.
. . .
What Is Trip Cancellation Insurance?
Trip cancellation insurance is a special type of insurance that can help protect your prepaid, nonrefundable travel expenses if you need to cancel your trip because extenuating circumstances prevent you from going.
For example, let’s say you book a cruise with your sister, but the day before you leave, she sprains her ankle on a hike. It’s obviously way too late to cancel with the cruise line, and you won’t go without her, so it appears you’re out of luck (and $8,000).
Or are you?
Thankfully, knowing your sis is a magnet for bad luck, you had the foresight to get some trip cancellation insurance. And since “Accidental Bodily Injury of You or a Travel Companion” is listed as a covered reason, you file a claim, receive compensation for the trip, and rebook it later when your sister is healed.
Trip cancellation insurance can also cover:
- Sickness
- Flight cancellations or delays
- Legal obligations (e.g., jury duty)
- Named storm warnings (e.g., Hurricane Helene)
- Sickness or death of a family member
- And more
There’s also a popular add-on called CFAR (cancel for any reason) that covers, well, pretty much anything. But it comes with caveats. (More on that later.)
How trip cancellation insurance works
Let’s say you've planned a $4,000 trip to Bali. You've already purchased flights, hotels, and a tour of the Sacred Monkey Forest Sanctuary — all using a credit card with complimentary trip cancellation insurance, such as the Chase Sapphire Preferred® Card.
But then you get called for jury duty 30 days before departure.
Womp womp. I mean, fulfilling your civic duty is great and all… but… monkeys…
Fortunately, trip cancellation insurance usually covers legal obligations like jury duty and subpoenas.
The process of filing a trip cancellation insurance claim typically entails:
- Calling your provider to start the process
- Canceling your plans to collect as many refunds as you can get
- Collecting documents like receipts, doctor’s notes and more
- Filing your claim and waiting roughly two weeks for a response
It may take a month or two to get reimbursed, but at least you have your money back and can rebook your trip to the monkey sanctuary another time.
Erika Recommends
- VisitorsCoverage
Flexible and comprehensive travel insurance plans. - Chase Sapphire Preferred® Card
Strong travel rewards and protection benefits. - The Platinum Card® from American Express
Premium card with high trip protection limits.*

. . .
What Trip Cancellation Insurance Covers
Trip cancellation insurance varies by provider and policy type, but most plans will cover:
- Serious illness or injury. You or a traveling companion gets diagnosed with an illness or injury that prevents you from traveling.
- Family medical emergency. You or your travel companion’s immediate family develops a serious condition that requires hospitalization, leading you to cancel your trip.
- Death. There’s a death in the immediate family of you or your travel companion.
- Severe weather. A named storm or some other form of severe weather prevents you from beginning or continuing your trip.
- Inhospitable destination. Your destination lodgings (e.g., hotel, hostel, family home) are uninhabitable due to fire damage, lack of safety measures, black mold, etc.
- Threat to permanent residence. You or your travel companion’s own home becomes uninhabitable before or during your trip, causing you to cancel.
- Legal proceedings. You or your travel companion is required by law to appear in court during the time of your trip.
- Military duty. You or your travel companion receive military orders that conflict with your travel plans.
- Terrorism. A terrorist event happens near your home or your travel destination(s).
- Strike. An employee strike somehow disrupts your travel itinerary and the travel supplier offers no compensation.
Depending on the provider, some plans might also cover:
- Car accidents
- Vehicle breakdowns
- Job loss/relocation
- Stolen passports
- Refused visas
- Multi-day tour event cancellation (e.g., Fyre Fest)
- A destination host canceling due to a family emergency
And more. But again, the scenarios covered by trip cancellation insurance can greatly vary by provider and plan, so be sure to read the policy documents carefully and ask lots of questions before committing to a specific plan.
. . .
What isn’t covered (and why)
Trip cancellation insurance is designed to cover “sudden and unforeseen” circumstances that cause you to miss your trip.
By extension, if something was foreseeable, preventable, or simply inconvenient, it likely won’t be covered.
Here are some common circumstances that trip cancellation insurance typically won’t cover:
- Pre-existing conditions. Any sickness, injury or medical condition that was prevalent prior to the date your policy went into effect. That often includes pregnancy, so check with your provider.
- Unsafe or unstable destinations. Travel insurance providers typically maintain a list of destinations they won’t cover under any circumstances, like Afghanistan, Ukraine, and Syria.
- Missing documents. You or your travel companion forgets to renew your passport or get the necessary visas to travel.
- Canceled weddings. The couple cancels the wedding after everyone has booked travel.
- Break-ups. You and your travel companion break up just before traveling.
- Crummy (but safe) weather. The forecast is a bummer (e.g., raining all week during a surfing trip) but it’s still safe enough to travel to your destination.
- Predictable severe weather. You book a flight to the Bahamas after a named hurricane has already been scheduled for your travel dates.
- Injury resulting from high-risk behavior. Injuries caused by drugs, alcohol, or extreme activities like skydiving
- Delays under 24 hours. A delayed flight causes you to miss Day 1 of your trip. In that case, your provider may reimburse you for your Day 1 arrangements and/or compensate you for alternative transportation, but not for the entire trip.
- Acts of war. Your destination country declares (or is the target of) an official act of war as opposed to a terrorist attack.
- Criminality. You or your travel companion is arrested, convicted of a crime, or sentenced to jail.
As you can see, the line between what is and isn’t covered by trip cancellation insurance can be hazy. After all, bonafide acts of war can feel pretty “sudden and unforeseen” unless you work at the Pentagon.
So to plug the gaps in coverage, many travelers opt for a special add-on to trip cancellation insurance called CFAR.
Cancel for any reason insurance (CFAR)
As the name implies, cancel for any reason insurance (CFAR) allows you to cancel your non-refundable travel expenses for virtually any reason, including those not covered by your regular trip cancellation insurance.
That list of reasons can include, but certainly isn’t limited to:
- Losing or forgetting to renew your passport
- Family or work obligations
- Your travel companion flakes out on you
- Starting (or losing) a job
- Safety concerns
- Forgetting to get the recommended vaccines
- Deciding you can no longer afford the trip
That said, CFAR has its limitations.
For starters, it’s expensive. Adding CFAR to your existing trip cancellation insurance can increase your premium by 40% to 50% on average.
On top of that, CFAR will typically only reimburse you for 50% to 75% of your non-refundable travel expenses.
Finally, most CFAR policies require you to cancel your plans and notify all travel suppliers at least 72 hours prior to departure. So when Cameron Diaz romantically abandoned her flight to stay with Jude Law at the end of The Holiday, she probably had her CFAR claim denied.
Despite its limitations, CFAR insurance might be a good investment if your travel plans are especially vulnerable to the “not covered” list of reasons above.
Specifically, here are a few travel groups that might benefit from additional CFAR coverage:
- Travelers with pre-existing conditions. I have bad knees, so I might consider purchasing CFAR before a long hiking trip in case my knees act up right beforehand.
- Athletes and adventurers. If your lifestyle makes you naturally prone to injuries that aren’t covered by trip cancellation insurance, CFAR could be a good idea.
- Young families. Toddlers catch an average of about seven colds a year, according to the Mayo Clinic, but regular trip cancellation insurance may not cover a common cold.
- Travelers in new relationships. If you’re planning an expensive getaway with an exciting new flame, you might want to consider CFAR just in case you break up before departure.
- Business travelers. If you’re traveling for a conference or a client meeting that might get canceled, CFAR can help your business recoup some lost travel expenses.
How To Choose the Best Trip Cancellation Policy
By following these three steps, you can ensure your next big trip is adequately protected.
1. See if your credit card already provides trip cancellation insurance
These days, many of the top-ranked credit cards actually include trip cancellation insurance as a benefit.
That means if you book a qualifying trip using your card, you might already be covered.
Here are just some of the credit cards that include complimentary trip cancellation insurance:
- Chase Freedom Unlimited®
- Chase Freedom Flex®
- Chase Sapphire Preferred® Card
- United Club℠ Infinite Card
- World of Hyatt Business Credit Card
- The Platinum Card® from American Express*
- Hilton Honors American Express Aspire Card*
- Wells Fargo Autograph Journey Card
Keep in mind that coverage limits can vary greatly by card. It’s common for cards with no annual fee to have limits of $1,500 per traveler/$6,000 total per trip, which may not cut the mustard if your solo trip costs $4,000.
If your current credit card doesn’t provide enough trip cancellation insurance (or any at all), it’s time for step 2.
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
. . .
The Platinum Card® from American Express
Rewards Rate
- 5x points on directly booked flights and hotels booked through American Express Travel (up to $500,000)
- 1x on all other spending
Welcome Offer
Earn 80,000 Membership Rewards® Points after spending $8,000 in the first 6 months
Annual Fee
$695 (rates and fees)
. . .
2. Determine how much additional coverage you may need
Take a step back and determine how much travel insurance you might need in general.
In addition to trip cancellation insurance, do you need trip delay insurance? CFAR? Travel medical insurance if you’re going overseas?
Let’s say you decide that you need at least $10,000 worth of trip cancellation insurance. Trip delay insurance and baggage delay insurance would be nice to have, too.
If your current credit card doesn’t provide the coverage you’re looking for, let’s look at ways to fill the gaps.
READ MORE: What Is Travel Insurance and Do You Need It?
3. Apply for a card with better coverage or purchase a separate policy
From here, there are two ways to get better travel insurance for your trip.
Apply for a travel credit card that provides better coverage
Before you pay $100 to $200 for a separate travel insurance policy, consider there are several credit cards with annual fees below $100 that provide travel insurance (including trip cancellation insurance) as part of their benefits.
The Chase Sapphire Preferred® Card, for example, offers trip cancellation and interruption insurance ($10,000 per traveler, $20,000 per trip), trip delay reimbursement, baggage delay insurance, and other travel benefits.
Here are some other credit cards that include complimentary trip interruption insurance:
- Chase Freedom Unlimited®
- Chase Freedom Flex®
- United Club℠ Infinite Card
- World of Hyatt Business Credit Card
- The Platinum Card® from American Express*
- Wells Fargo Autograph Journey Visa
You’ll need to wait for your new card to arrive in the mail (5 to 10 business days) before you can book travel with it and take advantage of its travel benefits.
COMPARE: Best Credit Cards With Travel Insurance
Chase Freedom Flex®
Rewards Rate
- 5% cashback on rotating categories each quarter (up to $1,500 in purchases, then 1%; activation required) and travel purchases through Chase Travel℠
- 3% on dining and drugstore purchases
- 1% on all other spending
Welcome Offer
Earn $200 cashback after spending $500 in the first 3 months
Annual Fee
$0
. . .
Chase Freedom Unlimited®
Rewards Rate
- 5% cashback on travel purchased through Chase Travel℠
- 3% cashback on drugstore purchases, restaurants, takeout, and eligible delivery services
- 1.5% on all other purchases
Welcome Offer
Earn an additional 1.5% cashback on everything you buy (on up to $20,000 spent in the first year) — worth up to $300 cashback
Annual Fee
$0
. . .
Purchase a separate travel insurance policy
If now’s not the right time for a new credit card, you can always purchase trip cancellation insurance separately.
Companies like VisitorsCoverage, Allianz Travel Insurance, and TravelInsurance.com can help you find and purchase travel insurance plans that fit your needs.
You’ll typically buy trip cancellation insurance as part of a bundle that includes trip cancellation/interruption, trip delay, baggage delay, medical, missed connection, and other common forms of coverage, with CFAR as an optional add-on.
To give you an idea of cost, we checked VisitorsCoverage for an online quote for a hypothetical eight-day, $4,000 trip to Argentina from the U.S.
We were quoted $108.75 for a cancelable policy that included all of the essentials and $154.24 total to include CFAR.
Speaking as someone who’s been to 41 countries, paying ~$100 for travel insurance (or a credit card that provides it) is worth it for the added peace of mind.
Even if you never have to file a claim, you’ll be glad you had it since it lowers your stress levels throughout the trip, whether you’re in the TSA line or a hammock on the beach.
How to File a Trip Cancellation Insurance Claim
In general, the process of filing a claim against your trip cancellation insurance looks something like this:
- Contact your provider. There’s typically a phone number listed on your policy or within your credit card benefits for a Claims Administrator or similar title. Reach out to them for further instructions. You may also be able to submit a claim fully online.
- Cancel your plans and maximize your refund. You’ll need to show proof that you canceled your plans to receive reimbursement. Remember, trip cancellation insurance will only cover the non-refundable portion of your bookings, and sometimes “non-refundable” airline tickets are actually 100% refundable.
- Gather your documentation. The type of claim will dictate what sort of documentation you’ll need to submit. For example, if you claim a sudden illness or injury, you’ll need a physician’s statement verifying your inability to travel. You may also need to submit your full itinerary, your tour operator’s refund policy, and more.
- Don’t forget your companions’ expenses. As long as their name is on the bookings, your traveling companions may also be covered under your trip cancellation insurance. So if one of you falls ill, you may all be entitled to full or partial reimbursement under your policy.
- Tally up your claim amount and file within 90 days. Most trip interruption policies require you to file within 90 days of your trip to receive reimbursement. Keep in touch with your provider to avoid delays or denials.
How long does a travel insurance claim usually take?
Travel insurance claims can take anywhere from a few days to a few weeks to process.
Two weeks (10 business days) is a general standard, so you might want to reach out if you don’t hear back by then.
Claims might also be delayed during peak travel times or after hurricanes due to the sheer volume of incoming claims to process.
“I had to make a claim with Allianz for about $2k for concert tickets we missed due to having COVID. It took about 2 months.” wrote one Reddit user.
“Wow, I filed a claim for a clinic visit on Cayman Brac (exam and medicine) online from abroad with Allianz and got paid in a day or two.” wrote another.
Needless to say, lead times can definitely vary. But you can potentially speed up the process by:
- Calling your provider before submitting a claim to confirm the exact documents you need
- Taking a second pass to ensure your claim is filed completely and accurately
- Following up with your provider after two weeks to confirm they haven’t found any errors
In some cases, your claim may come back denied. What then?
Common reasons travel insurance claims are denied
Here are the most common reasons travel insurance claims are denied, according to Allianz and VisitorsCoverage:
- Inadequate documentation. Missing receipts and invoices will get your claim rejected.
- No doctor’s note. You’ll need to see the doctor to collect proof you were too sick to travel.
- Storm was already announced. If you booked a trip in the path of a hurricane after said hurricane was announced, any claims for storm-related reasons will likely be denied.
- Submitted too late. It varies by provider, but you typically have to submit claims within 30 to 90 days of canceling your trip for your claim to be considered.
- Reason not covered. There’s a long list of reasons that kinda feel like they should be covered but aren’t, like 12-hour delays, canceled weddings, pre-existing conditions, and more.
Common Mistakes (and How to Avoid Them)
Trip cancellation insurance claims are often denied for somewhat preventable reasons.
Here are some tips for avoiding the common pitfalls and maximizing your chances for compensation.
Waiting too late to buy trip cancellation insurance
Picture this: You and your partner purchase a trip in June to visit Germany for the Christmas markets. On December 15, you hear rumors of an upcoming blizzard, so you buy a travel insurance bundle that includes trip cancellation insurance. The blizzard grounds all flights so you file a claim… and your claim is denied.
Unbeknownst to you, the German authorities announced the blizzard on December 14. If you’d just purchased your travel insurance policy back in June, your claim likely would’ve been approved.
That’s why it’s best to purchase a travel insurance policy as soon as your plans are firmed up. If you wait too long, your chances of claim denial can rise significantly.
Canceling prematurely
You’re excited to visit Maui to see your friends get married, but the night before you leave, the couple calls off the wedding in a fateful social media post.
Devastated, you cancel your plans, gather as many refunds as possible, and file a claim for non-refundable expenses like your flight and first night at the hotel.
To your surprise, your claim is denied. While it may seem a bit callous, from your provider’s perspective nothing was actually preventing you from going to Hawaii.
That’s why it’s best to call your provider before canceling any plans since they can advise you on the best next steps and help you avoid making costly assumptions.
Assuming your credit card has enough coverage
Even if you’re savvy enough to book your trip using a card with trip cancellation/interruption protection, the benefit limits may not be high enough to cover your whole trip.
To illustrate, the Chase Freedom Unlimited® has a coverage limit of just $1,500 per traveler, which may barely cover your flight alone on an international trip. The Chase Sapphire Preferred® Card, however, has a much higher limit of $10,000.
So before you assume your credit card has your back, be sure its coverage limits can adequately cover your plans.
. . .
FAQs about Trip Cancellation Insurance
What does trip cancellation insurance typically cover?
Trip cancellation insurance covers sudden and unforeseen circumstances that prevent you or your travel companion from going, such as sickness, flight cancellation, dangerous weather, and legal obligations.
How is it different from trip interruption insurance?
Trip interruption insurance reimburses you if your trip gets cut short for many of the same reasons covered by trip cancellation, such as unforeseen illness, airline strike, and more.
Are credit card benefits enough for trip cancellation protection?
It depends. Some no-annual-fee credit cards have low limits on their trip cancellation/interruption benefits and may not be enough. But travel rewards cards with an annual fee usually have much higher limits.
What should I do if my claim is denied?
Your first step is to find out why. If it’s something simple like a missing document, you may be able to file an appeal.
When is the best time to buy trip cancellation insurance?
The best time to buy trip cancellation insurance is right after you book your travel plans. If you wait too long, you might pay more for less coverage.
TL;DR: What to Know About Trip Cancellation Insurance
Trip cancellation insurance is a lot like Murphy’s Law insurance, covering circumstances that derail your trip. It’s a common credit card benefit, and even if you have to purchase a separate policy, it’s pretty darn affordable.
When filing a claim, the best thing you can do is call your provider and follow their instructions carefully. You’ll typically have to document what you canceled and why you canceled. That could mean uploading receipts, doctor’s notes, or jury duty summons.
But it’s worth the effort since receiving compensation can enable you to rebook your adventure later.

Learn With Erika
- Free Travel Secrets Workshop
- Learn how to use the fine print to book your next vacation practically for free with Erika's step-by-step system
- Free 5 Day Investing Challenge
- Learn how to get started as a beginner investor and make your first $10,000
- Free 5 Day Savings Challenge
- Discover how you can save $1,000 without penny pinching or making major life sacrifices
- Join Erika Kullberg Insiders
- Ask investing questions, share successes and participate in monthly challenges and expert workshops
. . .

Chris Butsch is an Atlanta-based author and TEDx speaker helping young people prosper mentally and financially. His work has been featured in Forbes, Fortune, USA Today, U.S. News & World Report, ConsumerAffairs, and more. He also delivers college keynotes through CAMPUSPEAK and trains incoming cohorts at the CDC.
* Eligibility and Benefit level varies by Card. Terms, Conditions, and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by Amex Assurance Company.
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.