Were you incredibly excited about your trip, only to fall ill before it could begin? To avoid being stuck with the costs, you should secure the appropriate insurance in advance. In our article, you’ll find information about the benefits of trip cancellation insurance. Moreover, you’ll learn how much trip cancellation insurance costs, when it applies, and how it differs from trip interruption insurance.
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When Does Trip Cancellation Insurance Apply?
There is a wide range of providers for trip cancellation insurance. Depending on which provider you choose and which plan you select, different reasons for cancelling your trip are covered. While personal illness or severe injury are typically always included, some insurance policies also cover property damage, job loss, family deaths, vaccine incompatibilities, emergency first responder duties, or exam retakes as insured reasons.
Trip cancellation due to a COVID-19 infection is also included in many travel cancellation insurance policies, or can be added for a small additional fee.
Some policies also provide coverage for delays with public transportation. The minimum delay varies by provider. If you miss your flight due to a significant delay, some trip cancellation insurances will cover the additional costs for your delayed departure. Thus, you also benefit from the insurance even though you are starting your vacation.
What Type of Costs Does Trip Cancellation Insurance Cover?
If you cancel your trip for one of the insured reasons specified in your contract, your insurance will cover all travel expenses.
These include:
- the cost of your accommodation,
- transfer fees to the airport,
- train or plane tickets,
- and pre-booked meal expenses.
To ensure that your insurance covers all the costs of the trip, you should consider the sum insured when you take out the policy. Make sure that all costs associated with your trip are covered.
How Much Does Trip Cancellation Insurance Cost?
The cost of trip cancellation insurance depends on various factors and cannot be answered universally. If you opt for a combination of trip cancellation and trip interruption insurance, it usually costs more than a simple trip cancellation insurance.
However, you are not only protected before your trip starts but also during your trip. Additionally, you pay less than if you were to book both insurances separately.
Another way to save money is by opting for family insurance if you are traveling as a couple or a family with children. Furthermore, the price of the insurance also depends on whether you want to insure just one trip or multiple trips within a year.
Is Trip Cancellation Insurance Worth It?
Whether trip cancellation insurance provides value for you depends on various factors. Generally, the insurance is particularly worthwhile if you cannot cancel booked accommodations and flights without fees. Especially for expensive trips, trip cancellation insurance is valuable since these are usually associated with high cancellation fees.
The closer the trip gets, the higher the cancellation costs typically become. Additionally, traveling with older people with pre-existing conditions and children often carries a higher risk of trip cancellations. Therefore, insurance is particularly recommended in these cases. This also applies to vacations with a long period between booking and departure.
What Is the Difference Between Trip Cancellation and Trip Interruption Insurance?
Trip cancellation insurance only applies if you fall ill before your trip begins. If you become ill during your vacation and have to cut it short, you are no longer covered. This means you will have to bear any travel costs incurred and also pay for the early return trip.
This is where trip interruption insurance steps in. In the event of a trip interruption, you will be reimbursed for the costs of services you could no longer use on-site. Some insurance providers also cover not only the illness of the insured person but also that of their close relatives.
In certain cases, trip interruption insurance also applies if you need to stay longer at your vacation destination due to unforeseen reasons, such as an accident.
It is worthwhile, especially for longer vacations or trips to distant destinations, to book a combination package. Many insurers offer trip interruption insurance at a small additional cost when you purchase trip cancellation insurance.
Conclusion: Trip Cancellation Insurance Is Always a Good Idea
You should always keep your individual requirements in mind when choosing your trip cancellation insurance. If you travel only once a year, single-trip insurance is usually sufficient. If you travel twice or more often, an annual insurance policy is often cheaper.
Depending on which insured reasons are particularly important to you, it is also worth comparing different providers. They often have different focuses and sometimes even offer combination packages for comprehensive travel protection. We’re sure you’ll find the right insurance for your next trip.
