Despite the gruelling demands of work and life, you’ve been healthy all year. And a much needed vacation couldn’t come sooner. But one last bike ride, to seal that toned bikini-clad body, does you in. A few days in the hospital, a broken leg and a cancelled trip. Ouch!
That’s where trip cancellation insurance comes in handy. Purchased within the 72 hours of booking a dream trip, this type of coverage protects against the costs incurred due to an unexpected accident, illness or other event outlined in a trip cancellation insurance policy.
Trip cancellation insurance is an optional coverage. It provides peace of mind by protecting the cost of the trip, and any penalties charged by the airline or the tour operator, before departure and during the trip. When a trip must be cancelled for valid reasons, trip cancellation insurance also helps cover non-refundable, pre-paid travel expenses like hotel and transportation. Three ways trip cancellation insurance provides coverage before departure:
- Reimbursement of the non-refundable portion of prepaid travel arrangements (ie. deposits or cancellation charges).
- Reimbursement of the travel costs if travel plans are cancelled prior to departure
- Reimbursement of the total cost of the trip for “a covered reason” listed in the travel insurance policy for cancelling a trip. Typical “covered reasons” include: *
- unexpected sickness, injury, and/or death of a travelling companion, immediate family or a travelling companion’s immediate family
- natural disaster/travel advisory
- bankruptcy/financial default of travel company
- involuntary job loss
- the non-issuance of a travel visa or theft of visa/passport prior to trip
- terrorism or mandatory evacuation at destination
- home or business damaged, vandalized, or burglarized
- jury duty, a required court appearance or military redeployment
- required to work, terminated, or transferred
- Legal separation or divorce
- loss of accommodations abroad due to an illness or death of host family or friends.
Travellers can also consider purchasing optional ‘Cancel for Any Reason’ coverage which ensures reimbursement of a portion (50-100%) of the travel expenses.
Whether you’re crossing the border or flying overseas, trip cancellation insurance protects you from costly out-of-pocket expenses that should be of least importance, especially while you’re recovering from an illness, injury or dealing with an unexpected event.