A Rundown of Trip Cancellation vs. Trip Interruption Coverage

They say that the best plans are made to be broken, and unfortunately, this can occur after you plan to take a fabulous trip to a location you have been dreaming about for years. This is one of the best reasons that you need trip protection insurance because you never know when something will come up and you have to cancel or interrupt your trip.

Trip Cancellation Insurance

The coverage that allows you to protect your vacation against pre-departure cancellations is trip cancellation insurance, and virtually every comprehensive travel insurance policy includes it. Before you can cancel your trip and receive reimbursement of your insured, pre-paid and non-refundable trip costs from a travel insurance policy, you would need to ensure that you are cancelling for a covered reason under the policy. Some reasons that will be covered under travel insurance policies include the following and more:

• The death of one of the travelers.
• An injury that occurs before you can depart.
• A weather event that had not been predicted before it became a “known event.”
• The need to perform jury duty or testify in a trial.

It’s possible that you may need to cancel your trip for a reason that is not listed under a particular policy’s covered reasons for cancellation. If this concerns you, you have the option of purchasing trip protection insurance that allows you to cancel your trip for any reason at all. These policies will give you 50 percent to 75 percent coverage for travel expenses that cannot be refunded.

The privilege of cancelling your trip for any reason requires that you add this benefit to your travel insurance policy. This will require that you pay a fee, but you must also buy the policy between two and three weeks after you place a deposit on it.

Trip Interruption Insurance

If you are concerned about the possibility of something happening during your travels that would interrupt your trip, you have the option of purchasing a trip interruption insurance policy. This policy covers you and the other insured travelers on the policy if you have to interrupt your trip and return home, for a covered reason. Depending on the policy, you may have coverage for 100-150% of your insured trip costs, because it can sometimes be quite expensive to book a flight home at the last minute.

If you fall ill during your travels, you will be required to see a doctor. Your insurance company will need a letter from your doctor that states that you are too sick to continue your travels and must return home. If you fail to take this step, the insurance company may deny your claim.

Some insurance policies pay you more for an interrupted trip than others. For example, one company may give you 100 percent of the cost of your trip, but others will even give you 150 percent of the costs. The most prudent insurance companies may only offer you $500 in trip interruption coverage.

Whether you receive the maximum amount of money or a minimal amount, your reason for interrupting your trip must be a covered reason under your policy. Some of the covered reasons for trip interruption include the following:

• A death in the family.
• An unforeseen illness or injury.

The covered reasons for trip cancellation and trip interruption do vary by provider and plan. Given that, make sure to click on those benefits when quoting on TravelInsurance.com, to view the covered reasons before you buy online.