Trip cancellation insurance is quite the buzzword within the travel industry. And with good reason, no one wants to lose hundreds or thousands of dollars because of something unpredictable. Perhaps this is what has made this particular travel insurance benefit so popular, but each insurance company is its own and each policy is unique. TravelSafe's Trip Cancellation benefit is much different than its competitors, and it's a good idea to know how.
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Each week the customer service team fields calls relating to trip cancellation. No one wants to purchase a travel insurance plan without ensuring it's a good fit for themselves and their trip. Travelers and agents want to know what is covered, what's not and if there are any exclusions. Rightfully so.
Here is what you need to know about TravelSafe's Trip Cancellation benefit.
1. What is Trip Cancellation Insurance?
A common misconception is that Trip Cancellation is its own insurance. With TravelSafe, that's not the case. It is a benefit within our insurance plans. One in which travelers are provided reimbursement for the amount of unused, nonrefundable and prepaid travel arrangements should you have to cancel your trip.
It's important to note that your reason for canceling must be covered -- information you can always find in your insurance certificate.
2. How does Trip Cancellation Insurance Work?
When you receive travel insurance quotes online, you will see a list of benefits available within different policies. Each benefit will have what is called a benefit limit. The benefit limit is the maximum amount which an insurer will pay the insured should they file an approved claim. For TravelSafe's Trip Cancellation benefit, the maximum benefit limit is the cost of your trip, also known as Trip Cost.
However, in order for your full trip cost to be insured, you must insure the full cost of your trip. If your trip is going to cost $3,200 but you only decide to cover $2,800, then $2,800 will be your maximum reimbursement.
Trip Cancellation coverage begins at 12:01 am the day after the premium has been received by TravelSafe. If you're still using snail mail to purchase your policies, the benefit would be effective the day after the postmarked date.
One thing that seems to confuse quite a few travelers is when the coverage ends. Coverage automatically ends on the time of your scheduled departure (on your scheduled departure date) or the date and time you depart on your trip -- whichever comes first.
Say you discovered you had an ear infection at 8:00 am the morning of your trip. Your flight is scheduled to leave at 4:00 pm, but your doctor has advised against flying. Your trip would be covered under Trip Cancellation.
However, if you came down with the ear infection while boarding your flight, your Trip Cancellation would not cover this because it would no longer be in effect. But don't worry, trip Interruption would!
3. What is covered under TravelSafe's Trip Cancellation Benefit
Trip Cancellation covers a variety of reasons for canceling your trip. Anything from the sickness or death of a traveling companion or family member to a hurricane warning issued by NOAA and predicted to land on your destination. The key thing is to read your certificate and know what is covered, but here is a general list of covered reasons.
Pro tip: Pre-Existing Conditions only apply to the traveling party, not non-traveling family members. Read the full article on Pre-existing conditions here.
- The death of traveling companion, business partner's death or yourself.
- Your or a family member's, traveling companion's, or business partner's covered sickness or injury prevents your participation in the trip.
- cancellation due to terrorism.
- Your place of residence is uninhabitable due to fire, flood, burglary or other natural disaster.
- Cancellation for work reasons.
- Documented theft of passports or visas.
- A permanent transfer of employment of 250 miles or more.
- Traffic accident substantiated by a police report stops you or your traveling companion from traveling.
- Cessation of common carrier on which you are schedule to travel. Reasons could be unannounced strike, mechanical break down or inclement weather.
- Cancellation due to natural disasters.
- Bankruptcy or default of airline, cruise line, tour operator or other travel provider (not including the travel agency through which you booked your trip).
- Family or friends living abroad can no longer provide accommodations due to life threatening illness, injury or death.
- Cancellation due to extension of school year.
- Hurricane warning issued by NOAA.
4. Any Exclusions?
There are exclusions within TravelSafe's policy that would prevent a traveler from receiving reimbursement. Things like mental or nervous conditions; normal childbirth or pregnancy; an act of war; various extreme sports activity; suicide or attempted suicide; fear of pandemic or epidemic; and any Pre-Existing condition that does not meet the requirements for the Pre-Existing Conditions Waiver.
Trip cancellation is one of the most popular benefits in travel insurance. It has protected hundreds of thousands of travelers from losing on their investment. As always, be sure to read the travel insurance certificate designated for your state for a complete list of coverage and exclusions. You can search for your state's travel insurance certificate here.
