What is a Travel Cancellation Insurance Policy?
A Travel Cancellation Insurance Policy can be one of the smartest investments that any traveler makes. We can find cancellation benefits embedded into every Comprehensive Travel Insurance Policy.
The purpose of the Travel Cancellation Insurance Policy is to get as much of a refund as possible in the event that we need to cancel.
There are a variety of reasons as to why we may need to cancel, but they can be typically divided into three types – Tragedy, Work, Just Because I Want To.
Let’s take a look at all of these.
Travel Cancellation Insurance Policy – Tragedy
Trip cancellation cover is embedded into every policy. It provides you with financial protection. With this regular trip cancellation cover, you are reimbursed for expenses associated with airfare and other non-refundable deposits that you’ve paid towards your trip. This basic trip cancellation cover is comprehensive and will cover cancellations, such as:
- Accident, illness, or death of you, a traveling partner, business partner, or family member
- Jury duty
- Legal appearance
- Traffic accident en route to airport
- Death or hospitalization of your host at your travel destination
- Job loss
- Bankruptcy of your travel provider
100% refund – Why?
Because when you look at the list, the reasons, whilst primarily tragic, do not happen very often, thank goodness. So the insurance carrier is happy to have this type of cover embedded into a Travel Cancellation Insurance Policy without making the cover terribly expensive.
However, as you can see, there is not a great deal of flexibility.
We have all had vacation cancelled by work, and from the list you can see that this ‘Cancel for Work Reasons’ benefit is not there. So…
Travel Cancellation Insurance Policy – Work
This Travel Cancellation Insurance Policy – Work benefit reimburses you for prepaid, non-refundable trip payments and deposits if a trip is cancelled for unforeseen work-related circumstances, such as:
- When you or a traveling companion’s employer requires a job transfer which requires your principal residence to be relocated.
- If you are (or your traveling companion is) required to work during the scheduled trip.
- When your (or your traveling companion’s) company is directly involved in a merger or acquisition.
- If your (or your traveling companion’s) company operations are interrupted by fire, flood, burglary, vandalism, product recall, bankruptcy or financial default.
This type of cover will also typically reimburse at 100% of prepaid non-refundable costs. We really like this cover. It is often referred to as ‘Cancel for Work Reasons’ Insurance.
Cancel for Work Reasons Travel Insurance – Exclusions & Solutions
Please note that work-related benefits do not typically apply to self-employed individuals or business entity owners such as partners of a partnership.
Also, there is typically a minimum period that you need to have been employed for in order to benefit from the cover. A regular policy, that every travel insurer will sell, is normally looking for 12 months. The policy that the airline wants to sell you will need three years – a huge disadvantage to the traveler.
So, how do we solve not being covered by Cancel for Work Reasons on our Travel Cancellation Insurance Policy?…
Travel Cancellation Insurance Policy – Just Because I Want To
You aren’t going to see ‘Just Because I Want To’ in the policy document. Insurers just aren’t this creative with their writing. What you will see is ‘Cancel for Any Reason’, but it really means the same thing.
Cancel for Any Reason cover is the most comprehensive cover that can be purchased. It allows you to cancel your trip, without any reason at all, anytime up to 48 hours before departure, and receive a refund.
Now, this is only a 75% refund – not as healthy as the regular 100% refund obtainable with regular and work cancellation. But given the circumstances, where a traveler needs to give no reason at all, we think that Cancel for Any Reason Insurance is an awesome benefit to have embedded into a policy.
Cancel for Work & Cancel for Any Reason – Insure Early
This is another example of the benefit when you buy travel insurance early. In this case, it is important to have your trip insurance in place within 14 days of your initial trip deposit. Why? If you have arranged for your trip insurance to be in place early, then you can benefit from any Cancel for Work Reasons benefit that exists within the policy. Same deal for Cancel for Any Reason. Your Cancellation Insurance Policy has far more benefits embedded within it, if you get it in place early.
Cancel for Any Reason – Airline & Travel Sites
You must check the small print of any airline cancellation insurance policy that you are offered. Every cancellation benefit that we have seen from every airline looks incredibly limited. None offer Cancel for Any Reason, and most require three years of consecutive employment with the same employer for the Cancel for Work Reasons cancellation benefit to be valid. They tend also to be more expensive than can be obtained in the regular market. You will almost certainly find better cover at a lower price if you spend a few minutes searching.
Cancel for Any Reason – Airline Ticket Hack
Why not think about a Travel Cancellation Insurance Policy differently? Why not use it to lower your airline ticket price. Spend a little on insurance with the cheapest airline seat – probably the best bargain in aviation. Instead of booking a Flexible or Refundable airline ticket, book a Non-Refundable. Then, add some Cancel for Any Reason Insurance. It’s super-clever, and certainly worth spending a little time reviewing. We have called this the Airline Ticket Hack.
As always, at AardvarkCompare we recommend that travelers consider travel insurance. You can get an anonymous quote in seconds, and compare dozens of the top travel plans from many of the largest US travel insurers, saving you time and money finding the right travel plan for your needs.
What many people do not know is that they won’t find the same trip insurance plans available at a better price – all down to price certainty anti-discriminatory law in the US.
Travel Insurance Comparison – Will I Pay More Buying Travel Insurance from a Comparison Website?
In short – a trip insurance quote for an insurance plan that you see from AardvarkCompare is the same price you would see from the insurance carrier direct – we are not allowed to compete on price for ‘filed’ insurance products. No one is. You are certain to get best value from us.
Recent AardvarkCompare Travel Insurance Customer Reviews
I Panicked When I Discovered
I panicked when I discovered the Travel Insurance I had through Expedia had expired when I changed my flight reservation.
When I went to renew I was told I couldn’t.
I discovered Aardvark on my AARP site and I was excited I could purchase an even better travel plan with cover starting with my trip departure, at a cost I could afford.
I was confused with the initial site and Mr. Breeze reached out to me for clarification.
He explained the policy more thoroughly and addressed all my concerns, can’t get any better than that!
Thank You Aardvark and thank you Jonathan for your assistance.
I can go on my trip now knowing I’ll be covered for medical emergencies and then some.
Good Choices, Well Explained
I liked the way insurance was explained. I had read an article your company had written explaining Expedia trip cover versus other choices.
I used this advice to make the best choice for me and my traveling companions. That choice was to take a policy that provided much better medical and evacuation primary care.
Your site allowed comparisons, and I think I got the best value for my money. I don’t like constant follow up emails, though. You could back off a bit!!