Understanding the Covered Reasons for Trip Cancellation
Travelers have enough to worry about when preparing for a large trip. They shouldn’t need to to worry about unforeseen circumstances which could cancel or derail their plans. Travel insurance is a wonderful thing to have when someone is traveling to a foreign area. Comprehensive trip protection covers a broad range of items such as canceled trips, medical emergencies, evacuations, lost bags, and more. Consumers can obtain policies before they go on trip and then feel secure about every aspect of the adventure. Knowing that an insurance policy covers them is extremely comforting to consumers.
All About Trip Cancellation
Trip cancellation is a special type of coverage that pays for unexpected cancellations (for specific covered reasons) and reimburses your insured pre-paid and non-refundable trip costs that would otherwise be at risk. For example, if someone paid $1,000 in advance to book a trip to Jamaica, the insurance policy would cover 100 percent of the trip cost if they needed to cancel their trip for a covered reason. The consumer must provide proof of the trip cost and the loss before the insurance company will pay out the premium, however.
Trip cancellations can occur for a number of reasons. One common reason for trip cancellation is an illness or injury that renders a person unable to travel, according to a doctor. Another reason that cancellation may occur is the death of a family member who is not traveling. A legal obligation such as jury duty can pop up and render someone unable to take a trip. Other instances that can cause a person to cancel a trip are severe weather conditions and natural disasters. Hail storms, tornadoes, hurricanes and such disasters are common reasons for insurance claims and payments. Trip cancellation policies vary in their covered reasons so it is important to read the covered reasons for trip cancellation before buying.
Travelers can also upgrade to “cancel for any reason” coverage if they would like the added benefit of being reimbursed for conditions that are outside of the specific covered reasons offered by a policy. While this coverage typically only pays 75 percent of the insured (pre-paid and non-refundable) costs, that is still good peace of mind. There are requirements such as the person has to notify the company of the cancellation between 48 and 72 hours before the trip start date and 100% of your trip costs must be insured. This upgrade is typically only offered if you purchase the policy within a set amount of days of initially putting a partial or whole payment towards your trip. The extra benefit can be well worth it for someone who likes to travel.