What is Trip Cancellation Insurance?
What Standard Trip Cancellation Insurance Covers
Common covered reasons include illness, injury, and death of a loved one. Some plans may exclude epidemics/pandemics and may not provide coverage for related issues (e.g., quarantines). Please be sure to read the plan details carefully before purchasing.
Usually, once an event becomes a “known” event, it’s not a covered reason for cancellation if you purchased the insurance after the date it became “known.” Standard travel insurance helps cover unexpected events.
Deciding to cancel a trip because you’re anxious about a potential storm or you decided you don’t want to spend the money is not a standard coverage item. That’s where “cancel for any reason” comes into play.
“Cancel for Any Reason” Coverage
If you want the peace of mind (and flexibility) that no matter what reason you decide to cancel, you’ll receive reimbursement for some of your trip—then you want to purchase a “Cancel For Any Reason” (CFAR) policy.
Usually, the CFAR policy must be purchased within 20 days or so of making the initial trip deposit. The specific timeframe and refund amount will depend on the particular policy provider. Some providers refund up to 75 percent of your trip, others may offer only 50 percent or a different amount. CFAR inclusion will increase the cost of your standard policy (which will depend on the cost of your trip and your age).
New Yorkers: Due to a state regulation you’re not eligible for “Cancel for Any Reason” insurance.
InterExchange is not an insurance broker or advisor. Please consult a professional insurance agent before making decisions regarding your travel medical insurance coverage.
