As most people know, travel cover is partly designed to cover you while you are away – for example, if your airline loses your luggage or you have your camera stolen. But those are not the only benefits on offer. Travel insurers will also pay out if you have to cancel your holiday due to factors such as illness or injury. Bereavements are also included in this section of the policy.
Cancellation cover is generally offered as standard, although the level of protection varies from policy to policy.
Most insurers will pay out up to £1,500 per cancelled trip, while some premium policies cover holidays worth up to £5,000.
It’s clearly crucial to align the cancellation cover provided with what your holiday is costing you. The terms and conditions of the travel insurance policy will also specify the circumstances under which you’d be able to make a claim for cancellation.
Reasons to make a claim on the cancellation part of a travel insurance policy include you or a close member of your family falling ill or being injured in an accident. You might also be able to claim if you are called for a stint of jury service (that you were not aware of when booking your trip).
Some insurance companies will also pay out if, for example, you have a fire or a flood at your home. But an urgent and unexpected business meeting or a self-inflicted injury will not qualify you for a refund from your insurer.
You might also face problems when trying to make a cancellation claim if the insurer offering the policy is not convinced the circumstances stopping you from going qualify as “unforeseen”.
And that’s why it is so important to take out your travel insurance at the time you buy your holiday. Otherwise, it might look like you bought the cover after finding out you could not go ahead with your holiday as originally planned.
If you are found to have taken out the cover specifically to claim a cancellation payment, meanwhile, it will be seen as a purchase made with criminal or fraudulent intent and could land you in a whole heap of trouble.
Get peace of mind now
The best way to put any worries about cancellation to rest is to buy your travel cover now. After all, a lot can happen in a few short months.
MoneySupermarket’s travel insurance comparison service allows you to scour the travel insurance market for the best deals and get covered against cancellation, as well as delays, medical expenses, loss of luggage and liability risks.
You can choose from an annual policy – which covers all your trips for the next 12 months – and a single trip policy, which will probably work out cheaper if you only tend to go away once or maybe twice a year.
Just remember to check the cancellation cover terms and conditions before taking it out to ensure that the protection is high enough to cover the cost of your trip.
Please note: Any rates or deals mentioned in this article were available at the time of writing. Click on a highlighted product and apply direct.