Travel Cancellation Insurance

Key takeaways

• Travel insurance cancellation cover provides financial protection if you need to cancel your holiday plans due to unforeseen events

• Choose a policy where the cancellation cover aligns with the total cost of your holiday

• Buy travel insurance as soon as you book to ensure you are covered for cancellation

What is travel insurance cancellation cover?

Travel insurance cancellation cover allows you to claim for some or all of the cost of your holiday if you have to cancel your travel plans. It is part of most standard travel insurance policies, and gives you peace of mind that you'll be covered if you cancel your holiday in certain situations.

For example, you may be able to claim for cancellation in the following scenarios:

• Accident or illness

• Bereavement

• Redundancy

While most travel insurance policies include some level of cancellation cover, the limit can vary significantly between different insurers, and various policies will have different reasons that the insurer will accept. It's important to read your policy documents to find out exactly what you're covered for.

Will travel insurance cover me if I cancel my trip?

Whether or not travel insurance will cover you if you cancel your trip depends on the reason for the cancellation, and your specific policy.

Most standard travel insurance policies will include some level of holiday cancellation cover. However, the amount covered and the circumstances under which you can cancel your trip will vary by policy and provider.

You should always check your policy wording to see what’s covered.

Which costs are covered by holiday cancellation insurance?

Cancellation cover normally includes the cost of:

• Pre-booked transport, such as plane or train tickets

• Accommodation costs, including hotels, hostels, or campsites

• Other non-refundable expenses, like tours or excursions

You will normally need to pay an excess when you make a claim for cancellation.

If you get a full refund from your travel agency or provider, you won't be able to claim through your insurance as well.

Which reasons for cancelling a trip will travel insurance cover?

Cancellation cover will only pay out in certain situations. You won’t be covered for simply changing your mind about going on holiday. Valid reasons for cancellation claims can include:

• Medical emergencies, including a sudden injury or illness preventing travel

• Requiring medical treatment for a condition that was unknown when you took out insurance

• Home emergencies, such as a fire or flood

• Destinations becoming unsafe for travel

• Jury duty or other legal obligations

• Bereavement

• Pregnancy complications

• Redundancy or unexpected work commitments

• Unexpected events such as natural disasters

• Involuntary redundancy

• Complications of a pre-existing condition that you declared when taking out the policy

• Being a member of the armed forces and being ordered to return to duty

If you're thinking of cancelling your holiday it's important to check what your policy covers, and contact your insurance provider if you're unsure.

What doesn’t travel cancellation insurance cover?

Most travel insurance policies will have certain exclusions for trip cancellation. Common exclusions are:

• Cancelling a trip because you changed your mind

• Having to cancel a trip because of a pre-existing medical condition that you failed to declare

• Injury or illness related to drugs or alcohol

• Cancellation due to an issue that was known at the time you purchased the insurance

• Cancellation due to a close relative or family member falling ill

• Airline cancellations, which are usually managed by the airline itself

• Known or foreseen events, such as strike action that was planned when you purchased the insurance or a natural disaster that was foreseeable

How much protection do I get with cancellation cover?

The level of protection provided by cancellation cover can vary. Different policies offer different maximum claim amounts depending on the level of cover you chose.

You can save up to [data]% for single trip and [data]% for annual multi-trip insurance when choosing a £500 cancellation policy. However, it's important to choose a policy where the cancellation cover aligns with the total cost of your holiday. Policies available through MoneySuperMarket, for example, can offer anywhere from £500 to £10,000 in cancellation cover.

When should I buy travel insurance?

It's important to buy travel insurance as soon as you’ve booked your holiday. You are covered for cancellation from the date specified in your policy.

Our travel insurance guide on when to buy provides more information.

How do I make an insurance claim for a cancelled holiday?

If you need to claim, your travel insurance provider will usually want to see:

• Proof of bookings and cancellations, such as receipts or invoices

• Travel documents detailing your planned trip

• Medical documentation for health-related claims

• Official evidence for other valid cancellation reasons, like a redundancy notice, a copy of the death certificate if you had to cancel your trip because of a bereavement, or a letter stating you must attend jury duty

Keeping all relevant documents and policy details at hand will streamline the claims process.

If you've booked through a travel agent, they can often assist with the cancellation process. Otherwise, you may need to contact your travel providers directly.

When should I file a claim?

Some insurers require you to register the claim within a certain time, often 30 days. Generally, you should aim to file your claim as soon as you can.

Timelines for handling claims can vary, and you should check your policy documents for any specific time limits or terms.

Recoverable costs

Sometimes, an insurer won’t cover “recoverable costs”. This means that if a cost can be recovered elsewhere (for example, if your car hire contract had a clause meaning you could claim a full refund from the provider if you cancelled within 48-hours of the hire start date), you must claim back the cost elsewhere.

If you booked via a credit card — for example, if a flight that you paid for via credit card gets cancelled — you will sometimes be covered by your credit card provider. This would therefore be considered a recoverable cost.

To make your claim as smooth as possible, you should be prepared to show evidence that costs are not recoverable, or that you have attempted to recover costs and been unable to do so.

Does travel insurance cover flight cancellations?

If your flight is cancelled, the airline provider is responsible for providing a refund or arranging an alternative flight. If your airline fails to act within 24 hours of the cancellation, or if your flight was cancelled due to strike action, then you may be able to seek a refund from your insurer.

If you cancel a flight yourself, you may not be entitled to a refund. You should check your airline’s terms and your insurer’s policy to see what you are entitled to.

Frequently asked questions