Does travel insurance cover trip cancellation?
Key takeaways
Cancellation cover can pay out for non-refundable holiday costs if you cancel for a reason covered by your policy
Policies only cover certain cancellation reasons, so a reasonable decision to cancel will not always mean you can claim
Check your cancellation limit, excess and covered reasons against the cost and circumstances of your trip before buying
What is travel insurance cancellation cover?
Cancellation travel insurance can cover some or all of your non-refundable holiday costs if you have to cancel before travelling for a reason included in your policy.
It can cover costs such as pre-booked flights, trains or other transport; hotels and other accommodation; and pre-paid tours, excursions and activities. You'll usually need to pay an excess, and you can't claim from your insurer for costs that have already been refunded elsewhere.
When will travel insurance cover me if I cancel?
Your travel insurance will only cover cancellation if your reason is included in the policy and you meet any conditions attached to it - before you claim, you should consider:
Reason: Is the reason you're cancelling covered by your policy?
Timing: Was the event unexpected when you booked your trip and bought your insurance?
Loss: Have you lost money that cannot be refunded elsewhere?
Limit: Is your cancellation cover high enough, and what excess will you pay?
Cancellation insurance does not cover every situation where cancelling feels sensible or unavoidable - the reason normally needs to match an insured event listed in your policy.
Which reasons for cancelling are covered by my travel insurance?
Cancellation cover can apply to a range of unexpected circumstances, but the exact list varies between insurers.
Reason for cancelling | Is it covered? | Things to check |
|---|---|---|
Unexpected illness or injury | Often | You may need to show medical evidence, such as a doctor's or hospital referral |
Often | You should check which relatives or other people are included by your policy | |
Jury service | Often | It will normally need to be unexpected |
Involuntary redundancy | Sometimes | Have a look at your insurer's specific definition and conditions |
Serious damage to your home | Sometimes | The incident must meet your insurer's definition of a covered home emergency |
Pregnancy complications | Sometimes | Normal pregnancy is treated differently to unexpected complications |
Sometimes | You may need catastrophe or travel disruption cover | |
Usually excluded under standard cover | Specialist cover may be needed | |
Change of mind | No | Standard policies do not normally provide 'cancel for any reason' cover |
Something already known about | Usually not | Known or foreseeable events are commonly excluded |
Does a home emergency count as a reason to cancel?
It can, but not every problem at home will qualify for a cancellation claim. Some policies cover cancellation following serious events such as a fire or flood - but the wording of your policy may set conditions around the type or severity of the damage.
For example, you might reasonably decide that you can't go away while an unresolved plumbing leak is being repaired. That does not automatically mean your travel insurer will cover the cancellation if the circumstances do not meet one of the insured events in your policy.
If you're unsure whether your situation qualifies, contact the insurer before cancelling where possible and ask which part of the policy would apply.
Will cancellation cover apply to war or conflict?
Usually not under standard travel insurance - claims caused directly by war, armed conflict or civil unrest are commonly excluded.
A change in Foreign, Commonwealth & Development Office (FCDO) travel advice does not automatically mean your insurer will pay a cancellation claim either. Whether you're covered will depend on the reason for the change and the wording of your policy.
Travelling against relevant FCDO advice can also affect the validity of your insurance. If you're travelling somewhere affected by conflict or a high security risk, you might need specialist high-risk travel insurance.
Will cancellation cover apply to wildfires or natural disasters?
It can, but natural-disaster cancellation is not automatically included with every travel insurance policy. Some policies include catastrophe or travel disruption cover for events such as wildfires, floods, earthquakes or severe weather, while others exclude natural disasters or only provide limited protection.
Cover can also depend on when the event became known - buying insurance after a wildfire or other disruption was already widely known may mean claims relating to that event are excluded. Check your policy wording for natural disaster, catastrophe or travel disruption cover rather than assuming standard cancellation insurance will apply.
Which holiday costs can I claim back?
Cancellation insurance can normally cover non-refundable, pre-booked costs up to the limit shown on your policy. These can include:
Flights, trains and other booked transport
Hotels, villas, hostels and other accommodation
Tours and excursions
Other pre-paid activities covered by the policy
However, travel insurance is not designed to pay for costs you can recover elsewhere - if your airline, hotel, tour operator or another provider owes you a refund, you will normally need to pursue that first. Your insurer may ask for evidence showing which costs could not be recovered.
Specialist activity cover can also provide extra protection - for example, golf travel insurance can cover certain non-refundable green fees where the circumstances meet the policy conditions. Similar add-ons are available for winter sports, which may include cover for ski passes, equipment hire or pre-booked lessons if your trip is disrupted for an insured reason, and for water sports, where activities such as diving courses, surfing lessons or boat excursions may be protected if you have to cancel and the policy conditions are met.
How much cancellation cover do I need?
Your cancellation limit should be high enough to cover the money you could lose if you had to cancel your trip for an insured reason.
Add up your non-refundable transport, accommodation, package holiday costs, tours and excursions, activities and event bookings, and other pre-paid travel costs. For example, if you could lose £4,000 by cancelling your trip, a policy providing only £1,500 of cancellation cover could leave you with a significant shortfall even if your claim is accepted.
When you compare policies through MoneySuperMarket, look at the cancellation limit alongside the policy price, covered reasons and excess. A higher limit won't necessarily mean the policy covers a wider range of reasons for cancelling.
What should I check before buying cancellation cover?
Don't compare policies on the cancellation limit alone - you should also consider:
Cancellation limit: Is it enough to cover the non-refundable cost of your trip?
Covered reasons: What circumstances does the insurer actually accept for cancellation claims?
Exclusions: Are there situations relevant to your trip that the policy specifically rules out?
Excess: How much would be deducted if you made a successful claim?
Medical conditions: Have you declared all conditions the insurer asks about, and would illness-related cancellation be covered?
Family definitions: Who counts as a close relative or other person whose illness or death could trigger cover?
Natural-disaster and disruption cover: Are wildfires, severe weather, strikes or similar events included?
Activities and add-ons: Do you need extra protection for golf, winter sports, cruises or other pre-paid activities?
Per-person or booking limits: Check how the insurer applies its cancellation maximum if several people are travelling together
When cover starts: Cancellation protection generally matters from before you travel, so check the start date shown on the policy
Who should I contact first if my trip is cancelled?
It depends on who cancelled and why:
What happened? | Who should I contact first? |
|---|---|
I need to cancel for a personal reason | Check refunds with your travel providers, then contact your insurer if your reason is covered |
My airline cancelled my flight | Your airline |
My package holiday was cancelled | Package holiday organiser |
My hotel, tour or activity was cancelled | Booking provider |
I have costs that cannot be refunded elsewhere | Travel insurer, if the reason is covered |
For flights covered by UK passenger rights rules, a cancelled flight can give you the choice between a refund and alternative transport. You should contact your airline before trying to recover the same flight cost through your travel insurance.
If a package holiday organiser cancels your package, separate consumer protections can also give you refund rights.
When should I buy travel insurance with cancellation cover?
Buy travel insurance as soon as practical after booking your holiday if you want cancellation protection before you travel. Cancellation cover can apply before your departure date, from the date specified in your policy.
Waiting until shortly before you leave could mean you were uninsured if something forced you to cancel in the meantime. It will not normally cover an event that was already known or foreseeable when you bought the insurance.
How do I claim for a cancelled holiday?
You should contact your insurer as soon as possible and be sure to check for what evidence they need - you may be asked for:
Booking confirmations, receipts or invoices
Proof that the booking was cancelled
Evidence of any refunds received or refused
Medical evidence for an illness or injury
A death certificate for a bereavement claim
A redundancy notice
Evidence of jury service or another covered legal obligation
Insurers might also set a time limit for registering a claim, so check your policy as soon as possible rather than delaying.
Try to recover refundable costs first
You should try to contact your airlines, accommodation providers, tour operators and other travel companies before claiming for costs they may be responsible for refunding. Keep any correspondence confirming that a cost is non-refundable, as your insurer may ask you to show that you have tried to recover it elsewhere.
Frequently asked questions
What can I do if my cancellation claim is rejected?
Ask your insurer to explain why the claim was rejected and which part of your policy it was tied to, and if you believe the decision is wrong, make a formal complaint to the insurer. If you're unhappy with its final response, or it has not sent you a final response within eight weeks, you may be able to take your complaint to the Financial Ombudsman Service.
Keep your policy documents, claim evidence and correspondence with the insurer.
Can I claim if a relative becomes ill?
Possibly - some policies cover cancellation if a close relative becomes unexpectedly ill, but insurers can have different rules on which family members or other people are included. Cover can be affected if the illness or risk of cancellation was already known when the trip was booked or the insurance was bought.
Can I cancel because I'm worried about travelling?
Usually not if you simply no longer feel comfortable travelling - standard cancellation insurance does not normally cover a change of mind or general reluctance to travel. If there is war, civil unrest, a natural disaster or another serious event at your destination, check your specific policy wording and current FCDO advice rather than cancelling on the assumption that insurance will reimburse you.
Does a change in FCDO advice mean I can claim?
Not automatically - a change in FCDO advice can affect your insurance, but whether you can claim for cancellation depends on your policy and the reason for the change. Some causes of disruption, particularly war and civil unrest, may be specifically excluded even if travel advice changes.
Can I claim for cancelled golf bookings or green fees?
Standard cancellation cover may include pre-paid activities if your whole trip has to be cancelled for an insured reason, but golf cover can provide additional protection for golf-specific costs. Added golf cover can include non-refundable green fees in certain circumstances, such as a course closing because of extreme weather.
What's the difference between cancellation and curtailment?
Cancellation applies when an insured reason means you cannot go on your trip, while curtailment applies when an insured reason means you have to cut a trip short after it has already begun. They are often included within the same travel insurance policy, but the limits and circumstances covered can differ.
Will I pay an excess on a cancellation claim?
Usually - check both your cancellation limit and excess when comparing policies because they affect how much money you could actually receive.
Will travel insurance pay if my airline cancels my flight?
Your airline should normally be your first point of contact - where UK passenger-rights legislation applies, a cancelled flight gives passengers rights including a refund or alternative transport. Travel insurance may help with other eligible losses that cannot be recovered from the airline, depending on the policy.
Author
Mehdi Punjwani
Insurance specialist
Mehdi is a financial writer and editor with over six years of experience in personal finance. He has written for organisations and publications including Equifax, The AA, and USAToday, covering a...
Reviewer
Beth Leslie
Senior Insurance Content Editor
Beth is an experienced writer and editor who specialises in financial and economic content. She is currently the Senior Insurance Content Editor for MoneySuperMarket. Beth is passionate about making...
