Does travel insurance cover trip cancellation?
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?
Cancellation cover is sold as part of travel insurance. This type of cover means you can claim for the cost of your holiday, up to a certain amount, if you have to cancel your travel plans 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. It's important to read your policy documents to find out exactly what you're covered for.
Which costs are covered by holiday cancellation insurance?
Cancellation cover normally cover the following costs:
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:
Sudden injury, medical condition or illness preventing travel
Home emergencies, such as a fire or flood
Destinations becoming unsafe for travel
Jury duty or other legal obligations
Bereavement or serious illness in the family
Pregnancy complications
Redundancy or unexpected work commitments
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 that your specific reason for cancellation is covered under your policy's terms and to contact your insurance provider if you're unsure.
What claims will be refused?
There are certain situations where cancellation claims will not be honoured, including:
Injuries related to alcohol or drug use
Cancellations due to pre-existing medical conditions
Airline cancellations, which are usually managed by the airline itself
Simply changing your mind about travelling
How much protection do I get with cancellation cover?
The level of protection provided by cancellation cover can vary. Different policies offering different maximum claim amounts depending on the level of cover you chose.
You can save up to 44.36%* for single trip and 34.79%* for annual trip 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. Buying cover then will mean you are covered for cancellation from the date specified in your policy.
Our guide on when to buy travel insurance provides more information.
How do I make an insurance claim for a cancelled holiday?
If you need to claim, the process will typically require:
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 signed medical note from your GP if claiming due to illness or injury
A copy of the death certificate if you had to cancel your trip because of a bereavement
Any other kind of evidence that you had to cancel, for example, 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.
Does travel insurance cover cancelled flights?
If your airline cancels your flight, they are generally responsible for providing compensation or arranging alternative flights. However, if the airline fails to provide an alternative within 24 hours, or if your travel is disrupted by a strike that wasn't planned when you booked your cover, your insurance may pay out.
Compare travel insurance quotes MoneySuperMarket
When it comes to choosing the right travel insurance, MoneySuperMarket provides a comprehensive platform to compare policies based on individual needs. You can filter options by cost, multi-trip policies, coverage, or claim excess, ensuring that you find not just the cheapest, but the most suitable cover for your trip.
With the right cancellation cover, you can book your next holiday with confidence, knowing that if the unexpected occurs, you're protected.