Basics of Trip Interruption Insurance and Trip Cancellation Insurance

Basics of Trip Interruption Insurance and Trip Cancellation Insurance

When traveling, a major concern for many people is trip interruption or trip cancellation. That’s why some insurance companies provide trip interruption insurance and trip cancellation insurance. It’s important to note that though some people use the names of these insurance policies interchangeably, they are different.

Trip interruption occurs when you start the trip but something unexpected happens forcing you to cut it short. In such a case, a traveler is reimbursed for the part of the trip that they didn’t complete. On the other hand, trip cancellation occurs when you don’t go on a planned trip. Nevertheless, these insurance policies are used when going on organized cruises and tours or when traveling independently.

When to use trip interruption and trip cancellation insurance policies

When you, a family member, or a travel partner is unable to travel, you can use trip cancellation insurance. Essentially, you can cancel the trip because of a death, sickness, or layoff. Your insurer may include other reasons for which you can be reimbursed if you cancel the trip or fail to travel.

A family member back at home can get sick and compel you to travel back home. In that case, you might be reimbursed for the part of the trip that you didn’t complete. Again, your coverage will be affected by the fine print that your insurer provides on the basis of the pre-existing conditions of your loved one.

If a reason that is beyond your control necessitates taking an emergency flight or make you miss your flight, you might be reimbursed by your insurer. For instance, an inclement weather, a strike, or a car accident can make you miss a flight. Additionally, a travel company or airline can go out of business. It can also fail to perform as expected. In any of these cases, your insurer can compensate you for trip cancellation.

Purchase your insurance carefully

It’s important to note that insurers provide different accepted reasons and conditions under which you can be reimbursed for trip cancellation or interruption. What’s more, some insurers do not cover some tour operators or airlines. Therefore, check the travel insurance that you want to purchase carefully to get comprehensive coverage.