Travel Cancellation

How to Insure Against Travel Cancellation

How to Insure against Travel Cancellation?

Everyone looks forward to travelling when it comes to holidays either abroad or within the UK. Perhaps travelling for business isn’t as much pleasure at times, but it can be just as costly and one of the reasons why you should always insure against travel cancellation.

Finding the right policy that offers sufficient cover is of vital importance because there are some insurance companies that have too many exclusions in the small print and why comparing price as well as cover should be a major focus.

Typical Cancellation Cover

Trip cancellation insurance generally covers such things as providers going bankrupt, natural disasters, accidents while on route to the airport/trains, sickness or death of an insured, hijackings and even being called to serve on a jury at the last minute.

The point is, while there are common types of cover which are inherent to most travel cancellation policies, some may have broader cover than others and may provide higher limits.

On the other hand, some policies may have exclusions which would make it difficult to make a claim against a policy so check the small print before choosing which policy to buy.

How to Insure against Travel Cancellation

Exclusions Common to Most Policies

Many people don’t realise that they cannot collect on a travel cancellation policy if they cancel or postpone the trip of their own volition. In other words, changing plans or loss of finances are not reasons generally covered.

Other exclusions might include self-inflicted injuries or illnesses/hospitalisations due to illegal use of drugs. Nonetheless, there are some insurance companies that have an optional cover which allows cancellations for almost any reason for an extra cost.

This is traditionally called a cancellation waiver and it will add a bit to the cost of the policy. The refund may be full or partial so again, read the small print.

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Making a Claim on Trip Cancellation Insurance

Learning how to insure against travel cancellation also means knowing what to do when it is time to make a claim. Usually there is a claims department that will handle the call and a central number to call for that purpose. A claims adjuster working for the insurance company will take the call and most often ask a series of questions to determine whether or not there is sufficient reason to believe the cancellation was covered under the policy. You may be asked to fax or post proper proof of the underlying cause of cancellation so make sure to have all your documents in order.

What to Look for When Comparing Travel Cancellation Insurance

Cost is almost always going to be the first thing on most people’s minds but unfortunately that could lead to purchasing the wrong policy from the wrong company. As mentioned above, carefully weigh trip cancellation cover against exclusions in the small print. If you find two policies which appear to be comparable with one being much less costly than the other it is time to do a little ‘investigative work.’ Take the time to check out the company’s history for paying claims. Online searches often yield results from dissatisfied consumers and the Office of Fair Trading may have information as well.

Don’t forget to look at insurance when travelling inside the UK as well as for trips abroad. It is getting more expensive by the day to travel anywhere and the surcharges which keep increasing add to that expense. Finding the right travel cancellation insurance can save you unnecessary headaches and extreme financial loss if the trip was cancelled through no fault of yours. Make sure to compare prices and find a reputable insurance provider. In the end, you may be thankful that you spent a little extra time and effort protecting yourself from financial losses which could be extreme.

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