Trip cancellation insurance: extra peace of mind

Trip cancellation insurance: extra peace of mind

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01.Jul.2022

When we book a trip in advance it is difficult to foresee all the circumstances that may occur around the dates of the trip. Whether they are work, illness or family reasons, the truth is that many things may force us to cancel the trip.

Many hotels do not reimburse the booking fee and airlines only refund the cost of the ticket when the cancellation is due to reasons beyond the traveler’s control. What should we do then? Can we get our money back?

Agreed refund

To answer this question we have to focus on the moment at which we book our trip. It is at that point when we can invest in our peace of mind, since if we opt for cancellation insurance this will cover all cancellation expenses, as long as the cancellation is due to force majeure and is included in the policy. In this way, the customer guarantees that the amount they have paid for the trip and have previously agreed with the insurer will be reimbursed.

Some insurance companies cover 100% of the cost, while others only guarantee a percentage of the total. Although the amount will always depend on the conditions established in the policy, cancellation insurance generally covers expenses in the event of illness, accident or the death of the policyholder or an immediate family member, or even unforeseen situations such as, for example, work-related reasons.

Cancellation cover is often included in travel insurance.

What is “force majeure”?

What circumstances constitute force majeure? Among the most common are: serious illness of the insured person or of a first degree relative, accident, death; work-related reasons such as dismissal, extension of a contract, starting a new job, or a summons from an official organization.

Other circumstances may include a breakdown or accident involving the insured vehicle, occurring within 48 hours prior to the start of the trip and which makes it impossible for the customer to embark on the trip; or cases in which the insured’s habitual place of residence is declared a disaster area, justifying the insured’s presence there in order to avoid greater evils.

Free cancellation

There is a type of insurance called “free cancellation”, whereby a trip can be cancelled without just cause. Even so, this type of insurance is rare and not offered by all insurers. It is also expensive. Incidentally, fear of traveling is not covered and insurance companies do not usually accept cancellation requests for this reason.

If you are about to book a trip and you think that certain circumstances may make it impossible for you to go on it, opting for cancellation insurance will give you greater peace of mind. Find out about the assumptions and cover offered, so that your pre-trip worries are limited to how to close your suitcase!

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