How to Shop for Trip Cancellation Insurance

Trip cancellation insurance reimburses you for prepaid, nonrefundable expenses - such as airline tickets - if you are forced to cancel a trip due to an unforeseen emergency. Consider the following information carefully when evaluating the worth of such a policy.

Difficulty: Moderately Easy

Instructions

Things You'll Need:

• Telephones
• Internet Access
• Credit Cards And Loans
• Travel Services
• Trip Cancellation Insurance
• Computers

1. Do some research. Look online, talk to friends and poll travel agents to find the insurance that best suits your travel needs. Read all parts of the policy carefully to make sure you are covered where it really matters.

2. Examine the types of flight, train or cruise cancellations covered by the policy. Often you can be covered if there is a strike, if you are hijacked or if your trip is delayed. Again, read the conditions of the coverage before you buy.

3. Look for policies with the broadest terms. Check the policy's definitions of terms such as "unforeseen," "close family member" and "traveling companion" to be sure they will cover your needs.

4. Check for expiration times and dates, after which the policy would not reimburse you. Policies generally expire after you have returned home, or at the end of the date specified on your travel itinerary.

5. Read exclusion clauses carefully. For instance, most policies do not cover preexisting health conditions.

6. Make sure that the policy covers you for the entire period of your trip.

Tips & Warnings

• If you do decide to purchase coverage, do so well in advance since the premium remains the same no matter when you buy; the sooner you buy insurance before your trip, the longer coverage time you'll have.
• Trip cancellation insurance is useful in the event of an unforeseen emergency: the illness, death or injury of yourself or a close family member or traveling companion; the tour operator, cruise line or airline goes bankrupt before your trip; or if you are quarantined, hijacked, called to jury duty, subpoenaed or if your home is rendered uninhabitable. Policies differ, however, so read them carefully.
• Some cancellation insurance may be available automatically through your credit card company if you book your trip using their credit card. Ask about this service before you purchase insurance elsewhere.
• If you have purchased travel cancellation insurance for a trip that has been delayed, make sure the insurance will automatically cover the trip on the new dates.
• Be sure to buy your policy from a reputable source.