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What is Curtailment?

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The term curtailment is widely used within travel insurance policies, but how many of us actually understand what it means?

Although we don’t like to think about it, sometimes the worst can happen and you may find yourself cutting short your holiday and returning home early. ending your trip before your original return date can mean you are at a financial loss and decide to claim back expenses on your travel insurance – this would be classed as curtailment., what does curtailment cover me for.

So now we understand what curtailment means, it’s worth looking into the different circumstances curtailment will cover you for as this will differ between policies – so be sure to check policy wording carefully.

Generally speaking cover for curtailment entitles you to claim back a pro-rata refund of any pre-paid accommodation, car hire or holiday excursions you will no longer be able to use following your return home. Under some policies curtailment will also cover reasonable travel expenses you’ve had to pay on your return journey unless travel has been arranged for you by your travel insurer.

It is important to note most travel insurance policies will state you can only claim for curtailment under specific circumstances. These usually include;

• You or a member of your party becoming ill or sustaining an injury while on holiday.
• The death, injury or illness of a close relative at home.
• You or a member of your party have been required for jury service.
• News of your home being left uninhabitable (following a burglary, fire or flooding).

Even if curtailment is covered as standard there will be certain restrictions and exclusions, depending on the policy type and cover. For example; not all travel insurance policies will cover for curtailment due to existing medical conditions of non-travelling close relatives or if an act of terrorism was to occur during your trip. Postcard Travel Insurance is amongst very few in the industry that will offer curtailment cover if a close-relative with an existing medical condition becomes ill whilst you are away – provided their condition was completely stable and well controlled before you booked the trip.

Do I need Curtailment in my policy?

Everything’s unpacked, you’ve got your sunglasses on and you’re heading down to the beach to enjoy a well-deserved break, what could possibly go wrong?

Unfortunately, as much as we try to prevent unforeseen circumstances from happening sometimes they are unavoidable – this is why we take out travel insurance and although medical expenses and cancellation is considered to be essential, we should not be overlooking curtailment cover.

Without curtailment cover returning home can be a lengthy, not to mention costly, process.

Is Curtailment covered in my policy as standard?

Many travel insurance policies cover curtailment as standard, however, this may not always be the case; to ensure cover is provided we suggest checking your policy wording before making a purchase.

If you are planning a last-minute holiday you may opt for a policy without cancellation as it is unlikely anything unforeseen will happen in the short time before you travel but be aware – choosing a policy without cancellation could mean you are losing the curtailment cover too!

As some travel insurance policies can be fairly restrictive, it is worth bearing in mind there are a few travel insurers that will offer cover for curtailment for any cause outside of your reasonable control.

Another reason to curtail a holiday is if a terror attack takes place within close proximity to your accommodation. Postcard Travel Insurance, again, is one of few travel insurers that will offer to cover the cost of cancellation or curtailment if your flight or accommodation has been affected by an act of terrorism. Continue reading about terrorism cover here .

How does Curtailment cover affect my insurance premium?

No one wants to be paying over the top for their travel insurance, but the cheapest isn’t always the best policy to suit your travel needs.

When shopping for your travel insurance you will find many companies offer a range of cover levels to suit every holiday and budget; with most covering medical expenses, cancellation and curtailment as standard. We recommend you select a policy which will cover the entire cost of your holiday as some companies will refuse a claim if the policy hasn’t got enough cover for the full cost of the holiday.

Adding cover for curtailment if it isn’t included as standard is likely to incur an additional premium but it may be worth paying a little extra now so you don’t have to later!

How does Curtailment work when it comes to making a claim?

If your policy covers curtailment your travel insurance company will be able to assess a pro-rata refund of any accommodation, car hire and excursions that you have paid for prior to travelling and not been able to use following your return home. For example, if you had a 10-day holiday and came home after 5 days the insurer would refund you for the five days accommodation you could not use.

Your travel insurance policy will pay for any reasonable additional cost of coming home.

So, if you had you buy a new ticket you could claim this back from the insurer. However, if the insurer paid for the new tickets then you would not be able to claim anything. This is because travel insurance policies work on what is called the ‘principle of indemnity’ which means that the policy puts you in the same position after the claim as you were before it. Simply put, because the insurers had paid for you to return home you had not incurred any additional costs.

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• Travel Insurance

Trip Cancellation And Curtailment In Travel Insurance: Understanding Its Benefits And Considerations

by SMCIB on Tuesday, 27 August 2024

Travelling can be exciting, but what happens if things don't go according to plan? This is what happened to a vivid traveller, Siva. Siva had spent months planning his journey. He had purchased his tickets and planned an exciting itinerary. However, he became ill a few days prior to his departure and had to postpone things.

Have you ever experienced anything similar?

It can be rather stressful and depressing, no?

After postponing his vacation, Siva left for his journey two weeks later. This was when Siva got an emergency call. His vacation was cut short, and he had to return home quickly. Unfortunately, he couldn’t enjoy his vacation for as many days as he planned!

And that gives us something to ponder- what if something like this happens to any of us? What should be our next step? How about the expenses that you already incurred but can’t make use of because of such unforeseen situations?

This is when travel insurance's cancellation and curtailment clauses come into play. By being aware of the advantages and factors surrounding trip cancellation and curtailment, you can actually avoid a great deal of worry and financial loss.

Today, we will discuss how this feature in travel insurance can lessen your stress and cut your financial losses.

Let’s not beat around the bush and get straight to the heart of the matter-

Trip Cancellation

While making travel plans is usually thrilling, sometimes unanticipated events occur in life that can throw off your schedule. That is when travel insurance's trip cancellation benefit kicks in. If you have to postpone your vacation for certain covered circumstances, it will cover your non-refundable costs. This may include situations such as illness, injury, or a family emergency, with each policy detailing the specific circumstances that are covered. Let's look at a few typical situations -

• Medical Emergencies Let's say you are ready for your trip, and then all of a sudden, you or a close family member gets sick or hurt. Under such circumstances, travel cancellation insurance may assist in paying for the cost of your reservations.  
• Travel Warnings What if your location becomes unsafe to travel to due to the issuance of a travel alert or restriction? In that case, such travel advisories are often covered by trip cancellation insurance, assuring you won't lose your money.  
• Family Emergencies Experiencing a close relative's death or critical sickness can be hard. If unforeseen circumstances like family emergencies make you cancel your plans, this insurance policy can reimburse you.  
• Natural Disasters Mother Nature may not always be predictable. Trip cancellation insurance can pay for cancellation fees in the event of a hurricane, earthquake, or other natural disaster at your location, enabling you to reschedule your vacation for a safer period.  

While the specifics of coverages can differ between insurance plans, here's a general overview of what's typically included -

Under certain conditions, the insurance provider will reimburse you for covered expenses if you have to cancel your trip before it starts, up to the maximum amount mentioned in your policy plan. These situations include -

• Death Or Serious Illness Of The Insured:  Within 7 days before the departure date, if the insured, as stated on the policy copy, passes away or experiences a serious illness or injury that necessitates at least 3 days in the hospital.  
• Death Of Close Relatives:   This includes the spouse, parents, or children of the insured.  
• Serious Illness Of Traveling Family Members: If the insured's spouse or kid, who is also insured and scheduled to travel, experiences a severe illness or accident that necessitates at least 3 days in the hospital within 7 days before departure.  
• Severe Weather Conditions: Severe weather conditions include events like hurricanes, floods, storms, and other natural calamities. It is important that you remember each insurance provider may have particular requirements or limitations. Always go over your policy documentation to comprehend any applicable additional terms.  

Here are some of the key benefits that you can enjoy -

• Safeguarding Your Investment Travel plans can be expensive, and it's upsetting when you think that you might lose that investment because of unanticipated events. If you have to cancel your trip before it starts for any of the covered reasons specified in the policy schedule, trip cancellation insurance reimburses you for non-refundable expenses. Your financial investment is safeguarded by this coverage, which covers costs such as airline tickets, hotel reservations, and pre-paid activities. For instance, Siva’s friend Ken spent all his savings on his European trip. When he met with an accident 2 days before his departure, he was devastated. He had medical bills to pay, but the money he spent on his trip worried him even more. But because he was clever enough to get travel insurance that covers trip cancellation, his insurer paid for the non-refundable expenses.  
• Travel Worry-Free Unexpected cancellations add to the already stressful experience of travel preparation. You can feel more at ease knowing that you have insurance that pays for emergencies and other covered events. Your focus could be on enjoying your travel plans, free from the worry that unanticipated events will ruin your trip, as you are insured against any financial loss.  
• Broad Protection For Multiple Scenarios For several cancellation reasons, most of the insurance plans provide comprehensive coverage. You may be sure that your insurance covers situations like a medical emergency, a family crisis, travel advisories, or a job loss.  
• Protection From Unexpected Costs Your insurance shields you from losing your invested funds in case you have to cancel your trip for a covered reason. This implies that you won't have to worry about paying for things like lodging, airfare, or other pre-paid plans out of pocket.  

Trip Curtailment

When discussing travel insurance, particularly in India, the term "trip curtailment" denotes the necessity of shortening your trip and returning back home earlier than planned. Your policy will cover this circumstance, which usually involves reimbursement for the unused part of your trip, along with any additional expenses incurred because of the early return.

Common Reasons for Trip Curtailment

Trip curtailment coverage may apply in the following situations -

• Medical Emergencies: In the scenario that you or a close relative becomes very ill or injured while travelling and has to return home before the planned departure time.  
• Family Emergencies:  These are circumstances such as a close family member's demise or serious illness that force you to shorten your trip.  
• Travel Warnings Or Safety Concerns:  In case a major incident or natural disaster impacts your trip, you must return early to ensure your safety.  
• Unexpected Work Issues: One such instance would be if you had an emergency at work that needed you to return home right away.  

The insurance company will pay up to the amount stated in your policy documents if you have to shorten your trip before your scheduled return date for certain covered causes. What usually is covered is as follows -

• Medical Necessity: If you get sick or hurt and your doctor suggests that you have to shorten your trip in order to get necessary medical care, the insurance will pay for those costs. To be eligible for this coverage, you must be receiving direct care and attendance from a doctor.  
• Family Emergencies: The insurance covers the cost of making the required adjustments to your travel schedule in case your spouse, parents, parents-in-law, a child living with you in India and not travelling with you on the trip, or any of them pass away, suffer a terrible illness, or pass away suddenly.  
• Hospitalisation of Family Members : If you are travelling with your spouse or child and they need to be hospitalised for a minimum of 3 days within the 7 days prior to your departure, you may be covered.  

Important Reminder!

Insurance companies may have specific guidelines, so it is a good idea to carefully read the details of your policy in order to comprehend any restrictions that may apply.  

Benefits of trip curtailment coverage

The following are some of the main advantages of trip curtailment coverage:

• Reimbursement For Unused Trip Costs If you find yourself having to shorten your vacation, trip curtailment coverage assists you with recovering the costs of the portions of your trip that you will not be using. This covers charges such as unused lodging and tour expenses, ensuring you don't suffer financial setbacks.  
• Protection Against Additional Costs Apart from compensating for trips that are not used, this coverage can also assist with additional expenses that you might incur if you decide to return home early, for instance, additional transportation expenses. However, the exact details may change according to your insurer.  
• Emergency Assistance If unanticipated circumstances compel you to shorten your vacation, this coverage offers crucial financial assistance. It relieves you of the burden of worrying about travel expenses so you can concentrate on dealing with the situation.  
• Tranquilly Of Mind You may travel with confidence, knowing that you won't suffer significant financial losses if something goes wrong and you have to return home early. This comfort given by trip curtailment insurance reduces your anxiety about possible setbacks, so you may enjoy your journey more.  

Wrapping It Up,

Coverage for trip cancellation and delays is very similar to having a reliable companion in the travel industry. Like how a trusted friend stands by you when things go awry, this insurance has your back. Remember that this safety net when you travel makes you more confident when you go out on your adventures.

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Trip Delay, Trip Interruption and Trip Cancellation Insurance Explained

What does trip delay insurance cover?

The travel delay  benefit helps you get through short(ish), unexpected pauses in your travel plans. It can reimburse you for lost pre-paid expenses as well as eligible costs you incur because of the delay, including meals, accommodations, communication and transportation. Note that for such an event to be considered a delay, it must last for the minimum time stated in your plan. Also, the delay must have been caused by a covered reason as listed in your plan, such as a travel carrier delay or lost travel documents.

How does trip delay insurance work in real life? Let’s say your 6 p.m. flight to Orlando is grounded due to a storm, and the next available flight doesn’t leave until 9 a.m. the next morning. Here’s what trip delay insurance may cover:

• Your dinner and breakfast
• Your hotel room for the night
• Your cab ride to the hotel from the airport and back
• The cost of the hotel room you had booked for your first night in Orlando (if the hotel won’t refund your money)

There are limits, of course: travel delay benefits reimburse reasonable expenses up to the limit shown on your letter of confirmation, for example $200/day. Don’t expect your travel insurance to pay for a lavish sushi dinner and a stay at the Ritz-Carlton.

But wait: Why do you even need travel insurance for this scenario? Aren’t airlines supposed to pay for your hotel room and meals if your flight is delayed? Not necessarily.

Most U.S. airlines have agreed to provide travelers with a hotel voucher and/or meal voucher when they experience a controllable flight cancellation or delay of a certain length. A controllable delay/cancellation is one that was caused by a reason within the airline’s control, such as a crew shortage or a mechanical issue. If the delay/cancellation is caused by a reason out of the airline’s control, they’re not obligated to offer you anything other than a refund (if you choose not to fly) or a seat on a different flight. That’s why you need travel insurance!

What does trip interruption insurance cover?

A  trip interruption  occurs when a traveler must unexpectedly cut short their trip and return home. Additionally, interruption can cause you to stay at your destination longer than originally planned (not always a bad thing, right?) Trip interruption insurance can refund lost prepaid costs, minus any available refunds and up to the maximum benefit amount, and cover the cost of your extra accommodations and/or your trip home.

Trip interruption benefits only apply if the interruption is caused by a covered reason. Allianz Travel Insurance plans list many covered reasons for interrupting or canceling your trip. Some common covered reasons include the serious covered illness or injury of the traveler, traveling companion or a family member; a natural disaster that renders your home or your destination uninhabitable; and the cessation of services by your airline, cruise line or other carrier, causing you to miss more than half your trip.

Trip interruption insurance is essential for those travel emergencies you just can’t predict. Imagine you’re in the middle of a week-long  safari in the Serengeti  when you receive word that your mom has been hospitalized with pneumonia. You need to return home ASAP! With the help of the travel experts on our 24-hour assistance team, you can get on the first available flight out of Kilimanjaro and travel back to the U.S. Trip interruption insurance can help cover the cost of the flight and reimburse you for the unused portion of your safari.

One key condition to keep in mind with trip interruption is that, in order to take full advantage of the benefit, you need to inform all your travel suppliers (hotels, tour operators, etc.) within 72 hours of finding out your trip will be interrupted. So, in the heat of the moment, be sure to keep your cool and communicate your change of plans as needed.

What does trip cancellation insurance cover?

Trip cancellation  insurance covers situations when you must cancel your trip before you leave for a covered reason (generally, the same covered reasons that apply to trip interruption coverage.) Trip cancellation benefits can refund the prepaid, nonrefundable costs of your trip, such as airfare, cruise tickets, tour bookings and hotel reservations. Plus, if you prepaid for shared accommodations, and your travel companion needs to cancel their trip for a covered reason, you can be reimbursed additional accommodation fees, which is huge if you’re taking a cruise.

Similar to trip interruption, the 72-hour notification rule applies here as well. So be sure to let your airline, tour operator, cruise line and others know about the trip cancellation in a timely fashion.

What else should you know when your trip doesn't go as planned?

It’s possible for a trip delay to turn into a trip interruption if you’ve lost more than half the total length of your trip scheduled trip length due to a covered travel delay. Let’s say you’re about to about to leave for a five-day Caribbean cruise, but a blizzard grounds your Miami-bound plane for two days. By the time you get to Florida, your ship is long gone, and you can’t find a flight to its next port of call. You may be able to make a trip interruption claim.

Just remember that when your trip is delayed or interrupted, you need to do everything you can to continue your scheduled plans. Try to catch up with your cruise ship or tour group (our hotline staff can help). Document your efforts. Keep your receipts. And as we’ve mentioned, notify all your travel providers and your insurer as soon as possible once you cancel your trip. Here are some  tips on how to use your trip delay benefit —and how you know it’s time to cancel the trip.

Always read your plan documents carefully so you understand your coverage, and call Allianz Global Assistance if you have any questions. Travelers covered by our insurance plans can access 24-hour assistance anytime via the Allyz ® TravelSmart app or by calling 1-800-654-1908 (from the U.S.) or 1-804-281-5700 (collect). Wishing you safe—and uninterrupted—travels!

Related Articles

• Tips For Dealing With a Trip Cancellation
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What Is Curtailment Travel Insurance?

In most cases, travel insurance policies cover a policyholder’s cancellation of their vacation due to ‘insured occurrences,’ such as illness, injury, or death. Curtailment is the term for this.

Whats the difference between cancellation and curtailment?

Although the vast majority of us had a terrific time, even the best-laid plans can go wrong for a variety of reasons…

When David Cameron was Prime Minister, he had to cut two vacations short because he couldn’t obtain a signal on his phone in the West Country!

Prime ministers are likely to shrug off the consequences of taking shorter vacations. However, if we do not have the proper travel insurance, it can be not only disappointing, but also pricey.

Curtailment is the term used in the insurance industry to describe the practice of ending a vacation early. And in this post, we’ll go through exactly what Curtilament covers, so you’ll be ready even if you have to cut your vacation short.

What is insurance curtailment?

Obtaining compensation for pre-booked flights and accommodations can be a frustrating, if not impossible, procedure if you have to cancel or cut your trip short. However, if you do need to file a curtailment travel insurance claim, rest confident that Travel Claims Facilities will be able to assist you.

In a clear and easy-to-understand manner, this page will explain what curtailment travel insurance is, what you can claim for, and how to start the claims process.

If you have to cut your vacation or trip short and come home earlier than anticipated, curtailment travel insurance will cover you. This could be as a result of a serious sickness or injury, or because a close member became ill or died while you were abroad.

Most of the time, the help team will have been involved in your case and will have taken care of any incurred medical expenses; nonetheless, you may need to file a claim for:

• Unused pre-paid aspects of your holiday or trip that your tour operator or other supplier has not reimbursed to you, such as lodging.

Any payment made under this section is calculated on a pro-rata basis, beginning with the day of your forced return home.

You may be qualified to file a claim if you had to cut your trip short and return home early due to one of the following reasons:

• Unless a pre-existing medical condition has been stated, acknowledged in writing, and any additional premium has been paid, your claim is due to a pre-existing medical condition.
• You’re filing a claim because a non-traveling close relative or business associate has a pre-existing condition.

If you’re ready to file a claim, go to the main claims form page to get a copy of your claim form. You should submit your claim using this form.

In order to support your claim, the claim form clearly explains what extra information and evidence is required. We strongly advise you to keep duplicates of anything you send us in case the originals are lost in the mail.

Please complete all claim form questions as completely, truthfully, and accurately as possible, since this will speed up the processing of your claim.

All claim processing times are subject to seasonality and receipt of your submitted documentation.

Please visit our Claims Department page for more information about our Claims Department and the claims process.

Can I claim for curtailment?

The policy’s curtailment portion protects you if you have to cut short your vacation or trip by returning home early for a variety of reasons. You can get reimbursed for the following expenses:

• Based on a pro-rata fraction of these services you have lost, the unused portion of the travel and accommodation services you ordered, and

Does travel insurance cover if you cancel the trip?

If you need to cancel your flight, travel insurance may be able to reimburse you. However, this is normally only done in exceptional instances, such as when you’ve had to cancel a flight or vacation due to illness or accident. Bereavement or job loss are examples of justifiable cancellations. Find out more in the sections below.

Does trip insurance cover illness?

If you, a traveling companion, or a family member, get sick before your trip and a doctor certifies that you’re too unwell to travel, travel insurance with Trip Cancellation coverage will cover you. If a non-traveling family member is hospitalized due to illness and you are unable to make the trip, you may be covered.

It’s possible to get sick enough from the flu to have to cancel a trip if you or a family member has a severe case of the flu, or if there’s an underlying health condition that can intensify or prolong flu symptoms.

Regardless, if you are unable to travel due to illness, it is critical that you have your feelings confirmed and your diagnosis documented by a doctor. If you want to be compensated for your non-refundable travel charges if you have to cancel your trip, you’ll need to provide medical evidence.

Also see: Pre-Existing Medical Conditions and Travel Insurance: What You Need to Know

If you get sick with the flu or another sickness while on vacation, Generali travel insurance with medical coverage can assist pay for medical treatment. If you get sick while on vacation, Trip Interruption and Travel Delay coverages, which are included with all of our plans, can help.

Trip Interruption coverage can pay you for the expense of prepaid travel arrangements that you are unable to take because you are ill (accommodations, tours, flights event tickets and more).

If you are unexpectedly delayed for a specific period of time during your trip, Travel Delay coverage can compensate you for reasonable out-of-pocket expenses such as hotel rooms, meals, and transportation.

What is Visa curtailed?

What does it signify when someone’s permission is revoked? Curtailment of permission means that your Student visa’s expiration date is shortened (moved forward), thereby giving you a new visa expiration date.

Is there a travel insurance that covers Covid 19?

If you’ve had all of your vaccinations, you’ll be able to go abroad without a visa starting November 1st. However, transit and destination countries may impose entrance limitations, such as quarantine requirements. Check sure you can purchase travel insurance for the destination you plan to visit before you depart.

When you book a ticket or trip with some tour operators or airlines, you may be eligible for free ‘COVID insurance.’ Always read your travel insurance coverage to make sure you’re aware of what it covers. It’s possible that free ‘COVID insurance’ just covers COVID-19 and nothing else. It may also be granted by an overseas insurance company, putting it under the jurisdiction of that country’s regulations. If this is the case, it is unlikely to be a suitable substitute for comprehensive Australian travel insurance.

Even if you are unable to obtain coverage for COVID-19, travel insurance is still required. Traveling does not always go as planned. If you become sick while traveling, have to cancel your plans, or your luggage and important documents are lost or stolen, and you don’t have travel insurance, you’ll have to cover the charges out of your own money. If you’re still not convinced, check out CHOICE’s explanation of why you should buy travel insurance.

• Is the Smartraveller advise level for the countries you’ll be visiting covered by your insurance? Many destinations are currently classified as level three – ‘Reconsider your need to travel,’ and not all travel insurance companies cover them.
• Is evidence of insurance for COVID-19-related medical expenses required by your destination? Singapore, for example, demands a minimum of SGD $30,000 in coverage.
• Is your vacation covered for the entire duration? Can you, for example, extend your coverage if you have to stay in a foreign country longer than intended due to a flight cancellation?
• Are you protected for stopovers on your journey to your destination? Is there a time limit on how long you may stay at the stopover location? What happens if you’re stranded for a long time?
• Are you protected if you or a traveling companion tests positive for COVID-19 and you can’t travel or your stay is extended? What if you’re forced to isolate yourself because you’re in close proximity to someone who has tested positive?
• Are you reimbursed for cancellation charges if a business colleague or a family member back home gets COVID-19 and you have to leave sooner than planned?
• What if you were planning on staying with someone but they have COVID-19? Or is your hotel or tour company forced to close as a result of COVID-19? Are your out-of-pocket costs covered?
• If you’re going on a cruise, take extra precautions. For multi-night cruises, some travel insurers may not provide COVID-19 coverage.
• Are you protected in the event of a claim resulting from government travel bans, border closures, or enforced quarantine/self-isolation rules at your destination?

The Bradstone* family from Melbourne was planning a visit to Queenstown, New Zealand, to see relatives. However, due to a lockdown in Melbourne, they were forced to abandon their trip. Their claim for cancellation expenses was disallowed by their travel insurer.

• Make sure you’re protected if your leave is canceled due to a COVID-19 outbreak if you’re an important healthcare professional like a pharmacist, nurse, doctor, or paramedic.

Ask your travel insurer and read the product disclosure statement for answers to these questions (PDS). Read our tips on how to read the PDS for further information.

What is a cancellation plan?

A trip cancellation policy will compensate you for your prepaid, forfeited, and non-refundable charges if you are unable to take a trip due to an unanticipated circumstance. Your policy may assist cover expenditures up to the time and date of your departure, depending on the plan.

Trip cancellation insurance is frequently marketed as an add-on to a base travel insurance policy, although some travel insurance providers offer it as a separate policy. Additional coverage categories, such as cancel for any reason coverage, are available with some basic trip cancellation policies.

What is grid curtailment?

Curtailment is the deliberate reduction in output below what could have been achieved in order to balance energy supply and demand or owing to transmission restrictions in electric grid power plants. There are various sorts of curtailment, and the term is not rigid. The most common is “economic dispatch” (low market price).

Curtailment is the loss of potentially valuable energy, and it has the potential to affect Power Purchase Agreements. Using all available energy, on the other hand, may necessitate costly means such as additional power lines or storage, making it more expensive than letting surplus power go unused.

What does ‘curtailment’ mean in travel insurance?

• Post author By Compare Insurance
• Post date 9th February 2022

When you go on holiday, you never like to think that the worst-case scenario will come to pass. Sometimes, however, it does, and you may need to cut short your holiday plans to return home, potentially losing a small fortune as a result. When you take out a travel insurance policy, the vast majority of them will include something called a ‘curtailment’ clause which covers you for certain insured events which might force you to cut your holiday short.

What might curtailment cover?

You need to read the small print of your insurance policy very carefully to see what the curtailment clause might cover. On the whole, they will see you receive a pro-rata refund on any pre-booked accommodation, excursions or vehicle hire you’ve arranged as part of your holiday, should certain unavoidable life events occur while you’re on vacation.

These insured events might include you or a member of your party becoming ill or being injured whilst on holiday, or the death, injury or serious illness of a family member at home. Other reasons may include your compulsory call up for jury service, a terrorist attack on your holiday destination or your home being made uninhabitable by something like a fire, flood or serious burglary.

What can you claim?

Every travel insurance firm will have different curtailment clauses, so you need to scrutinise exactly what yours will cover you for. Most will make sure you are refunded for any hotel bills or self-catering accommodation you cannot use because your holiday has been cut short. Some will also grant you pro-rata refunds on car hire or for any pre-arranged excursions and trips out that you won’t be able to take up.

Taking out a travel insurance policy with a curtailment clause gives you peace of mind when you go on holiday, and knowing you’re covered for unforeseen and deeply traumatic incidents can be a great comfort. If the worst happens, there is a safety net in place to make sure your return home is as smooth, stress-free and straightforward as possible, so you’re not left out of pocket.

For more information on the holiday insurance cover  offered by Compare Insurance, simply visit our main website or get in touch today.

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Curtailment Meaning: What is It in Terms of Travel Insurance?

Travel insurance is a crucial safety net for travelers, offering protection against various unforeseen events that can disrupt your journey. One important aspect of travel insurance is travel curtailment. Understanding travel curtailment can help you make informed decisions and ensure you are adequately covered in case you need to cut your trip short. In this guide, we’ll explore what travel curtailment is, common reasons for it, how it’s covered in insurance policies, and tips for filing a claim.

Table of Contents

What is Travel Curtailment?

Travel curtailment refers to the need to cut a trip short and return home earlier than planned due to unexpected events. It is different from trip cancellation, which occurs when you need to cancel your trip before it starts. Curtailment can happen during your trip, forcing you to abandon the remainder of your travel plans.

Reasons for Travel Curtailment

There are several reasons why you might need to curtail your trip:

• Family Emergencies: Unexpected situations like the illness or death of a family member.
• Medical Reasons: If you or a travel companion falls seriously ill or gets injured.
• Natural Disasters: Events such as earthquakes, hurricanes, or floods that make it unsafe to continue your trip.

How Travel Curtailment is Covered in Insurance Policies

Travel insurance policies typically include coverage for curtailment, reimbursing you for non-refundable expenses and additional costs incurred to return home. Here’s how it generally works:

• Coverage Details: Policies usually cover the cost of unused travel and accommodation bookings, as well as any additional travel expenses required to get you home.
• Claim Process: To file a claim, you will need to provide documentation, such as medical reports, death certificates, or proof of the event that caused the curtailment.

Understanding Policy Exclusions

Not all curtailment scenarios are covered. Common exclusions include:

• Pre-Existing Conditions: If the reason for curtailment is related to a medical condition you had before purchasing the policy.
• Lack of Official Documentation: Claims without proper documentation or evidence may be denied.

Tips for Choosing a Comprehensive Policy

• Read the policy details carefully to understand what is covered and what is not.
• Opt for policies that offer comprehensive coverage, including a wide range of curtailment reasons.

Tips for Filing a Travel Curtailment Claim

Filing a travel curtailment claim can be straightforward if you follow these steps:

• Notify Your Insurer: Inform your insurance company as soon as possible about the need to curtail your trip.
• Gather Documentation: Collect all necessary documents, such as medical reports, travel itineraries, and receipts for additional expenses.
• Submit Your Claim Promptly: Ensure that you file your claim within the timeframe specified by your insurance policy.

Read also: Understanding Travel Insurance: What It Is and What It Covers

Understanding travel curtailment meaning and how it works is essential for any traveler. It ensures you can handle unexpected disruptions to your trip without incurring significant financial losses. Always review your travel insurance policy carefully and choose one that offers comprehensive curtailment coverage. This way, you can travel with peace of mind, knowing you’re protected if you need to cut your trip short.

Aisha Liyana

Aisha Liyana, an expert in the Malaysian insurance market, specializes in life, health, and property insurance. Her articles, rich in...

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Trip Cancellation Insurance Explained

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Table of Contents

What is trip cancellation insurance?

Covered reasons for trip cancellation, what is not covered by trip cancellation insurance, cancel for any reason trip insurance, is trip cancellation insurance expensive, different ways to get trip cancellation insurance, which insurance coverage is best for me.

When booking travel, particularly expensive trips consisting of nonrefundable reservations, it makes sense to consider trip cancellation insurance since it can protect your deposit if your plans do not materialize due to unforeseen events. However, not every reason for canceling a trip will qualify for coverage, so you’ll want to familiarize yourself with the basics of trip cancellation insurance.

Trip cancellation coverage can be purchased as part of a comprehensive travel insurance policy , or you can receive it for free when you hold certain premium credit cards. The benefit is designed to protect prepaid, nonrefundable reservations, including flights, hotel reservations and other bookings if the trip is canceled due to an extraordinary circumstance. Each policy will state exactly which events are considered valid reasons for cancellations.

With COVID-19 still affecting travel plans, you’ll want to pay close attention to which reasons for cancellation due to the pandemic are valid. For example, wanting to cancel a trip you booked a while ago because your destination now has rising COVID-19 numbers and you’re afraid to travel is not likely a valid reason.

If you want to be able to cancel a trip for truly any reason, consider the Cancel For Any Reason supplemental upgrade when purchasing your insurance policy. CFAR will allow you to get up to 75% of your trip investment back as long as the trip is cancelled at least two days before departure.

» Learn more: Does my travel insurance cover the coronavirus?

Imagine you’ve booked a two-week vacation to Italy costing $5,000 ($1,000 flight, $3,500 hotel and $500 excursions), all of which is nonrefundable. Then, a week before your departure date, you fall and break your leg.

So, what does trip cancellation insurance cover?

If you have trip cancellation insurance, you’ll be able to get your entire prepaid, nonrefundable trip cost back (as long as the entire amount was insured), since injuries that necessitate medical treatment and prevent you from taking your trip qualify as a covered reason.

Other covered reasons include death of your traveling companion, inclement weather that results in disrupted service, jury duty, terrorist incident, job termination and other extraordinary events.

Although this is not an entire list of all the covered reasons, generally the cancellation must be due to unforeseen circumstances to qualify for a reimbursement. Review the fine print of your policy for the details of exactly which reasons are covered. When seeking reimbursement, you’ll need to submit claims to the insurance provider to substantiate your claim.

Although a wide range of reasons allow you to receive your prepaid, nonrefundable travel expenses back in the event of a trip cancellation, there are important exclusions to know about.

Trip cancellation insurance will not cover losses arising from self-harm, foreseeable events, acts of war, taking part in activities considered dangerous (e.g., skydiving, bungee jumping, endurance races, etc.), a felony, childbirth, dental treatment and more.

» Learn more: How to find the best travel insurance

So what if you want the flexibility to cancel your trip for reasons other than those covered by your policy? For that, you're going to need the CFAR insurance mentioned above.

CFAR is often available as an add-on to travel insurance policies, and while it can come in handy if you want to cancel your trip just because, you're not likely to get all your money back.

Most CFAR policies will only reimburse 75% of your nonrefundable travel expenditures.

» Learn more: Best travel insurance with Cancel For Any Reason Coverage

The price of trip cancellation insurance can vary based on the traveler’s age, destination, length of trip, cost of trip and insurance company.

Using the same $5,000, two-week trip to Italy as mentioned above, a search of policies on SquareMouth (a NerdWallet partner) ranged from $115 to $470, representing 2.3% to 9.4% of the total trip cost.

» Learn more: How much is travel insurance?

All policies provide 100% coverage of the trip cost, however the more expensive plans usually have higher limits on benefits like medical evacuation.

If you’re only looking for trip cancellation coverage and no other protections, a policy equating to 2.3% of the total trip expenses seems reasonable.

On your travel credit card

Trip cancellation coverage can be included as part of a comprehensive travel insurance plan or offered as a benefit on premium travel credit cards.

For example, the Chase Sapphire Reserve® will reimburse you or your immediate family members up to $10,000 per trip. The Business Platinum Card® from American Express and many other American Express cards also offer up to $10,000 in trip cancellation coverage. Terms apply.

These premium cards also offer other insurance benefits like trip interruption coverage, emergency assistance services, trip delay and more.

If you travel often and typically purchase trip cancellation coverage, consider applying for one of the cards that offer complimentary travel insurance . Not only will you get trip insurance benefits, but you will also get other travel perks and statement credits that can partly offset the annual fee.

Supplement by purchasing policies out-of-pocket

If the coverage limits offered on the cards aren’t sufficient or you’re looking for more protections (e.g., coverage for emergency medical expenses), you’d be better off with a travel insurance . Although you’d incur an additional cost for purchasing a comprehensive plan, you’d have many more benefits not commonly found in the insurance policies offered by the credit cards.

A comprehensive trip cancellation policy is likely to cover canceled flights so long as the flight or flights are nonrefundable and are a part of the total, prepaid expenses covered by your policy. Insurance provided by travel cards typically includes trip delay or cancellation coverage so long as you used that card to pay for your flight reservations.

If you're forced to cancel your trip due to extraordinary circumstances beyond your control, travel insurance will provide coverage for some or all of your nonrefundable travel expenditures, depending on your policy. Covered events will vary, so be sure to review the terms of any plan you intend to purchase.

Trip cancellation insurance is available for purchase from a wide range of companies and is often included as a benefit on travel credit cards. Under certain circumstances, it provides coverage for prepaid travel expenses in the event that you cannot complete your trip as planned.

A comprehensive trip cancellation policy is likely to cover canceled flights so long as the flight or flights are nonrefundable and are a part of the total, prepaid expenses covered by your policy.

Insurance provided by travel cards

typically includes trip delay or cancellation coverage so long as you used that card to pay for your flight reservations.

If you’re going on a trip consisting of costly flights, hotel reservations and excursions and would like to protect your prepaid, nonrefundable deposit but do not need any other coverage, a minimally priced trip cancellation insurance policy is a good choice.

If you have a premium travel credit card , check if you already have trip cancellation insurance as a benefit before you purchase a policy.

However, if you’re looking for additional coverage like travel medical insurance , and/or a basic plan doesn’t have adequate limits, consider a comprehensive travel insurance policy from providers such as AAA , Allianz , and AIG . Read NerdWallet's full analysis of the best travel insurance companies here .

Insurance Benefit: Trip Cancellation and Interruption Insurance

The maximum benefit amount for Trip Cancellation and Interruption Insurance is $10,000 per Covered Trip and $20,000 per Eligible Card per 12 consecutive month period.

Eligibility and Benefit level varies by Card. Terms, Conditions and Limitations Apply.

Please visit americanexpress.com/benefitsguide for more details.

Underwritten by New Hampshire Insurance Company, an AIG Company.

How to maximize your rewards

You want a travel credit card that prioritizes what’s important to you. Here are some of the best travel credit cards of 2024 :

Flexibility, point transfers and a large bonus: Chase Sapphire Preferred® Card

No annual fee: Wells Fargo Autograph℠ Card

Flat-rate travel rewards: Capital One Venture Rewards Credit Card

Bonus travel rewards and high-end perks: Chase Sapphire Reserve®

Luxury perks: The Platinum Card® from American Express

Business travelers: Ink Business Preferred® Credit Card

on Chase's website

1x-10x Earn 5x total points on flights and 10x total points on hotels and car rentals when you purchase travel through Chase Travel℠ immediately after the first $300 is spent on travel purchases annually. Earn 3x points on other travel and dining & 1 point per $1 spent on all other purchases.

60,000 Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $900 toward travel when you redeem through Chase Travel℠.

1x-5x 5x on travel purchased through Chase Travel℠, 3x on dining, select streaming services and online groceries, 2x on all other travel purchases, 1x on all other purchases.

60,000 Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $750 when you redeem through Chase Travel℠.

1x-2x Earn 2X points on Southwest® purchases. Earn 2X points on local transit and commuting, including rideshare. Earn 2X points on internet, cable, and phone services, and select streaming. Earn 1X points on all other purchases.

50,000 Earn 50,000 bonus points after spending $1,000 on purchases in the first 3 months from account opening.

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What’s the Difference Between Trip Cancellation, Trip Interruption, and Trip Delay?

Chances are, you didn’t plan your trip knowing you would have to cancel it, or cut it short. You may realize that there’s a possibility that a family member may get sick, a weather event may occur, or your airline may go on strike, but you plan ahead anyway, booking travel and paying trip deposits. That’s when trip cancellation, trip delay and trip interruption coverage is helpful.

However, many travelers do not understand what the difference is between each of those types of coverages.

What is Trip Cancellation Coverage?

The Trip Cancellation benefit in a travel insurance policy can provide coverage for non-refundable trip payments in the event that a trip has to be cancelled for a covered reason.*

Trip Cancellation is one of the more common travel insurance claims filed, and is one of the main reasons people purchase a travel insurance plan. While no one plans on having to cancel a trip once we book it, the unexpected can happen.

Cancel For Any Reason Coverage

Travelers who want coverage for cancellation reasons beyond those that are included in a base Arch RoamRight policy may be able to purchase the Cancel for Any Reason optional upgrade.

Cancel for Any Reason allows you to cancel your trip for any reasons up to 48 hours prior to departure. This benefit can reimburse you up to 75% of your trip cost. However, to be eligible for this upgrade, you must meet the following criteria:

• Purchase your insurance within 21 days of making your initial trip deposit, and
• Insure all of your trip deposits that are subject to cancellation penalties.

The Cancel for Any Reason upgrade is available with the Preferred , Elite , Pro , and Pro Plus plans. While Cancel for Any Reason is not available to residents of New York, they have similar coverage under a benefit called Cancel for Fortuitous Reasons. Please contact customer service or see your policy for specific details.

Those who are concerned about having to cancel for work-related reasons can also purchase the Cancel for Work Reasons optional upgrade. Cancel for Work Reasons allows you to cancel your trip for reasons such as being forced to work during your previous scheduled vacation, being transferred to a different city, and others. Please note that Cancel for Work Reasons is not available for individuals who are self-employed, or are company owners or partners.

The Cancel for Work Reasons upgrade is available with the Preferred, Elite, and Pro plans. With the Pro Plus plan, Cancel for Work Reasons is automatically included at no additional cost.

Example of a Trip Cancellation Claim:

One common example of a Trip Cancellation claim that we see involves families having to cancel their trips as a result of a sick child.

The video below is based on a real story from an Arch RoamRight traveler who had to cancel their trip after their daughter got strep throat when they were supposed to depart.

What is Trip Interruption Coverage?

The Trip Interruption benefit can provided coverage for non-refundable trip payments in the event a trip must be cut short or started late for a covered reason.*

Example of a Trip Interruption Claim:

Since a claimable Trip Interruption event can happen at the start or the middle of your trip, there are a number of examples of this type of coverage being applicable.

A common example of Trip Interruption is for travelers flying to a port of embarkation for a cruise. If the flight is delayed for a covered reason and it is long enough to force you to miss the cruise departure, the Trip Interruption benefit can reimburse you for unused, prepaid non-refundable payments or deposits for your land or water travel arrangements, plus the additional cost paid to either join your cruise or travel via alternate travel.

Another example is when you are on your trip, enjoying your vacation and you receive bad news from back home. If it is for a covered reason* and you need to return home immediately, trip interruption will help pay for the difference in costs in airfare and transportation, as well as any unused, pre-paid non-refundable payments or deposits.

What do Trip Cancellation and Trip Interruption benefits cover?

As with any case, check your policy details to make sure you understand how the coverage works specifically for the policy you purchased.

For most Arch RoamRight plans, trip cancellation or interruption coverage is available for the following Unforeseen reasons:

• Your, a Family Member’s, or a Traveling Companion’s, or a Business Partner’s or a Traveling Companion’s Family Member’s death, that occurs before departure on Your Trip; or
• Your, a Family Member’s, or a Traveling Companion’s or a Business Partner’s or a Traveling Companion’s Family Member’s covered Sickness or Injury, that: a) occurs before departure on Your Trip; b) requires Medical Treatment at the time of cancellation; and c) as certified by a Physician, results in medical restrictions so disabling as to cause Your Trip to be cancelled; or
• for Other Covered Events, as outlined below.

This is an abbreviated list of the most common covered events for trip cancellation or interruption. For coverage, an event must be unforeseen at the time of purchase. For a full list of events and coverage details, please refer to the policy.

• Sickness, accidental injury or death
• Being hijacked, quarantined, subpoenaed, or asked to serve on jury duty
• Home or destination is made uninhabitable
• Traffic accident en route to departure
• Death or hospitalization of host at destination
• Terrorist attack
• Revoked military leave
• Inclement Weather
• Bankruptcy of travel supplier
• Job loss or lay off
• Natural disaster at destination
• Mandatory evacuation
• You or your traveling companion’s normal pregnancy
• Extension of school year

What is Trip Delay Coverage?

The Trip Delay benefit can provide coverage for incurred costs associated with a travel delay if the start of a trip must be delayed for a covered reason.*

Example of a Trip Delay Claim:

It is common to see Trip Delay claims related to airline delays. With air travel being unpredictable and often influenced by weather and other factors, a severe delay in your flight can force dramatic changes for your scheduled trip.

For long flight delays, travelers may be forced to spend money that they didn’t anticipate spending, such as buying an additional meal at the airport or spending a night at the hotel to take a flight rescheduled for the next day. Under your Trip Delay benefit, you can be covered for those related expenses.

When choosing your travel insurance plan, it is important to look at the benefit limits and time triggers related to the Trip Delay benefit. With Arch RoamRight and most other travel insurance plans, your trip delay must exceed a specified amount of time in order to be eligible for coverage, and coverage varies by plan.

What do Trip Delay benefits cover?

Trip delay coverage is for travel hazards resulting from:

• any delay of Your Common Carrier;
• a traffic accident in which You or Your Traveling Companion are involved while en route to departure (must be substantiated by a police report);
• Your or Your Traveling Companion’s lost or stolen passports, travel documents or money (must be substantiated by a police report);
• quarantine, hijacking, Strike, Natural Disaster, terrorism or riot;
• a road closure (substantiated by the department of transportation, state police, etc.) due to severe storms preventing You from getting to the point of departure for Your Trip;
• Your Sickness or Injury or the Sickness, Injury or death of Your Traveling Companion, or Family Member traveling with You.

*These covered reasons, as well as exclusions and limitations, can be found in your policy .

Note: Available plans and coverages may have changed since this blog was published.

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What is Curtailment?

Navigating travel's unexpected turns.

Tommy has over 15 years experience within the insurance industry, and his primary focus is helping travellers find the right cover for their medical conditions.

Travel is a voyage. A narrative often full of singular experiences, thrilling sensations, and those moments where time itself appears to suspend. Alas, just like any story, travel also includes unexpected plot twists that can change the course of your adventure.

One of these less glamorous yet critically important topics is the concept of curtailment in the context of your travels. Amidst the thrill of planning and packing, the spare shoes and extra sunblock, what provisions have you made for the untold nuances of your tale?

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What Does ‘Curtailment’ Mean?

Imagine this: you're midway through your dream holiday, sipping a frosty beverage in an exotic destination when suddenly a family emergency calls for an immediate return. This unplanned trip interruption is referred to in the insurance industry as curtailment. Curtailment essentially means the sudden end to your trip, typically due to a critical event that demands your presence back home.

Although it’s not something we want to imagine, sometimes a situation will arise where you’ll need to head home prematurely from your holiday. Curtailment happens for reasons beyond your control, and as well as meaning you get less time than you imagined on your holiday, it’s also likely to cost you money.

Most insurance policies will cover you for curtailment; however, it’s something you should always check before taking out your cover. If you do have to cut short your trip due to an unfortunate reason, losing money because of this can add to your upset and frustration.

LEARN MORE:  Travel Insurance Glossary and Jargon Buster

Why Would Someone have to Cut their Holiday Short?

There are a multitude of reasons why an individual might find themselves in a situation where they have to unexpectedly shorten their holiday, a scenario that could unfold for either themselves or their fellow traveller. This unexpected turn of events could stem from various factors such as sudden work commitments, family emergencies, or unforeseen health issues that disrupt the planned holiday experience.

Some of the common reasons include:-

• A member of your party falling ill or getting injured
• A family member at home falling ill, getting injured, or passing away
• A business partner or associate at home falling ill, getting injured, or passing away
• A member of your party having their passport stolen or losing it
• A member of your party being summoned to court or jury duty
• A member of your party being called to duty as a part of their role in the armed services, emergency services, or governmental services
• A member of your party’s home becoming uninhabitable through burglary, flooding, fire, etc

The above are all valid reasons to cut a holiday short, and for those with curtailment travel insurance, you’ll likely be protected for them all. You should always make a point of checking your policy wording before travelling, and should you need to cut your trip short, you can speak to your provider to discuss your specific circumstances.

What Are the Impacts of Curtailment?

The consequences of curtailment are far-reaching, affecting more than just your immediate travel plans. Initially, there's the financial aspect—having to book last-minute flights home often comes with a hefty price tag, not to mention the potential loss of the remaining part of your hotel bookings, organised tours, and other prepaid expenses. It's a sudden and unexpected outlay that can significantly impact your budget.

On a personal level, curtailing your holiday can bring an emotional toll. The disappointment of cutting a dream trip short, coupled with the stress of arranging travel at short notice and the underlying reason prompting the return, can be draining. This emotional upheaval can linger, impacting both your well-being and your view of future travels.

Furthermore, the logistical challenges of organising an abrupt return home can be daunting. From navigating foreign healthcare systems, if the curtailment is due to illness or injury, to dealing with bureaucracy in the case of lost or stolen documents, each scenario presents its own set of hurdles.

Despite these challenges, understanding the potential impact of curtailment and preparing for such eventualities can ease the process considerably. This involves choosing the right travel insurance with adequate cover for curtailment and being aware of the support services your insurance provider offers, so you can focus on resolving the situation with as little additional stress as possible.

How can I Prepare Against Curtailment?

Preparing for the possibility of curtailment is akin to packing a first aid kit—you hope you won't have to use it, but it's reassuring to have it just in case. Being prepared can alleviate some of the stress and financial strain that accompanies the need to cut your holiday short. Here are some friendly and approachable tips to keep in mind:

• Choose a Comprehensive Travel Insurance Policy: When purchasing travel insurance, ensure it includes cover for curtailment for a wide range of reasons. Read the fine print and understand what is and isn't covered.
• Keep Essential Documents Handy: Make digital copies of all your important documents, such as your passport, insurance policy, and emergency contacts. Keeping these accessible on your phone or in a cloud storage service means you can act quickly if needed.
• Stay Informed: Keep abreast of any potential disruptions, be it natural disasters, political unrest, or health advisories, for your destination. Government travel advisories and news outlets are reliable sources of information.
• Have a Contingency Fund: Set aside a portion of your travel budget as a contingency fund. This can be used to cover unexpected expenses, like a last-minute flight home, should you need to curtail your trip.
• Know Your Rights and Options: Familiarise yourself with the cancellation policies of your accommodations, flights, and any pre-booked activities. Knowing how to swiftly cancel or reschedule these can save time and money.
• Emergency Contacts List: Create a list of emergency contacts, including your travel insurance provider, local embassy, and personal contacts back home. Having these numbers easily accessible can expedite getting the help you need.

By taking these steps, you can mitigate the impacts of curtailment should it occur, allowing you to focus on the situation at hand rather than the logistics of an unplanned return. Remember, the goal is to minimise disruptions and ensure you’re covered for various eventualities, providing peace of mind while you're off exploring the world.

What Isn’t Covered by Curtailment Travel Insurance?

Just as there are a range of reasons you may cut your holiday short that are covered by insurance, there are also some reasons that you might not be able to claim on your insurance. These include:

• The reason you cut your trip short being apparent whilst booking, for example, a pre-planned court appearance
• The illness or injury you’re experiencing is caused by being under the influence of alcohol or drugs
• The illness or injury you’re experiencing being apparent whilst booking and not declared on your policy
• You’re choosing to cut the trip short simply because you no longer want to continue it

These are all reasons you might cut your trip short. However, they’re much less likely to be covered by your travel insurance policy, so you’re unlikely to be able to claim your extra travel expenses back.

For those who are travelling and have a pre-existing medical condition, you’ll be pleased to know that you can get specialised cover that will take your illness into account. We compare quotes from the best insurance providers so that you can enjoy the best  medical travel insurance in the UK  for your needs. This protection will help not only with curtailment if your illness should mean you need to go home but medical expenses abroad and more.

Is Curtailment Different to Cancellation?

Many travellers find themselves pondering the differences between curtailing a holiday and outright cancelling it. In essence, the two are fundamentally different but equally important concepts within the realm of travel insurance.

Curtailment refers to the act of cutting your trip short after it has begun, necessitating an earlier return to your home country. This could be triggered by unforeseen circumstances such as illness, injury, or even the need to return for a family emergency. Curtailment coverage in your travel insurance helps to recoup some of the costs associated with the unused portion of your trip and the often expensive, last-minute arrangements needed to get you home.

Cancellation , on the other hand, occurs before your trip has started. If you need to cancel your holiday entirely due to unexpected events — such as a personal health issue, a family bereavement, or significant disruptions affecting your travels — cancellation cover can help you recover pre-paid expenses, like flights and accommodation, that are non-refundable.

Understanding the distinction between these two scenarios is crucial when selecting a travel insurance policy. It ensures that you're adequately protected against the unpredictability of life, allowing you to book your travels with confidence and peace of mind.

 LEARN MORE:  Do You Need Holiday Cancellation Cover?

What can you Claim for if you have to Curtail Your Holiday?

When the unforeseen happens, and you find yourself needing to cut your holiday short, understanding what you're entitled to claim can be a beacon of hope. Curtailment cover as part of your travel insurance policy serves as a safety net for recovering some of the costs associated with the unforeseen early end of your trip. Here are some of the costs you might be able to claim:

• Unused Accommodation: You can claim for the nights you won’t be spending in your holiday accommodation, as long as these are prepaid and non-refundable.
• Prepaid Excursions and Activities: If you had any activities or excursions booked and paid for, which you can no longer attend due to curtailing your holiday, these costs can typically be claimed back.
• Additional Travel Expenses: Should you need to book a last-minute flight or other travel arrangements to return home, these costs can also be included in your claim, subject to the terms of your policy.
• Unused, Non-Refundable Transport Costs: For parts of your planned travel (like internal flights, train tickets, or car hires) that you're unable to use due to the curtailment, you may be eligible for reimbursement.

Remember, specifically what you can claim will depend on the terms and conditions of your travel insurance policy. It’s crucial to read these carefully to understand the extent of your cover. Additionally, keeping all receipts and acquiring documentation to support the reason for your curtailment will greatly assist in the claims process. Being prepared and understanding your cover can make all the difference, providing that much-needed peace of mind during what can be a stressful time.

How Do I Claim for Curtailment?

If you find yourself in the unfortunate position of having to curtail your holiday, knowing the steps to make a claim can significantly ease the process. Here’s a friendly guide to help you through:

• Contact Your Insurance Provider Promptly: Ideally, you should inform your insurer as soon as possible. Many have dedicated 24/7 helplines for such situations. This not only helps in getting immediate advice but also ensures you're following the correct procedure as outlined by your policy.
• Gather All Necessary Documentation: This includes evidence of the reason for your curtailment (such as a medical certificate for illness), receipts for any additional expenses incurred, as well as documentation related to your unused accommodations and prepaid activities.
• Complete the Claims Form: Your insurer will provide you with a claims form, either electronically or in paper form. Fill this out with all the necessary details and double-check for accuracy to avoid any delays.
• Submit Your Claim: Along with the completed claims form, submit all the supporting documents to your insurance provider. This can often be done via email or post, depending on the insurer's requirements.
• Follow-Up: If you haven’t received an acknowledgment of your claim within a reasonable timeframe, don’t hesitate to follow up with your insurer. They can update you on the progress and inform you if additional information is needed.
• Be Patient: Once everything is submitted, the claims process can take some time as your insurer reviews the details and verifies the claim. They will then inform you of the outcome and, if successful, will advise on how the reimbursement will be made.

Remember, the key to a smooth claims process is to be prepared and have all your documentation ready. If in doubt, it's always a good idea to reach out to your insurer for guidance. They're there to help and can provide valuable assistance in ensuring your claim is processed efficiently.

Curtailment may not be on the forefront of your travel checklist, but its understanding and management belong there just as much as booking your flights or packing a first aid kit. By acknowledging the potential for changing plans and equipping yourself with the knowledge, resources, and strategies to address such an occurrence, you empower your travel experience with resilience and adaptability.

Curtailing your trip is not the end of the story; it's simply an unexpected plot twist that requires you to rewrite a chapter or two. Let's share wisdom and friendship with fellow travel lovers, building a community that cherishes not only the great adventures but also the resilience to carry on through the unknown.

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A pre-existing is any medical condition for which medical advice, diagnosis, care, or treatment was recommended or received before applying for a travel insurance policy. For some conditions, we'll need to know if they have ever been present, whilst for others if they occurred within a certain period.

A pre-existing condition is a diagnosed medical condition that existed before taking out a policy. We'll ask a series of questions about the medical history for you and any travellers on your quote. If you answer yes to any of these, you will need to tell us about the traveller's conditions. This could be a condition that a traveller has now or has had in the past. If you are not sure what conditions you need to declare, we have online support available to help you 24/7!

You can visit our help centre on Claims which may help. However, if you need to make a claim, full details of what you need to do to make a claim will be detailed in the Policy Wording provided to you by your insurance provider. 

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• The Difference Between Trip Cancellation and Trip Interruption Insurance
• Trip Insurance

While browsing different travel insurance policies, you might come across terms like “Trip Cancellation benefit” and “Trip Interruption benefit.” Do you know how a Trip Cancellation benefit works? How about a Trip Interruption benefit? Is there a difference? Yes!

This blog will break down the similarities and differences between these two benefits and explain why you should consider a travel insurance plan that includes both. 

What Is Travel Insurance?

Travel insurance, sometimes referred to as  trip cancellation insurance , is temporary insurance that can provide coverage during a domestic or international trip. The main benefit of travel insurance is the Trip Cancellation benefit, which provides coverage for trips canceled for a covered reason.

You might get sick before your booked trip to Aruba, or a hurricane could land at your beach destination. A travel insurance plan could provide coverage for the nonrefundable expenses you’ve paid for activities and transportation you’ll miss out on due to canceling a trip, like tickets for a scuba diving adventure or nonrefundable airline tickets.  

Many travel insurance plans provide additional benefits like Medical Evacuation, Baggage Damage or Loss, and Trip Interruption. Let’s break down the differences between a Trip Cancellation benefit and a Trip Interruption benefit.

Below we'll explain what trip cancellation means and what trip interruption means to help you understand the difference.

Trip Cancellation vs Trip Interruption

Below we'll explain the key differences between trip cancellation and trip interruption coverage.

Trip Cancellation

A Trip Cancellation benefit can provide coverage for nonrefundable, prepaid trip expenses after canceling a trip for a covered reason. A Trip Cancellation benefit applies specifically to a trip that is canceled before you depart. This may mean an emergency has taken place prior to your departure which leads you to cancel the trip, like a hurricane striking your destination or a sudden illness.

Review the following examples to see what may and may not be covered by your Trip Cancellation benefit.

What Is Typically Covered?

These are just a few scenarios frequently covered by a Trip Cancellation benefit. Review the policy documents for any plan you’re considering to see a full list of covered reasons for cancellation.

• You cancel your trip when you are diagnosed with a medical condition before leaving and your doctor advises you not to travel.  You shouldn’t have to worry about losing all your money on a trip that you can no longer take. A Trip Cancellation benefit could mean you are covered for prepaid, nonrefundable trip expenses if you cancel for a covered reason like a serious illness.
• An immediate family member passes away before you are set to travel, so you cancel your vacation.  The last thing you need to worry about after an unexpected death in the family is losing hundreds or even thousands of dollars on a prepaid trip. That’s why most travel insurance plans include death of a loved one (parent, grandparent, sibling, child, etc.) as a covered reason for trip cancellation. Be sure to review your policy documents to see who qualifies as an immediate family member.
• Your booked accommodations are destroyed by a hurricane named after your coverage is in effect, and you cancel your trip.  You checked the  weather for your destination  when you booked your trip, and it all looked good to go then. Now just a week before you’re set to depart, a new hurricane is named and makes landfall at your destination, destroying your hotel and the city around it. Your Trip Cancellation benefit can come into play and help cover prepaid expenses for a trip you can no longer take.

What Isn't Typically Covered?

Below are several scenarios that are frequently excluded from cancellation coverage . It’s important to understand that your reason for canceling a trip must be listed as a covered reason in your policy documents. 

Learn more about  traveling during the hurricane season and how to keep yourself and your travel companions safe.

• You cancel your trip and then purchase a travel insurance policy.  Add “purchase travel insurance” to your  trip planning to-do list . You won’t be covered for lost expenses if you purchase a policy after you cancel your trip.
• You decide to cancel your trip because of cold feet.  It’s understandable to get nervous about travel, especially if you don’t do it frequently. However, your Trip Cancellation benefit can only provide coverage for covered reasons listed in your policy documents. Make sure to read those covered reasons carefully before purchasing.

What Is a Cancel for Any Reason Benefit? Some travel insurance plans provide an option to upgrade your benefits. One potential upgrade is the Cancel for Any Reason (CFAR) benefit. But what does this mean? Your Trip Cancellation benefit will already cover you if you cancel your trip due to a covered reason listed in your policy documents. But what if you need to cancel for other reasons? A CFAR benefit will provide reimbursement (sometimes up to 75%) of the unused, nonrefundable, prepaid payments or deposits you made for your trip. And this is if you cancel your trip for any reason! Just make sure you read your plan’s policy documents and ensure you are following the correct procedures. For example, you may be required to cancel within a certain number of days prior to your trip to be eligible for CFAR coverage. The   Atlas Journey travel insurance   plan CFAR upgrade will reimburse you up to 75% for a cancelled trip, but you must cancel at least 48 hours before your departure. See your plan’s policy documents for more information about the CFAR optional upgrade.

Trip Interruption

While a Trip Cancellation benefit can cover the cost of a trip canceled before it has begun, a Trip Interruption benefit may be used once the trip has already started. If you end your trip early for a covered reason, the Trip Interruption benefit can cover your unused and nonrefundable trip expenses.

Here are a few scenarios that are typically covered by a Trip Interruption benefit. You can find a full list of covered reasons for interruption in the policy documents for the plan you’re considering.

• You end your trip early when you become ill or injured and your doctor advises you to go home.  Maybe you get a serious case of food poisoning or  break your ankle while hiking on vacation , and your doctor advises you to end your trip and return home. Your Trip Interruption benefit can provide coverage for your prepaid, nonrefundable expenses for the rest of your trip that you are unable to use.
• Your host has a medical emergency during your trip, so you end your vacation early.  You may decide to stay with a family member, friend, or host during your trip. If they experience a medical emergency resulting in their hospitalization or death and you have to end your trip early, you could be reimbursed for your unused expenses.
• There is a mandatory evacuation of your destination because of a natural disaster while you are on vacation, and you must cancel the rest of your trip.  In some extreme cases, your travel destination may require an evacuation because of a natural disaster like a hurricane. Your unused trip expenses may be covered when you are forced to end your trip early.

There are many scenarios that are typically excluded from interruption coverage. A couple examples are listed below. Note that your reason for ending a trip early   must   be listed as a covered reason for interruption in your policy documents.  

• You end your trip early because of homesickness.   During your trip abroad you experience homesickness and decide to head home early. You likely will not be covered for unused trip expenses, as homesickness is not typically a covered reason for interruption.
• You aren’t 100% satisfied with your accommodations when you arrive, so you book reservations for somewhere else.   You thought you got a good deal on your hotel, but it doesn’t turn out like you thought. You decide to cancel and book a different hotel. This is usually   not   a covered reason for trip interruption. 

PRO TIP: Remember that every travel insurance plan has its own benefits, limits, conditions, and exclusions. Don’t assume all plans are the same. Review the policy documents for any plan you’re considering and make sure you understand what is and isn’t covered.

Won’t Travel Companies Give Me a Refund?

They might, or they might not. Every hotel, airline, tour company, and amusement park has a different cancellation policy.

Even if your travel provider offers some cancellation flexibility, there’s a chance you may not receive a refund if you cancel too late. For example, canceling a flight the night before could mean you don’t get a refund for your ticket. U.S. airlines are not required to issue refunds to travelers who cancel their trip.

Also, many amusement parks and tours exclusively offer nonrefundable tickets for their experiences.

Third-Party Vendors

You may purchase your flight tickets, make hotel reservations, or book a rental car through a third-party travel vendor like Expedia, Kayak, or Hotwire. These vendors can make it easier to book and could feature cheaper prices.

However, these third-party vendors may only allow refunded cancellations within 24 hours of purchase or before a certain deadline. Missing deadlines or purchasing nonrefundable tickets could mean you won’t receive a refund for your trip purchase without a travel insurance plan. 

How Can I Get Coverage?

You can get coverage for trip cancellation and trip interruption with a travel insurance plan like  Atlas Journey . Atlas Journey is a comprehensive and customizable travel insurance plan offering three different coverage options: Elevate, Explore, and Escape.

Trip Cancellation and Trip Interruption Benefits

Atlas Journey features a Trip Cancellation benefit that covers up to 100% of trip costs. Atlas Journey Elevate can cover trips of up to $100,000, Atlas Journey Explore can cover trips of up to $50,000, and Atlas Journey Escape can cover trips of up to $10,000.

The Trip Interruption benefit covers up to 150% of trip costs for Elevate and Explore and up to 125% of trip costs with Escape.

Atlas Journey provides additional benefits including:

• Travel Delay
• Missed Connection
• Airline Reissue or Cancellation Fees (only available on the Elevate and Explore plans)
• Reinstate Frequent Traveler Rewards
• Emergency Accident & Sickness Medical Expense
• Dental Expense
• Medical Evacuation & Repatriation of Remains
• Baggage Damage or Loss
• Accidental Death & Dismemberment

Atlas Journey also offers a waiver of the pre-existing condition exclusion if you purchase your Atlas Journey Elevate or Explore plan within 21 days of your initial trip payment date or your Atlas Journey Escape plan within 14 days of your initial trip payment date. Otherwise, a 90-day lookback period will apply to pre-existing conditions. Click the “Exclusions” tab on our Trip Cancellation page to see what qualifies as a pre-existing condition.

View the Atlas Journey policy documents for your state of residency and plan for more information on benefits, conditions, and exclusions.

Additional Coverage Upgrades in Atlas Journey

You can add one or more of the following upgrades to your Atlas Journey trip cancellation plan to customize and enhance your coverage. Note that upgrade availability varies by plan level and may vary by state of residency.

• Cancel for Any Reason – Reimbursement for up to 50% or 75% of your nonrefundable, prepaid expenses if you cancel for a noncovered reason
• Interrupt for Any Reason – Adds interruption coverage for a non-covered reason
• Adventure Sports – Extends coverage to include sports such as safari, bungee jumping, hang gliding, & more
• Rental Car Damage and Theft – Adds collision damage waiver and coverage for theft of rental vehicle
• Medical Evacuation – Doubles medical evacuation coverage and offers evacuation to hospital of your choice
• Pet Care – Adds cancellation coverage for the death or critical illness of your dog or cat and vet care if they are traveling with you

Travel Assistance Services

You may need additional assistance before departing for your trip or while traveling. Atlas Journey plans include travel assistance services  to assist you with referrals, language interpretation, lost or stolen luggage, concierge services, and more.   

"Of the top eight travel insurance companies in our review, WorldTrips’ underwriting company is the only one to have an A++ (Superior) financial strength rating from AM Best."

“WorldTrips is the best travel insurance company of 2024, based on our analysis of cost and coverage options.” 

Why WorldTrips

Who is insuring you is just as important as the insurance plan you choose. For the past 25 years, WorldTrips has provided travel insurance and compassionate service to help our customers travel fearlessly. Our knowledgeable customer representatives are available 24/7 to respond to your travel emergencies, no matter the situation, time zone, or spoken language.

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WorldTrips' Atlas Journey, Atlas Cruiser, and Atlas On-The-Go trip protection insurance products are underwritten by Tokio Marine HCC's U.S. Specialty Insurance Company (USSIC). USSIC is a Texas-domiciled insurance company operating on an admitted basis throughout the United States. Coverage is available to U.S. residents of the U.S. states and District of Columbia only. This plan provides insurance coverage that only applies during the covered trip. You may have coverage from other sources that provides you with similar benefits but may be subject to different restrictions depending upon your other coverages. You may wish to compare the terms of this policy with your existing life, health, home, and automobile insurance policies. Coverage may not be available in all states.

In the State of California, operating as WorldTrips Insurance Services. California Non-Resident Producer License Number: 0G39705

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Things to know about Trip Cancellation and Trip Disruption

• Date: July 17, 2020

It’s been awhile since the Phase 2 safe re-opening and the General Election in Singapore. Recently, more people are allowed to return to workplace and there are further easing of the current travel restrictions.

If you are looking forward to travel in the new normal, travel insurance is a no-brainer. In addition, be fully prepared for the unexpected with understanding of trip cancellation, trip postponement and trip disruption benefits. Read on!

Things to know about trip cancellation

Planning to take off tomorrow but have to cancel due to certain medical or non-medical events? Trip cancellation comes into place in such a situation, reimbursing all or some costs, depending on one’s coverage.

“I’ve changed my mind about travelling because I don’t feel safe.”

In the new normal, this may come up frequently. Would trip cancellation protect you if you changed your mind about travelling? Well, different insurers have their own set of terms and conditions, and this is especially so with regards to cancellation claims due to COVID-19.

Read the policy wording before you purchase your travel insurance to be fully aware of what’s covered and what’s not. Most importantly, trip cancellation cover only applies for those who cancel before they depart.

Things to know about trip postponement

“I still want to travel, but I can’t do so right now.”

The alternative to cancelling your trip is to postpone it. However, doing so may come with certain expenses. Some insurers provide trip postponement benefit for specific events that allows the insured traveller to defer their trip until they are able to do so without incurring extra costs.

Like the trip cancellation benefit, trip postponement benefit only applies for those who postpone before they depart.

#TiqOurWord Postponing your trip? You can make changes to your Tiq Travel Insurance policy (via your TiqConnect account) if the duration and destination remains the same. Otherwise, please contact Customer Care for assistance. Learn more about our travel protection here .

Things to know about trip disruption

Imagine encountering a level 10 typhoon upon reaching your destination. You’re unable to proceed with your tour. That’s where trip disruption comes in handy.

Also known as trip interruption or trip curtailment, trip disruption covers unexpected events during your trip that ‘force’ you to shorten your trip and return home early.

In the new normal, there are more uncertainties than ever. Aside from intermittent lockdowns that have become a reality, civil unrests and even bad weather could disrupt your trip.

Trip disruption coverage kicks in only after you have left home and if an insured event happens during your trip . As usual, different travel insurance have their own sets of terms, so read the policy wording.

Ready to travel in the new normal?

Travel restrictions are still in place in Singapore, but it’s not impossible to travel. If you have made up your mind to travel, stay aware of the latest measures such as the serving of 14-day Stay Home Notice and COVID-19 testing for all incoming travellers except those who were in countries or places that currently has established special travel arrangements with Singapore.

Before you go, it’s best that you know about travel insurance in the new normal and here’re some useful tips for safe air travel from fellow travellers. Be safe wherever you go!

Information is accurate as at 8 October 2020. This policy is underwritten by Etiqa Insurance Pte. Ltd. (Company Reg. No. 201331905K). Protected up to specified limits by SDIC.

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A digital insurance channel that embraces changes to provide simple and convenient protection, Tiq’s mission is to make insurance transparent and accessible, inspiring you today to be prepared for life’s surprises and inevitabilities, while empowering you to “Live Unlimited” and take control of your tomorrow.

With a shared vision to change the paradigm of insurance and reshape customer experience, Etiqa created the strong foundation for Tiq. Because life never stops changing, Etiqa never stops progressing. A licensed life and general insurance company registered in the Republic of Singapore and regulated by the Monetary Authority of Singapore, Etiqa is governed by the Insurance Act and has been providing insurance solutions since 1961. It is 69% owned by Maybank, Southeast Asia’s fourth largest banking group, with more than 22 million customers in 20 countries; and 31% owned by Ageas, an international insurance group with 33 million customers across 16 countries.

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Trip cancellation/Trip curtailement

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Varun and Shivani are about to go vacationing with their two kids. They plan to go skiing and accordingly make bookings in a resort which includes skiing package. Three days prior to the flight, the kids fall sick following which they cancel their trip.

With trip cancellation coverage, Varun and Shivani do not need to fret about losing the money they spent on booking flights and accommodation (with the skiing package).

To cater for travel emergencies arising from flight delays, medical crises, loss of baggage and passports, trip cancellation coverage Is standard across travel plans.

Trip cancellation coverage

The trip cancellation coverage is essentially a pre-departure feature. In this, the travel insurance provider reimburses the cost of the non-refundable and pre-paid expenses like unused flight tickets and hotel bookings. Note that the coverage for trip cancellation can be claimed only for reasons that are mentioned in the policy document.

For a travel insurance plan to cover cancellation of a trip for any reason whatsoever, there are specific plans under the label “cancel for any reason travel insurance”. Depending upon the terms and conditions of the policy, the cover can also reimburse the single supplement fee (the termination of the trip of the insured co-traveller only).

Commonly included reasons

Before signing the papers, you must read your travel insurance policy document thoroughly to understand all the inclusions and exclusions well. Common trip cancellation scenarios covered include personal injury, illness, bad weather, natural calamity, terrorist attack at the destination etc.

Several travel insurance policies also cover other personal crises, like a death in the family or other familial commitments (has to be mentioned in the plan), schedule mismatch at the workplace, new joining, assaults on you or your travelling companion.

With trip cancellation coverage, you will be able to recover substantial pre-paid out-of-pocket expenses, if you happen to terminate your trip.

Explore more Travel Insurance Features .

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Trip cancellation and curtailment coverage in travel insurance

Travelling is full of surprises, and not all of them are pleasant. That's where travel insurance comes in handy. It's like a safety blanket for your trips, especially when things are unplanned. Among the various aspects of travel insurance, one often misunderstood area is trip cancellation and curtailment coverage. Misconceptions around this coverage lead to miscommunication when travellers want to make a claim, which can be naturally frustrating. 

In this blog, we will talk about this coverage,  breaking it down so you can understand it better and feel more confident about your travel insurance choices.

Please note any claim eligibility is subject to the terms and conditions of the travel insurance product you are purchasing. The reasons stated in this article are indicative and not binding. It is highly recommended to read our terms and conditions to see the exclusions, limits and conditions of our products. You can see all of the steps regarding making claims in the Allianz Travel Terms & Conditions .

Demystifying trip cancellation and curtailment coverage

Let's unravel the concept of Trip Cancellation and Curtailment Coverage. Think of it as a protective shield for your travel plans. This coverage steps in when you must cancel your trip before it begins or cut it short due to specific circumstances. These unexpected events can range from medical emergencies that aren’t the result of a pre-existing condition to any other reason covered in the policy, throwing a wrench into your well-laid travel plans.

Imagine you've been looking forward to that dream vacation or a crucial business trip for months. Then, you or a family member falls seriously ill out of nowhere. In these challenging moments, Trip Cancellation and Curtailment Coverage act as a financial safety net, helping you recover non-refundable expenses and navigate the complexities of rescheduling or cancelling travel arrangements.

Covered reasons for trip cancellation and curtailment claims

Cancellation.

If you find yourself needing to cancel your journey before it begins due to the following events, you can rely on this coverage for reimbursement of non-refundable trip costs:

• Death, serious injury, or serious illness:  This includes situations where you, someone you intended to stay with, a travelling companion, or a close relative or business associate experience the unfortunate events of death, serious injury, or serious illness.  This does not include pre-existing conditions. 
• Police involvement after home incidents:  If the police require you or a travelling companion following a burglary, damage caused by a serious fire, storm, flood, explosion, subsidence, vandalism, fallen trees, or impact by aircraft or vehicle at your home or their home or usual place of business in your home country, you can cancel your journey and seek coverage.

Curtailment 

Sometimes, unforeseen events occur after your journey has begun, necessitating an early return home. Allianz's coverage extends to the following circumstances:

• Events mentioned in the cancellation : If any events mentioned under the cancellation section mentioned above happen during your trip, compelling you to conclude it prematurely, you can count on this coverage for support.
• Injury or illness requiring hospitalisation : If you or a travelling companion becomes injured or ill and must remain in the hospital for the remainder of your journey, this coverage ensures you're covered for the incurred costs. Please note that this excludes preexisting conditions. This does not include pre-existing conditions . 

Exploring limitations: When trip cancellation and curtailment coverage may not apply

While Trip Cancellation and Curtailment Coverage is a helpful safety net, there are times when it won't come to your rescue. Let's break down these situations:

Extra costs: 

Sometimes, you might have to chip in a bit. In the event of a trip cancellation or curtailment claim, there could be an excess amount you need to cover yourself, as mentioned in your summary of cover.

Health matters:

If you have health issues, or your policy explicitly excludes certain medical conditions, it could affect your trip cancellation or curtailment claim eligibility.

Unusual payment methods: 

If you've paid for your travel expenses using frequent flyer points, loyalty card points, or vouchers, the coverage might not pay more than those expenses would typically cost.

Specific situations: 

Trip Cancellation and Curtailment Coverage may not kick in for:

         Passport or visa problems : If you don't have the right passport or visa for your trip.

         Carrier hiccups : If the airline or transport provider decides not to let you board for any reason.

         Legal limitations : When the laws of a country or the folks in charge of enforcing those laws put the brakes on your travel.

         Provider troubles : If the company running your transport or accommodation goes bankrupt.

         Their fault, not yours : Anything that's the fault of your travel provider, conference organiser, or anyone acting on your behalf.

         Car troubles: If your vehicle gets stolen or breaks down.

         Change of heart: When you decide you don't want to travel or aren't having a good time, it's not for a serious reason.

         Civil unrest: Events like riots, strikes, or civil disturbances.

         Air travel exclusion : If you're on a private aircraft, your coverage may not apply.

         Intentional actions : If you intentionally mess up your travel plans, like doing something reckless or illegal (unless it was to save someone's life).

         Pets and animals : The sad passing of a pet or animal won't be covered.

         Transport or vehicle withdrawal : If your booked transport, like a plane, train, or boat, gets taken out of service due to a government or authority order in any country.

Late notice:

If you don't tell your travel provider, their agents, or anyone helping you out as soon as you know you have to cancel, you might end up with extra charges that the coverage won't handle.

Money and jobs:

Financial troubles or unemployment typically won't be covered unless you find out about losing your job due to redundancy after you bought your policy or travel tickets (whichever came later).

Trip cancellation/curtailment coverage options with Allianz Travel

When securing comprehensive travel insurance coverage that safeguards your travel plans, choosing an insurer you can trust that comprehends the nuances of your travel needs is essential. Allianz Travel is a reliable choice if you're looking for travel insurance that includes the invaluable Trip Cancellation/Curtailment Benefit.

Our travel insurance packages, which include the trip cancellation/curtailment benefit, are the following: 

Annual multi-trip insurance 

Allianz Travel created this travel insurance product for frequent flyers as it is a convenient and more cost-effective way to travel any time of the year. Our annual multi-trip product covers all trips below 90 days within a year. The coverage includes the following: 

• Emergency Medical Expenses 
• Dental Expenses 
• Loss of Travel Documents 
• Hospital funds 
• Personal accident, 
• Missed Departure
• Delayed Departure
• Flight Overbooking

Single-trip insurance 

Our single-trip insurance packages are tailored for individuals who take one annual trip any time of the year. These packages come with a range of benefits and offer extensive worldwide coverage. The coverage includes:

• Personal accident 

About Allianz Travel

• Schengen Product
• Travel Global
• Annual Multi-trip
• TravelSmart
• Travel Senior
• Business Travel
• Policy Document
• Travel Tips
• Insurance Glossary
• Privacy Policy
• Health Declaration and Exclusions
• GET A QUOTE

Understanding Trip Cancellation and Curtailment with Allianz Travel

Understanding trip cancellation and curtailment, trip cancellation.

Trip cancellation refers to the unfortunate situation where you have to cancel your entire trip before it even begins. The reasons for cancellation can vary widely, from personal emergencies to unforeseen events affecting your travel companions. 

Here are the scenarios in which Allianz Travel provides coverage for trip cancellation:

• Death, Serious Injury, or Serious Illness: If you, someone you were going to stay with, a traveling companion, or a close relative or business associate experiences a serious medical crisis, Allianz Travel has you covered.
• Home Emergencies: You or a traveling companion might be required by the police due to a burglary, or your home may suffer damage from a serious fire, storm, flood, explosion, subsidence, vandalism, fallen trees, or even an impact by an aircraft or vehicle. In such cases, your trip cancellation will be protected.

Trip Curtailment

•  Trip curtailment, on the other hand, involves ending your trip prematurely after it has already begun. If you need to cut your trip short due to unexpected health-related issues, law enforcement matters, or emergency family situations, you may encounter trip curtailment. Please refer to our Ts&Cs for more information or reach out to us for assistance.
• It's essential to understand that Allianz coverage has its limits. As a policy holder, it's important to know that certain situations will NOTbe covered, including but not limited to:
•         1. Business trips or meeting cancellations
•         2. Canceling your trip due to personal reasons unrelated to an emergency
•         3. Non-emergency doctor appointments
• Please refer to our Ts & Cs for a complete understanding of what is and isn't covered by our policy. If you have any questions or concerns, feel free to r each out to us for assistance.

Common Reasons for Trip Cancellation and Curtailment

• It's important to note that not all reasons for trip cancellation or curtailment are covered by Allianz Travel's policy. Many claims are denied because they do not fall within the scenarios covered by the policy.

Business Meetings and Family Issues

• Customers often assume that a business meeting or family issue will automatically qualify for trip cancellation or curtailment coverage. However, it's crucial to understand that coverage is provided only for specific types of emergencies, such as serious injury or illness. If your trip plans change due to a business meeting or family issue that does not meet these criteria, you may not be eligible for compensation.

Flight Cancellation vs. Trip Cancellation

• Another common misunderstanding is the difference between flight cancellation and trip cancellation. While flight cancellation is not covered by Alliaz, trip cancellation is a covered benefit. If your trip is canceled, you may be eligible for coverage.
• If you have any questions or concerns, please don't hesitate to contact us . Our team is here to help.
• Please note that our Ts & Cs apply. For a complete understanding of the definitions and coverage provided by Alliaz, please refer to our policy documentation .

Pre-Existing Conditions (PEC)

• Allianz Travel's policy does not cover trip cancellation if it is due to a health issue related to a pre-existing condition (PEC). Some customers have mistakenly believed that PEC is not covered only in the case of medical claims, not trip cancellations. It's crucial to understand that any trip cancellation resulting from a PEC may not be eligible for coverage.

In conclusion

• Planning a trip is an exciting adventure, but life's unpredictability means you should always be prepared for the unexpected. With Allianz Travel's trip cancellation and curtailment coverage, you can travel with peace of mind, knowing that you have financial protection in case of emergencies that fall within the policy's criteria.
• Remember to carefully review the policy details and understand the scenarios covered to make informed decisions about your travel plans. By doing so, you can ensure that your journey, whether for leisure or business, is protected against unforeseen circumstances, allowing you to focus on the joy of exploring new destinations and creating lasting memories. Travel smart with Allianz Travel, where your adventures are safeguarded every step of the way.

What is trip cancellation and interruption insurance?

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Whether you get travel insurance through a policy you purchase or from a travel credit card , you’ve probably noticed that most plans include a trip cancellation and interruption insurance benefit. This perk is one of the most common travel insurance benefits , and it’s also one of the most valuable. After all, travelers who have this protection can often get reimbursed when their trip is canceled or interrupted for certain reasons beyond their control, such as an unexpected illness, an injury or a flight cancellation.

Before you invest in trip cancellation coverage or trip interruption insurance, however, you should know how these coverages actually work and when they apply. So, what is trip interruption insurance, and how does trip cancellation protection work? Let’s dive into these insurance products to find out what they’re all about.

While trip cancellation coverage and trip interruption coverage are often grouped together, these two coverages actually apply in different situations. For instance, trip cancellation coverage reimburses travelers when their trip is canceled altogether for eligible reasons, whereas trip interruption coverage provides reimbursement for some prepaid travel expenses when a trip is interrupted after it has already started.

Note that, with both types of insurance protection, reimbursement only applies in scenarios that are beyond a traveler’s control. This means that you can’t just cancel your trip for any reason and get your money back, nor can you decide to leave your trip early and successfully file for reimbursement.

Also, note that you may be able to purchase trip cancellation and interruption insurance separately or it may be a part of the included benefits within a travel insurance plan . You may also be able to get this coverage automatically from certain travel credit cards .

What does trip cancellation and interruption insurance cover?

Trip cancellation insurance is meant to reimburse you for prepaid travel expenses you already booked when your trip is canceled for reasons beyond your control. Some common scenarios where trip cancellation coverage can apply includes (but is not limited to):

• Injury, illness or death of a traveler or close family member
• Financial default of an airline or travel provider
• Inclement weather that leads to trip cancellation
• Work issues that cause you to miss a trip
• Being called into active duty military service
• Acts of terrorism in the travel destination

Meanwhile, trip interruption insurance can apply when a trip is forced to an early end for an eligible reason. Common situations covered by a trip interruption benefit include the following:

• Injury, illness or death of a traveler or close family member during a trip
• Diagnosis of COVID-19 or required quarantine during a trip
• Destination made uninhabitable due to severe weather
• Terrorist activity taking place in your travel destination
• Lost passport or travel documents during a trip
• Travel strikes that impact your trip

What does trip cancellation and interruption insurance not cover?

While the list of covered scenarios for trip cancellation or interruption coverage above is not exhaustive, you should know that not everything is covered by either type of protection. Common scenarios that are typically not covered by travel insurance include:

• Travel interruptions caused by acts of war
• Travel interruptions caused by civil unrest
• Government-issued travel bulletins or warnings
• Natural disasters
• Nuclear reaction, radiation or radioactive contamination
• Terrorist events

That said, it’s important to note that it’s possible to purchase trip cancellation and interruption coverage that applies in a broader range of scenarios. For example, you can purchase “cancel for any reason” (CFAR) insurance that lets you cancel your trip for any reason at all and get part of your prepaid travel expenses back. Likewise, an “interrupt for any reason” (IFAR) insurance policy lets you end your trip for any reason and get part of your prepaid travel expenses back.

Both types of optional coverage will make your travel insurance policy cost more, but CFAR and IFAR insurance can provide peace of mind if you’re unsure your trip will happen and you want a way to get at least some of your prepaid costs toward hotels and airfare back if you decide to stay home.

Best credit cards for trip cancellation/interruption insurance

Several travel credit cards with travel insurance offer trip cancellation and interruption insurance automatically for cardholders, including the following:

Chase Sapphire Preferred Card

The Chase Sapphire Preferred® Card comes with trip cancellation and interruption coverage of up to $10,000 per person and up to $20,000 per trip. This insurance covers pre-paid, non-refundable travel expenses (like passenger fares, hotels and tours) in the event a covered situation (such as sickness or severe weather) occurs.

Other travel insurance perks include primary rental car coverage, baggage delay insurance, trip delay reimbursement and travel and emergency assistance services. A $95 annual fee applies for this card.

Chase Sapphire Reserve

The Chase Sapphire Reserve® also comes with trip cancellation and interruption coverage of up to $10,000 per person and up to $20,000 per trip. Like the Chase Sapphire Preferred, this insurance applies to covered situations and will reimburse you for eligible, pre-paid and non-refundable travel expenses.

Other notable travel benefits include primary rental car coverage, lost luggage reimbursement, trip delay reimbursement and emergency evacuation and transportation coverage. A $550 annual fee applies for this card.

The Platinum Card from American Express

The Platinum Card® from American Express comes with trip cancellation and interruption insurance of up to $10,000 per trip and up to $20,000 per eligible card every 12 months. Insurance applies to covered reasons (additional terms and conditions apply).

Other travel protections for cardholders include car rental loss and damage insurance, emergency assistance services and trip delay insurance. A $695 annual fee applies for this card.

The World of Hyatt Credit Card

The World of Hyatt Credit Card *, which is issued by Chase, comes with several travel protections, including trip cancellation and interruption coverage (for eligible events and expenses) of up to $5,000 per person and up to $10,000 per trip. Cardholders will also get baggage delay insurance, lost luggage reimbursement, secondary auto rental coverage and Visa Signature concierge services. A $95 annual fee applies for this card.

The bottom line

Trip cancellation and interruption insurance can help you get some of your money back when your trip is canceled or interrupted for reasons beyond your control. However, you’ll want to read over the policies you’re considering so you know what is and isn’t covered, as well as how much coverage you’ll get per traveler and per trip. Also, note that many top travel credit cards offer this benefit for free, but you’ll have to pay for your trip with your eligible credit card for travel insurance benefits to apply.

At the end of the day, having coverage for trip cancellations and interruptions can be worth it regardless of whether you buy a travel insurance plan or book a trip with your favorite travel credit card. While travel can be stressful and expensive, having travel insurance can help .

*The information about The World of Hyatt Credit Card has been collected independently by Bankrate.com. The card details have not been reviewed or approved by the card issuer.

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When and how to cancel your car insurance policy

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Trip Cancellation Travel Insurance

with our partner, Faye

Sarah Horvath is a finance writer and researcher based in New York City. She specializes in writing about home warranties, insurance and home financial protection.

Roxanne Downer is an Oklahoma-based writer and editor with over 15 years of experience in the news, finance and lifestyle fields. When she’s not creating content, Roxanne enjoys spending time with her playful pug.

Here’s a breakdown of how we reviewed and rated the best travel insurance companies

Trip cancellation insurance can reimburse prepaid, non-refundable travel expenses if you must cancel your trip due to an unforeseen event covered under your policy. If you are planning your next globetrotting adventure, consider protecting yourself with trip cancellation insurance.

Policies with trip cancellation insurance are available from major travel insurance providers to protect you financially in the event of unexpected plan changes. Read on to learn more about protecting your travel plans from unforeseen cancellations.

What Is Trip Cancellation Travel Insurance?

Trip cancellation insurance provides prepaid, nonrefundable reimbursement for trip expenses if you must cancel a trip due to an unforeseen circumstance such as illness, injury, or the death of the traveler or a loved one.

Prepaid and non-refundable trip expenses covered under trip cancellation insurance include airline tickets, hotel reservations, cruise bookings, prepaid tours and more. As long as the reason for cancellation is covered under your policy, you can submit a claim for reimbursement up to a certain amount. Some providers offer reimbursement of over 100% of your covered trip expenses, but the amount will depend on your plan choice.

What Does Trip Cancellation Insurance Cover?

Trip cancellation insurance reimburses you for nonrefundable travel expenses if an unforeseen event forces you to cancel your trip. 

For example, imagine you’re planning an international vacation and have spent $5,000 on nonrefundable expenses, such as airfare and accommodations. Then, after you make your last trip payment, your appendix bursts, and you can’t go on your trip. 

In this example, your hospitalization would qualify you for a refund of up to $5,000 through your trip cancellation insurance. If you did not buy travel insurance, you would lose all your nonrefundable expenses if you could not attend your vacation, regardless of the reason.

Typically, you may use your trip cancellation insurance for the following reasons:

• An unexpected legal obligation, such as jury duty or a subpoena, that prevents you from traveling
• Death of a traveling companion or one of your immediate family members
• Diagnosis of a serious, unforeseen medical condition or injury that prevents you from traveling
• Unforeseen weather or natural disasters that cause damage at home or make the country you’re visiting unsafe or uninhabitable

According to a recent survey from AAA Travel , 88% of U.S. residents who purchased travel insurance say travel cancellation insurance is the most important part of their policy. Some insurance providers offer trip cancellation insurance as a stand-alone policy, which is an excellent option for travelers who need protection but are on a strict budget.

However, trip cancellation protection is usually sold as a package plan that includes other travel insurance coverages. Typically, comprehensive travel insurance covers the following:

• Emergency medical: Your standard medical insurance may not apply when you travel abroad. Emergency medical coverage helps you cover the cost of medical expenses that you incur while abroad. Depending on the insurance provider, dental care and treatments may or may not be included in this coverage. Remember that if you have pre-existing conditions , your travel insurance provider may exclude these from your medical coverage.
• Emergency medical evacuation: Emergency medical evacuation services cover the cost of transporting you to a medical facility if you need treatment for which there is no local access to appropriate care. This coverage will also cover the cost of helping you get home following a major injury or illness.
• Trip interruption: Trip interruption insurance compensates you for any portion of your nonrefundable travel expenses you don’t get to enjoy due to unforeseen circumstances. For example, if you’re seriously injured and need a medical evacuation abroad, trip interruption insurance will reimburse you for nonrefundable expenses you didn’t use. Some policies include trip interruption coverage limits above the value of your vacation. This extension covers sudden-evacuation transportation costs, which are significantly more expensive than standard airfare. You can also use your trip interruption insurance if you’re ordered to evacuate an international location .

Do not assume that you have any of the above coverages unless they are explicitly defined in your trip cancellation policy. If you aren’t sure what is and isn’t included in a policy, speak with a representative before you sign on for coverage.

What Is Not Covered by Trip Cancellation Insurance?

Trip cancellation insurance does not cover everything. For example, deciding not to go on vacation does not mean you’re entitled to reimbursement. If there’s a chance you won’t take your trip due to a foreseeable event, you may consider purchasing Cancel For Any Reason coverage (CFAR). As the name suggests, CFAR policies allow you to claim a reimbursement no matter why you need to cancel.

Depending on the insurance company, CFAR coverage might be a stand-alone policy or may be sold as an add-on to your travel insurance benefits for an additional cost. While CFAR insurance provides you with more flexibility, it’ll also make your insurance significantly more expensive. Expect to pay between 40% and 60% more for your policy if you want to include CFAR coverage.

Without CFAR coverage, your insurance will not apply unless extenuating circumstances force you to cancel your trip. Trip cancellation policies usually exclude certain types of injuries and unique situations from coverage.

The following are some exclusions you’re likely to see in your travel insurance policy:

• Acts of war and terrorism
• Any elective medical procedure
• Injuries and conditions resulting from intentional harm to the insured, participation in extreme sports, mental health disorders, alcohol or illicit substances
• Routine pregnancy needs (such as doctor’s appointments or fertility treatments)
• Storms and natural disasters already named before your departure date

Cancel For Any Reason Travel Insurance

Cancel for any reason (CFAR) travel insurance allows you to cancel your trip for virtually any reason. As mentioned, a standard policy typically excludes this coverage, so you will need to purchase it as an add-on. If you want CFAR insurance, expect your overall plan costs to increase.

While CFAR coverage and trip cancellation insurance have similarities — namely, covering you if you need to cancel your trip — there is one main difference between the two. Trip cancellation insurance does not cover cancellations for any reason. If you cancel your vacation for a reason not covered by your policy, you cannot claim reimbursement for prepaid travel-related expenses. 

Because CFAR travel insurance allows you to cancel your trip for reasons outside a traditional policy, it’s ideal for travelers seeking added peace of mind or who foresee events that could lead to trip cancellation otherwise. If you’re solely worried about circumstances outside of your control halting your vacation, such as an extreme weather event, then standard trip cancellation insurance is likely enough.

How Much Does Trip Cancellation Insurance Cost?

Trip cancellation protection costs will vary depending on the specifics of your upcoming travel plans . Some factors insurance companies will consider when pricing your policy might include the following:

• Destination: The quality and cost of public services, such as health care and police services, vary dramatically worldwide. If you’re heading to a country with less extensive infrastructure, you’ll pay more for travel insurance.
• The value of your vacation: If you’re planning an expensive trip, your policy will include higher coverage limits and eligibility, increasing the price.
• Time spent abroad: The more time you spend away from home, the greater the chance you’ll need to use your insurance. Traveling for longer time frames makes insurance more expensive.
• Your age: Older travelers are more likely to be injured than younger travelers, which increases coverage costs.

To give you an idea of how much you might pay for travel insurance, we at the Guides Home Team collected insurance quotes from some of the country’s top providers. Use the chart below to estimate what you might pay for your insurance before getting your free quotes.*

*Quotes were received using the details above from each company’s website in December 2023.

Is Trip Cancellation Insurance Expensive?

Whether trip cancellation insurance is expensive largely depends on factors such as your destination, number of travelers, trip length and more. However, some travelers may find buying a plan with trip cancellation protection worth the peace of mind, as it typically only costs a small fraction of your overall trip expenses.

To help you better understand overall trip expenses compared to insurance costs, we found that travel insurance costs around 2% to 3% of the total cost for the $3,000 seven-day trip to Mexico and about 4% to 6% of the total trip costs for a $7,000 10-day trip to France. These travel insurance policies include trip cancellation coverage for 100% of the total costs of both trips.

How Do I Get Trip Cancellation Insurance?

While there are companies that specialize specifically in travel insurance, you can purchase trip cancellation insurance through an independent insurance company. Travelers with general needs can buy insurance through companies such as Nationwide, AIG and more. 

Most insurance companies now allow you to get a quote for travel insurance online in as little as five minutes. Before you sign up, collect all receipts and invoices for nonrefundable expenses to calculate how much coverage you need. You should get a few quotes from competing service providers before deciding which option suits you best.

If you booked your coverage through a travel supplier — a travel agency or cruise line, for example — an agent may be able to arrange coverage on your behalf.

Is Trip Cancellation Insurance Worth It?

The value you’ll get from your trip insurance will vary depending on the specifics of your upcoming travel plans. If you’re planning to travel within the United States or on a strict budget, you likely won’t need trip cancellation insurance.

On the other hand, if you’re preparing for an international vacation or a trip with costly airfare and lodging, you should seriously consider travel insurance. Even if you aren’t sure trip cancellation insurance is right for you , be sure to get a quote from at least three competing insurance providers — coverage might be more affordable than you think.

Frequently Asked Questions About Trip Cancellation Insurance

What qualifies for trip cancellation.

If you need to cancel your trip for a covered reason, prepaid and nonrefundable trip costs typically qualify for trip cancellation coverage. Covered reasons will vary by the insurance company but may include a family member’s death, job loss or an unforeseen natural disaster.

How much is vacation cancellation insurance?

You can expect to pay between 5% and 10% of the total value of your trip for your vacation cancellation insurance coverage. For example, if you spent $5,000 on a vacation package to Mexico, most travel insurance companies will charge you between $250 and $500 for travel protection. Pricing will vary depending on the time of year you’re traveling, your age, the length of time you’ll be abroad and your trip’s value.

What are the benefits of trip cancellation insurance?

Trip cancellation insurance gives you the peace of mind that comes with knowing you won’t completely forfeit all of the money you spent on your upcoming vacation if you need to cancel at the last minute.

How does travel insurance work?

Travel insurance works the same way as most types of insurance (aside from health insurance). If you’re forced to cancel or abandon your trip due to unforeseen events, you must file a claim and submit proof of your unused, nonrefundable trip expenses to your insurance company. The insurance company will review your claim and determine your payout eligibility. The travel insurance provider will reimburse you if your policy covers your submitted expenses.

What is the maximum coverage amount for trip cancellation insurance?

When you sign onto an insurance policy with trip cancellation coverage, your insurance provider will ask you to disclose the total monetary value of your trip. Your trip’s total reported value is the maximum coverage amount you can potentially claim from your travel insurance policy. Some insurance companies have begun offering a bit of coverage above the trip value for select trip delays and cancellations that require sudden, last-minute travel, such as an emergency that requires out-of-country medical treatment or a natural disaster.

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