What is cancellation cover and is it worth it?
Protect yourself and your money with holiday cancellation cover
Unfortunately, even the best-laid plans can often go awry. Whether it's because of illness, a home emergency, or something else, there's plenty that can put your holiday plans up in smoke. This is where cancellation cover comes into play. But what exactly is travel insurance cancellation cover, what protection does it offer, and is it worth it? Find out the answers to these questions – and others – below.
What is cancellation cover for travel insurance?
Travel insurance cancellation cover offers financial protection if you need to cancel a trip due to unforeseen circumstances. You'll be able to claim for the cost of your holiday, up to a certain amount, due to events such as accidents, emergencies or redundancy, which prevent you from going on your trip.
Many travel insurance policies also feature curtailment cover, which will protect you if you need to cut a trip short. Instead of you being compensated for the full cost of your holiday, however, your payout will be pro rata – so in line with the number of days you had left.
Does standard travel insurance cover cancellations?
Cancellation coverage is usually included in normal travel insurance policies as standard. But do check to be sure, and bear in mind that the amount of cancellation cover included as standard will vary from provider to provider.
Crucially, make sure that the amount of cancellation cover is right for YOUR trip. For example, you may get £1,500's worth of cancellation cover, but have paid out £3,000 for a week-long all-inclusive summer holiday in Europe. In this case, look for another policy giving you greater coverage – our Cheap Travel Insurance Finder tool can help you find the best travel insurance policy for your needs.
In the specific case of a flight being cancelled, by law you may be entitled to a replacement flight or refund, and potentially compensation on top – see our Flight cancellation rights guide to find out whether this will apply to you. Where a refund or replacement flight isn't possible, you may be able to claim through your insurance, though cover here is often limited.
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What does holiday cancellation insurance cover?
Travel insurance cancellation cover will protect a number of different expenses, including:
- Booked transport and transfers. From train tickets to car hire deposits.
- Accommodation costs. Whether it's a hotel, hostel or holiday home.
- Other non-refundable expenses. Such as a booked tour.
This is why it's critical to buy travel insurance As Soon As you've Booked (ASAB) – it ensures you're covered from the off, and are protected if something happens to scupper your trip before you go away. That could be anything from an illness or bereavement preventing you from travelling, or a Foreign Office warning saying not to go to your destination.
You can get cover for a single trip, or an annual travel insurance policy, which usually makes sense if you're going away twice or more in a year.
When can I make a claim on my cancellation cover?
What exactly you're covered for and the level of protection depends on your policy and provider. Always check a policy's terms to ensure you're getting the right cover for you, though generally speaking, you are and aren’t covered in the following circumstances:
Circumstances you CAN make a claim in |
Circumstances you CAN'T make a claim in |
Illness, injury or death. You, a relative, travelling companion or someone you've arranged to stay with suffers an injury, becomes ill or dies, and/or you have to attend a funeral. | Changing your mind. You won't be protected if you simply choose not to go on a trip. |
Being summoned to court. For example, for jury duty or being summoned as a witness. | Undeclared pre-existing medical conditions. There's no protection if you can't travel because of undeclared pre-existing medical conditions. |
Pregnancy complications. You may also be covered if someone you're travelling with has a pregnancy complication meaning they can't travel. | Cancellations after being under the influence. Injuries or incidents caused by being under the influence that stop you from travelling. |
Your destination is deemed unsafe. If the Foreign, Commonwealth & Development Office advises against travel there. | Not getting time off work. You won't be covered if you simply can't get the time off work to travel. |
Home emergencies. For example, a fire, flood or break-in. | Cancelled flights. You will need to try to claim compensation from the company first. That said, your insurance MAY cover this. |
Work issues or commitments. For instance, you're made redundant or you have to return to military service during your planned trip. | Events that you knew about before you took out insurance. For example, an airline strike or an arranged commitment. |
Remember that travel insurance is there to cover the cost of the unforeseen, so if you knew about something before you took out a policy and later used that as a reason to cancel your trip, you WOULDN'T be covered. So, for example, if you had a holiday booked and then found out you were about to be made redundant, then took out insurance, you wouldn't be covered for cancellation for that reason.
Does standard travel insurance cover flight cancellations?
Airlines have to offer a refund or arrange an alternative flight, and possibly give compensation too, by law, if they cancel your flight. (You may also be due compensation if your flight is simply delayed.) This means that generally you should approach the airline over a cancelled flight – see Flight cancellation rights for more – rather than your insurer.
That said, it's still possible that your travel insurance policy covers flight cancellations in some circumstances – for example, if your airline doesn't offer an alternative flight within 24 hours of the original cancellation. The level of cover will depend on your particular policy, and you may have to meet certain conditions to make a successful claim.
Can you get cancellation coverage with a pre-existing medical condition?
You'll almost certainly still be able to get cancellation cover as part of a travel insurance policy if you've got a pre-existing medical condition. But if you've had a serious medical condition, or are having treatment for one, you'll likely be quoted much higher prices for the cover.
Luckily, there are various ways to cut travel insurance costs, as we run through in our Travel insurance for pre-existing conditions guide. Remember to ALWAYS be upfront about any pre-existing conditions you may have, as if you don't tell your insurer about them, you could invalidate any claims.
How do I claim for a holiday cancellation?
Firstly, contact your insurer as soon as you know you need to cancel. It will be able to guide you through the claims process and clarify any policy details.
To actually make the claim, you'll need to give relevant evidence, such as:
- Proof of bookings and cancellations, such as receipts and invoices.
- Travel documents outlining your planned holiday.
- Medical documents for health-related claims.
- A death certificate if you cancelled your trip due to a bereavement.
- Official evidence for other legitimate cancellation reasons, such as a jury duty letter.
So, be sure to always keep hold of any documents until you get back home, just in case you need them.
You usually must try to recover costs yourself first
Also be aware that, should you need to claim for cancellation, you'll typically need to prove the hotel or tour operator won't refund you first.
Often travel insurance policies have a clause built in that says they won't cover 'recoverable costs', which essentially means you need to prove that you can't claim back the cash elsewhere.
So you'll usually need to ask the provider, for example, a car hire firm (and in some cases your credit card company, in case you're covered under Section 75 laws), for a refund before your insurer would even consider a claim under the travel insurance policy. Many insurers also consider a credit note to be a satisfactory refund method, and may not pay out if one has been offered.
Travel insurance provides crucial cover, but for extra protection for your trip:
- Pay on credit card where possible (because of the Section 75 refund rules mentioned above)
- Book easily cancellable or flexible elements of the trip, such as flights, car hire and accommodation
- Consider a package holiday, which can offer greater protection
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Is cancellation cover worth it?
Cancellation cover, which is typically included as part of a standard travel insurance policy, is most definitely worth it. It provides arguably the most crucial protection of all the different elements of cover that you get under a travel insurance policy. Providing you get travel insurance ASAB (As Soon As you Book), you'll get key financial protection if you need to cancel your trip before you go away, as well as a lot more cover.
An individual could pay less than £10 for a travel insurance policy for a single trip to Europe, which would give them £1,500's worth of cancellation cover. So looking at the numbers, it's a no-brainer. And that's not to mention the other elements of cover you'd get as part of a travel insurance policy, protecting you for medical expenses, loss of baggage or cash and much more.
So considering the cost and all of the cover you get, travel insurance cancellation cover does make complete and total sense – DON'T plan trips without it.
Cancellation cover travel insurance FAQs
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