Travel coverage

Trip cancellation and interruption insurance

Trip cancellation and interruption coverage reimburses the prepaid, non-refundable money you’d lose if a covered reason forces you to cancel a trip or cut it short. It protects the trip’s cost, not your health.

Reviewed by Scott Stafford, Licensed Insurance Agent

Last updated

What it covers

Trip cancellation and interruption coverage is about protecting money, not health. Trip cancellation reimburses the prepaid, non-refundable cost of a trip — flights, cruise fare, tours, hotels — if a covered reason forces you to cancel before you leave. Trip interruption reimburses the unused portion of a trip, plus the often-pricey last-minute cost of getting home, if a covered reason cuts the trip short after it’s begun.

Covered reasons matter

This is the catch people miss: a standard plan pays only for a defined list of covered reasons — typically your own or a family member’s illness, injury, or death, along with things like severe weather, a called-up jury summons, or certain emergencies. Simply changing your mind, or general anxiety about traveling, isn’t covered unless you add the upgrade below.

Cancel for any reason (CFAR)

Cancel for any reason is an optional upgrade that loosens those rules. It reimburses a portion of your non-refundable costs — commonly 50% to 75% — if you cancel for a reason not on the standard list. It comes with conditions: you generally must buy it within about two to three weeks of your first trip payment, insure the full trip cost, and cancel at least 48 hours before departure. It costs more, but it’s the only way to get money back for an off-list reason.

How much to insure

Insure the prepaid, non-refundable portion of your trip — not the parts you could get back anyway. For a cruise or an escorted tour, where most of the cost is paid up front and non-refundable, that can be the whole trip; for a trip booked on refundable fares, it may be very little.

Other benefits often bundled in

Trip-protection plans frequently include travel-delay reimbursement, baggage loss or delay coverage, and missed-connection benefits. These are modest next to the cancellation benefit, but they round out a plan and handle the smaller mishaps that are far more common than a full cancellation.

Common questions

Trip cancellation FAQ

What counts as a covered reason?
Standard plans list them: typically your own or a family member’s illness, injury, or death, plus events like severe weather, jury duty, or certain emergencies. Reasons not on the list aren’t covered unless you add cancel-for-any-reason coverage.
What is cancel for any reason (CFAR)?
An optional upgrade that reimburses part of your non-refundable costs — often 50% to 75% — if you cancel for a reason not on the standard list. It usually must be bought within a couple of weeks of your first payment, with the full trip insured, and you cancel at least 48 hours before departure.
Does trip cancellation cover illness?
Yes — your own or a covered family member’s illness or injury is a standard covered reason on most plans, as long as it meets the plan’s terms. Read the policy for how it defines covered medical reasons.
Do I need it for a refundable trip?
Probably not for the refundable parts. Trip cancellation reimburses prepaid, non-refundable costs, so its value tracks how much of your trip you’d actually lose — high for cruises and tours, low for fully refundable bookings.

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