Holiday costs often run into hundreds or sometimes thousands of pounds, so if you are thinking about planning a break, it makes sense to have trip cancellation insurance in place in case you are unable to travel for reasons beyond your control.
Illness, injury or a family bereavement can mean having to cancel your travel plans at the last minute. Missing out on a holiday is bad enough but ending up out of pocket because you didn’t take out holiday cancellation insurance can make things even worse.
It is therefore a good idea to find out whether your travel insurance covers cancellation so that you can enjoy peace of mind if you should end up cancelling your holiday due to family illness or another reason . Here is what you need to know.
Does travel insurance cover cancellation?
Over the past couple of years, the pandemic and ever-changing travel restrictions have made more people ask will travel insurance cover cancellation of a holiday? Most travel insurance policies do include cancellation cover, which will pay out in the event you have to cancel your holiday due to unforeseen circumstances, such as an illness or injury that prevents you from travelling.
However, holiday cancellation insurance will not cover you if you decide to cancel because you no longer want to go or you can’t get time off work. So make sure you read the fine print before you assume that your policy will cover you.
What is covered by holiday cancellation insurance?
The exact situations your trip cancellation insurance will cover will vary depending on the particular policy you choose.
However, as a general rule, cover will be provided for circumstances outside of your control, such as:
- Cancelling a holiday due to family illness or injury if you have booked to travel with or plan to stay with that family member meaning you are no longer able to travel
- Your property is affected by flooding or fire just before your holiday
- You are summoned for jury service on the dates your holiday is booked
- Your passport or the passport of someone you are travelling with is stolen
- If you or someone you are travelling with is ordered to return to duty in the emergency services or Armed Forces.
Cover for this on single-trip policies will start from the date when you paid your premium rather than the days you are travelling. For annual multi-trip policies, this cover will apply from the date that the policy starts.
Does travel insurance cover flight cancellation?
You often do not need specific travel insurance for cancelled flights. If the airline you are flying with cancels your flight, then it is usually their responsibility to find you an alternative flight or to provide you with a full refund for the cost of the flight.
However, if you have to cancel your flight, perhaps because you have had an accident or fallen ill, then you should be covered by your travel insurance policy.
Does travel insurance cover strikes?
If you have booked a package holiday, so your flights and accommodation are from the same provider, and there are strikes at the airline you are travelling with, then it is usually up to your holiday provider to find you an alternative flight to get you to your destination.
If they cannot find you one, then you should be entitled to get a refund for the cost of your holiday from them. Bear in mind that you will not be protected if you booked your holiday knowing that strikes were planned.
If a strike means you are delayed for a significant period, say 12 or 24 hours, depending on the travel policy you have chosen, you may be able to claim for travel delay or for abandonment of your trip.
Does travel insurance cover cancellation due to COVID-19?
Most travel insurance policies will now provide cancellation cover if you have to cancel your trip because you have tested positive for Covid-19 in the run-up to your departure, or if you have been told you must self-isolate. You may need to show a medical certificate confirming you are unable to travel or an official positive Covid-19 test result before your insurer will pay out.
You will not be covered if, for example, you decide not to go on holiday because you have heard there has been an increase in Covid-19 cases at your holiday destination, or if you have to cancel or cut short your trip due to restrictions implemented by any government.
How to find the best travel insurance with cancellation cover
When buying travel insurance, always ensure the level of cancellation cover provided is enough to cover your costs in the event you cannot go on holiday. Check the small print carefully too so that you understand what your policy does and does not cover as well as what medical conditions you will need to declare.
If you need travel insurance and want a policy that offers comprehensive cancellation cover, the Telegraph Media Group Travel Insurance Service, provided by AllClear, may be able to help. It covers a wide range of unforeseen events that may cause you to have to cancel your trip. Policies also include Covid-19 cover.
Get a quote today for your travel insurance policy with AllClear, providers of the Telegraph Media Group Travel Insurance Service.
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Telegraph Media Group Limited is an Introducer Appointed Representative of AllClear Insurance Services Limited, a company that is authorised and regulated by the Financial Conduct Authority.
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