Trip Interruption Insurance Basics

Even the most carefully laid plans go haywire sometimes, especially when it comes to travel. Considering how expensive flights and escorted tour vacations are these days, it makes sense to cover your potential losses and invest in trip interruption insurance. While it may add a few hundred dollars to your overall costs, trip cancellation travel insurance can save you thousands in the event that you become sick and can't travel, your airline or travel company goes out of business or you're suddenly unable to secure a travel visa.

Flight Cancellation Insurance

Anyone who's ever flown knows that airline tickets usually aren't refundable unless you purchase an expensive full-fare ticket. Even trying to reschedule a flight can be impossible, or, at the very least, a serious hassle. Flight cancellation insurance can ensure that you receive a refund on the cost of your flight, in the event that you get sick or have a schedule conflict. Flight cancellation insurance will also cover the cost of switching to another airline in case of weather or mechanical delays.

What Trip Interruption Insurance May Not Cover

While most trip cancellation travel insurance covers you for illness and emergencies, not every trip cancellation policy will reimburse you if you cancel your trip for a business conflict, personal reasons or an unforeseen financial circumstance, such as losing your job. If you want your trip cancellation policy to cover you in these situations you'll need to make sure that your insurance includes "cancellation for any reason" coverage.

Some polices also won't cover you if your trip is cancelled due to a terrorist attack or civil disturbance such as a riot. If you're buying your policy directly from an airline or cruise company, the policy may not cover you in the event that the company declares bankruptcy or is otherwise negligent. Be sure to read your trip cancellation policy carefully before buying.

Before purchasing any trip interruption insurance, make sure you know what you're getting and whether or not it will cover your needs. You'll be very disappointed if you pay for trip cancellation travel insurance, only to find out that it doesn't cover what you thought it did.