What Is Trip Cancellation Insurance?


Quick Answer

Trip cancellation insurance is a type of travel insurance that covers the cost of canceling a vacation. It is meant to cover travel arrangement costs when they are not refundable by the airlines or hotel.

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Full Answer

Trip cancellation insurance also provides coverage if a trip is delayed or interrupted, but not necessarily canceled beforehand. The travel insurance company may ask for the reason from canceling and only cover certain situations. This might be an illness or injury, business conflict, delay in getting a passport or weather-related issues. Other companies provide additional coverage if there is a vendor that goes out of business, act of terrorism or a fire or flood that keeps the traveler from leaving.

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