Travel Cancellation Insurance

Cancellation cover protects you from the financial expenses of having to cancel a trip or cutting it short. Cover can be featured as a benefit in travel insurance or can be purchased as a standalone policy. It can also be featured as a benefit in a policy or purchased as a stand-alone insurance policy.

Having cancellation in your travel insurance means that you can claim money back up to a certain amount depending on the reason for the cancellation.

Travel insurance cancellation cover options

You can get cancellation cover in a few different ways;

• Cancellation only option

Handy if you're staying close by, spent a decent amount on your trip and aren't concerned about medical cover.

• Unlimited cancellation option

The easiest and safest option, especially if you've spent a lot on your trip.

• Chosen cancellation option

A clever way to maximise other benefits if you don't need that much cancellation. Only pay for the cancellation cover that you need.

Cancellation only option

Cancellation only cover is available if your trip is in Australia, New Zealand and the Pacific Islands, and there are only a handful of Finder partners who offer a policy with coverage like this. Depending on your policy, you can get cover for up to $10,000.

Cancellation only policies are a good idea if you've spent a lot on your trip. Consider all the things you pre-book; flights, accommodation, car hire, activities, etc. You risk losing all that money if you don't have cover and you need to cancel the trip because of something unexpected.

Brand	Policy Name	Amount	Go to site
Covermore	Domestic Cancellation	Chosen amount	Get quote
Qantas	Australian cancellation and baggage, Australian cancellation baggage and rental vehicle excess, New Zealand and Pacific Islands cancellation and baggage	$2,000
RACV	Domestic Cancellation	$1,000

^{*Table was last updated in September 2019}

Unlimited cancellation option

You'll find that most comprehensive policies will include unlimited cancellation cover or at least between $20,000 - $50,000. For peace of mind, it would be the easiest option to just choose a policy with unlimited cancellation, however you could think about the value of your trip and if you've actually spent more than $20,000 in the first place. If you haven't, you could be paying for a benefit that you don't actually need.

For peace of mind, these are our partnered brands that offer unlimited cancellation cover.

Brand	Policy Name	Amount	Get to site
1cover	Comprehensive, domestic, frequent traveller and already overseas	Unlimited
All Clear	Gold plus cover	Unlimited
American Express	Ultimate and domestic	Unlimited
Boomers	Comprehensive and domestic	Unlimited
Budget Direct	Comprehensive and annual multi-trip	Unlimited
fastcover	Comprehensive, snow sports plus, domestic plus, frequent traveller saver	Unlimited
Insureandgo	Gold	Unlimited	Get quote
Medibank	International comprehensive and domestic	Unlimited	Go to site
Qantas	International comprehensive and annual multi-trip	Unlimited
Simply Travel	Comprehensive, frequent traveller and australia only	Unlimited
Ski-insurance	International, frequent traveller, domestic and domestic frequent traveller	Unlimited
TID	The works and annual multi-trip	Unlimited
Travel Insurance Saver	International travel plan and annual multi-trip	Unlimited
Travel with Kit	Comprehensive and inbound travel	Unlimited
World2cover	Top	Unlimited
Zoom	Plan C and Plan D	Unlimited

^{*Table was last updated in September 2019}

Chosen cancellation option

If you value flexibility and want to get the most out of your benefits, this option could be suitable for you. These policies either exclude cancellation cover or provide minimal cover in the base policy. At time of purchase, you then have the option to choose what level of cancellation cover is best for your trip, and you pay for that amount. This means, if you don't need much cancellation cover, you won't have to pay for it.

We did the research and found these Finder partners who offer policies that allow you to choose your level of cancellation cover.

Brand	Policy Name	Amount	Get to site
Australia Post	International comprehensive	Chosen cover
Covermore	Comprehensive, Domestic cancellation, Inbound	Chosen cover	Get quote
Online Travel Insurance	Comprehensive, multi-trip and domestic	Chosen cover
Virgin Money	Comprehensive and essentials	Chosen cover
Worldcare	Comprehensive and essentials	Chosen cover

^{*Table was last updated in September 2019}

What's covered by cancellation travel insurance

Here are some examples of pre-paid travel expenses you can claim back on cancellation cover:

• Cancellation fees charged by airlines, hotels, tour operators, rental car companies and more
• Non-refundable deposits for pre-booked flights, accommodation, tours and more
• Travel agent cancellation fees
• Lost frequent flyer points that cannot be recovered
• Additional travel expenses if you need to return home early from your trip
• Tuition fees if you had paid for a course or training at your travel destination

How to find the best travel cancellation insurance for you

The best policy for one person might not be the best policy for another, so your ideal policy really just comes down to your specific requirements. Here are some tips on how to settle on the right policy:

• Determine your needs and budget. You can find policies with unlimited cancellation cover and policies with only a couple thousand in cancellation cover. Weigh up how much you are spending on your trip with the likelihood you will have to cancel and how much it would hurt to lose that money if you did cancel. This will help you decide how much cancellation cover to get.
• Look at what is covered. Check the policy documents of a few policies to find out what exactly they'll accept for a cancellation claim. For example, some insurers will cover you if you cancel because your first cousin or aunt passes away. Others limit it to immediate family.
• Look at what's not covered. Read through the exclusions of a few policies to see if there are any that concern you. For example, some policies won't cover you if you have to cancel because you were injured skiing if you haven't purchased their optional ski cover as well. Having ski cover wouldn't make sense if you were going to the tropics, so you'd have to watch yourself on the slopes prior to departing.

When looking for cancellation cover, enter your trip details into our search engine. You can then select "Cancellation fees" on the sidebar or have a look at the second column in the table to show specific amounts.

Find a policy with Cancellation Cover

What are some reasons you could be covered by cancellation cover?

Some insurers come right out and tell you what they'll cover, while others only tell you what they won't cover (these are called exclusions and we'll touch on them later). At any rate, what the covered events all have in common are that they are unexpected and outside of your control.

Below are some situations that are commonly recognised as qualifying for cover, as long as there's no way you could have seen them coming (ie, unexpected). Just make sure you check your insurer's policy documents because not every insurer treats these situations exactly the same.

• Cancellation due to a close relative's illness or death. This usually applies to immediate family members (including step-family) and extends to include grandparents, grandkids, in-laws, fiancés, de facto partners and official guardians. Some policies will also include first cousins, aunts, uncles, nieces and nephews and even business partners. However, if one of them had a serious illness before you bought the policy, you probably won't be covered.
• You die or suffer a serious illness or injury. Similar to above. If you come down with pneumonia, break your ankle or suffer some other serious illness or injury, you will be covered as long as it's not caused by a pre-existing condition or you weren't acting recklessly when it happened. If you die, the funds will be paid to your estate.
• A natural disaster batters your destination. This means an extreme event like an earthquake, hurricane, blizzard or tornado makes it unsafe to travel to your destination. Your insurer may want to see evidence of an official government declaration, such as a state of emergency or an official travel warning. You might not be covered if the natural disaster was already a known event (i.e. already reported by the government or media).
• A course you were to attend got cancelled. You're only eligible to claim for this under trip cancellation if the cancelled course was the sole purpose of your trip. If that's the case, you can be reimbursed for the cost of the course, plus all of the travel and accommodation costs.
• You become pregnant. This only applies if you become pregnant after you took out the policy and you've progressed in your pregnancy beyond a certain point by the time you were supposed to depart (for example, you are 32 weeks pregnant when you were supposed to leave), or if you experience pregnancy complications.

Does travel insurance cover flights?

For the most part, yes, but it does depend on the reason for the cancellation. Here are a few examples;

When booking a trip, your flight is usually the first big payment you have to make. That's why it's a good idea to buy travel insurance when you buy your flight to cover you for unexpected cancellations.

Looking for other insurance options?

Find out how to protect your finances during the global coronavirus pandemic with insurance.

Does travel insurance cover hotel cancellation?

Similarly to flights, there are some circumstances when you can claim hotel cancellation under your travel insurance. Here are some examples;

What's not covered by travel cancellation insurance?

Just because your travel insurance policy includes cancellation cover, don't assume that you will be covered if you cancel your trip for any reason (unless you bought that policy). As we touched on above, travel insurers only cover you when you need to cancel or cut your trip short due to situations that are unexpected and outside your control. That means no cover will be provided if:

• You change your mind. You can't cancel your trip 'just because' and expect to get reimbursed. Changing your mind is neither unexpected nor outside of your control.
• You need to cancel because your visa is denied or you have passport issues. It's up to you to make sure you have permission to enter the country you are visiting. Your insurer won't pay for your cancelled trip if you've made the assumption that your visa would be granted or that your passport would arrive on time.
• Your best friend dies. Most policies clearly state that you can only claim for cancellation if it is a relative who dies, and they will make it clear in the fine print what they mean by relative.
• You get reimbursed by the provider. You can't double up if you're eligible for a refund through your trip provider like your hotel. Your insurance will only pay for prepaid expenses you can't get back any other way.
• You travel against your doctor's advice. If you're advised by a medical practitioner not to go on your journey but you travel anyway, your policy won't provide any cover. Travelling against medical advice is a key exclusion on all policies; however, if you cancel your trip because your doctor says you're unfit to travel, you'll be covered for cancellation fees and lost deposits.
• Your tour is under-booked. If you've pre-booked a tour on your holiday and then it's cancelled due to under-booking, your policy won't provide any cover. It will be up to the tour provider to either reschedule your trip or provide a refund.
• You purchase after something happens or there's been a warning. Your insurer won't cover you if you bought your insurance after there had been reports of an approaching hurricane, social unrest or whatever it is you are trying to claim for.

Tips on getting your travel insurance cancellation claim paid

If you're making a travel insurance claim for cancellation, there are a few simple things you can do to improve the chances of your claim being paid:

• Get proof of the reason for cancellation. If you need to cancel your trip due to a covered event, make sure you can provide evidence that the event actually happened. For example, you may need a letter from your doctor explaining why you were unfit to travel.
• Get proof of the expenses you're claiming for. If you want paid for unused travel expenses, you'll have to show that you actually paid for them and aren't eligible for a refund. Save all your receipts and itemised bills; collect documentation outlining your cancellation fees and penalties; and get letters from tour operators and travel agents detailing any non-refundable deposits.
• Read the fine print. As we've touched on above, travel insurance doesn't cover you if you cancel your trip for just any reason. Exclusions, terms and conditions apply, so familiarise yourself with them before you cancel your trip.
• Buy travel insurance ASAP. Travel insurance can provide cancellation cover from the moment you purchase a policy, so don't delay buying it. If an unexpected event occurs before you purchase the insurance, you won't be covered if that event forces you to cancel your trip.

When should you buy travel cancellation insurance for your trip?

You should buy travel insurance as soon as possible after booking your trip because the whole purpose of travel cancellation cover is to cover you for events that happen before your trip. If you wait until the date of the trip to buy insurance, you're basically wasting your trip cancellation cover.

Get travel insurance with cancellation cover

Get a quote for travel insurance and compare options with cancellation cover. Our comparison tool will show you the policies with the most cancellation cover at the top of the list.

Finally, some good news! Domestic travel is picking up, so some insurers have started offering cover again 🦘
Just remember, you won't be covered for any pandemic related claims if you do take out domestic travel insurance.
International travel insurance is limited and sometimes unavailable at this point.

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Some other questions you may have

• Can I get Cancel-for-any-reason cover?

  Please note that Cover-More has announced a suspension of any new Cancel For Any Reason (CFAR) policies as of 5pm AEST on Friday 13 March 2020 in Australia and New Zealand, in the face of the global coronavirus crisis. If you've already purchased CFAR before this date, you'll still be covered as per the usual terms and conditions.

  This is not common in Australia, but CoverMore offers an optional add-on if you purchase its International Plus, Inbound or Domestic policy. The catch is that you can only get this cover through travel agents like Flight Centre, Helloworld, Magellan and Travellers Choice and some other independent travel consultants and brokers.
  CoverMore will cover up to 75% of $10,000 (you choose the amount) if you have to cancel your trip for a reason that isn't normally covered. Here are a few other considerations;

  • You have to have bought the policy within 7 days of the first payment of your trip
  • If you cancel, you need to do it at least 7 days prior to your departure
  • If you book more travel after you purchased the policy, you will have to cancel more than 14 days before you depart if you want to be covered for the additional booking

• Will cancellation travel insurance cover my tour and deposits?

  If you have cancellation cover included on your travel insurance policy, it will generally cover any sort of cancellation expense whether it be for your tour, flights or accommodation.

  The only times it won't cover your tour is if you cancel because of change of mind, if the tour company cancels the tour (because they will be liable for your compensation) or if the reason behind your cancellation is generally excluded from your policy.

  If you're already on your tour and need to cancel, you might be able to claim back the unused portion, but this all depends on your policy type.

• Does travel insurance cover you for cancelled flights?

  It definitely helps in most cases. It can also help with the expenses related to the cancelled flight like extra accommodation, extra meals, arranging other modes of transport if you're on your way to a special event, etc.
  Travel insurance may not cover you if your cancelled flight is due to a mechanical issue with the plane. The reason for this is because liability will fall on the airline to make other arrangements for you.

• Can I buy trip cancellation insurance only?

  Our Finder partners only offer this for domestic trips. It can be hard to find insurance that will cover trip cancellation only for international travel. You might be able to get some sort of add on directly with an airline, hotel or tour company if you're worried about needing to cancel.

• What is a covered reason for trip cancellation?

  Reasons for cancelling a trip can include sickness, a death in the family, an unexpected natural disaster and government warnings to name a few. Essentially, the cancellation has to be due to an unforeseeable and unavoidable circumstance.

  This doesn't include reasons such as not getting your annual leave from work approved, breaking up with a partner before the trip or change of mind.

• Can I cancel my travel insurance policy and get a refund?

  Yes, all policies offer a cooling-off period during which you can cancel your cover and get a full refund. This is usually between 14 and 30 days after purchase and will only be paid if your trip hasn't yet started and you haven't already made any claims.

• Does travel insurance cover cancellation due to illness?

  It definitely can, but it also depends on your illness. To get your claim approved, you need to have a certificate from a medical practitioner saying that you're not fit to travel. This means that you won't be covered for mild headaches and stomach cramps.
  Another thing to consider is pre-existing medical conditions. If your illness is related to a pre-existing medical condition that you haven't disclose, you won't be covered for any expenses.

• Will I be covered if I have to cancel my holiday due to a terrorist threat?

  It will depend on the policy you choose. Some insurers will provide cover for claims related to terrorist threats while others will exclude it. You can find out who will offer cover terrorism here.

Picture: GettyImages