Trip cancellation insurance reimburses you for non-refundable travel costs if you’re forced to cancel your trip before departure. But what counts as a valid reason to cancel? And what’s specifically excluded?
What Trip Cancellation Typically Covers
- Unexpected serious illness or injury (you or a travel companion)
- Death of a family member
- Redundancy from employment
- Natural disaster at your destination
- Government travel advisories (check your specific policy)
- Jury duty
What’s Usually NOT Covered
- Changing your mind (“disinclination to travel”)
- Pre-existing medical conditions (unless declared and accepted)
- Pregnancy complications after purchase (check terms)
- Events you knew about before purchasing
- Cancellations due to fears about COVID (unless covered specifically)
How Much Cancellation Cover Do You Need?
A good rule of thumb: your cancellation cover should be at least equal to your total non-refundable travel costs, flights, hotels, tours, cruises, and other pre-paid expenses.
For a family holiday to Europe, this might be $10,000–$30,000 AUD. Ensure your policy limit covers this.
