What You Need To Know About Trip Cancellation
WHAT YOU NEED TO KNOW ABOUT TRIP CANCELLATION - With the threat of the coronavirus on the rise, affecting about 56 countries in the world, many of the insurance companies are putting restrictions on their trip cancellation policies.
For those who will be travelling in the coming weeks/months you may be considering your travel plans. If you have not purchased trip cancellation with your travel ticket, you may find it difficult to obtain a policy now. Continue reading to get a better understanding of your options.
At the best of times, it is not always easy to understand the language inside a travel insurance policy wording document and most people don't take the time to read it either.
When it comes to cancelling your trip, it would be important to understand what that contract will and will not cover.
Here is a quick breakdown and summary of most of the trip cancellation policies.
Cancel For Any Reason (CAFR) - is exactly as it states. You can cancel your trip because you just don't want to travel anymore, for whatever reason. However this plan, usually is more expensive to buy and there is an admin fee of about 25%. Meaning you only get back 75% of the full ticket price.
Trip Cancellation - This is necessary if you need to cancel your trip, prior to leaving your home country/province/state. However not for any reason as stated in the policy before. There are circumstances that must arise before the policy will be honored and refunded.
1. Sickness, injury, death of family member or travel companions related circumstances.
2. Travel against medical advise of an attending physician
3. Jury duty
4. Travel Advisory - under travel advisory, know the differences of the definitions and check your government travel advisory directory for the updated information regarding the place you are traveling to.
Here are the common levels used and refund policies.
1. Exercise normal security precautions - the same way you are careful at home - NO REFUND
2. Exercise a high degree of caution - this area may require you to be more cautious - NO REFUND
3. Avoid non-essential travel - the government is recommending you do not travel to this region - REFUND AVAILABLE
4. Avoid ALL travel to this region - the government is warning against ANY travel - REFUND AVAILABLE.
With regards to when to purchase a trip cancellation policy. I say ALWAYS. Because what is happening now, due to the outbreak of the coronavirus, many people are looking to purchase this coverage now, because of the uncertainty of future travels. But if an insurance company or government agency has already issued a No travel advisory, then any policies purchased after that date will not be honored. Meaning as a traveler, you may have missed your opportunity to get a refund, which can be quite costly.
These definitions are purely for quick reference and to evoke you to ask more questions if you are unsure. Therefore I strongly urge you to follow the recommendations as outlined on your government website or notice.
Also note - many of the airlines will reimburse your ticket if there is a restriction on travel. However this is purely for PUBLIC RELATION reasons. They are NOT obligated to under the Passenger Rights Act.
Trip Interruption - not to be confused with trip cancellation. This is a policy that will cover you for any emergencies that may arise after you have left your country/province/state. Some policies (mainly credit card companies) only cover trip interruption and people think they have coverage in case they need to cancel before they leave home. That's why it is important that you read your policy and ask questions if you are unsure.
Look for a Travel Insurance Specialist in your area - @yourtravelwitholivia
#tripcancellation #travelinsurancespecialist # #travelinsuranceexplained
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