For different reasons, which may vary according to each person and situation, at some point a trip may have to be cancelled. It is not uncommon for a trip to be canceled, even if you have planned everything in advance.
This is a situation that is part of the travel routine and it is important to know how to act to know your rights in this case.
However, it is often precisely the existence of travel cancellation insurance that can help you resolve things more peacefully.
In this post we prepare an explanation about this type of event and the differentials of this product at the time! Find out more below:
Why should I take out insurance for a smoother trip cancellation?
Travel insurance is a very effective solution for many unforeseen situations that may occur during a trip.
Some basic coverages, for example, offer greater security in case of need for medical care and accidents, which even cause disability.
In some cases, they offer compensation, proportional to what was contracted (according to the policy), in cases such as lost luggage. So you can see how advantageous and more comfortable it is to travel with good coverage.
There is also travel insurance covering the practice of sports and the specific needs of users.
Recently, however, with the crisis caused by the coronavirus pandemic, many people have been in doubt whether or not insurance is required to cover related treatments.
With the exception of such exceptions, in most cases, the insured will be fully covered in the event of occurrences that require assistance.
However, in addition to all this, such insurance can help the customer when canceling the trip .
Hiring him is to have a guarantee that, in case of withdrawal, there will be reimbursement of tickets and expenses with reservations and any excursions already programmed.
How does trip cancellation insurance work?
Moving on to the practical side, trip cancellation is usually extra coverage in travel insurance.
It must be included in the policy, in addition to those already commonly present or chosen at the insured’s discretion.
If this forecast is contained in the document, the insured can activate the coverage even before traveling and receive the reimbursement.
This trip cancellation fee includes fees or fines that the airline may charge for cancellation and accommodation. After the insurance is issued, even tours already purchased are also reimbursed.
The customer has the least possible loss and greater peace of mind to schedule the next trip, when he can.
Does insurance cover what reasons for trip cancellation?
There are basically two criteria used for trip cancellation. They are, in short, justified cases and non-justifiable cases. In the first, compensation is usually total.
But in the second there may be some caveats. Among them is also the deadline that insurers ask for the customer’s decision to cancel.
Check out a little about each one:
For trip cancellation, several reasons are accepted and justifiable. Generally, the most extreme cases, such as death, serious illness or accident (of the insured or a family member) are already provided for in the policies.
Other cases, such as plans that provide for more possibilities, may cover more specific reasons. It is the example of someone who is incorporated into a new job vacancy and cannot move.
However, the Any Reason option (as the name implies, any reason) does not ask for justification for the customer to make this choice. There are, however, some differences in relation to reimbursement, which may not be full in these situations. That’s why it’s always important to see if it pays to proceed with giving up.
It is important to remember that the insurance company will not always reimburse, also, when the customer gives a last minute notice. Optional cancellation must normally occur an average of 2 days in advance to be accepted.
If he decides to withdraw when there is not 48 hours notice to communicate, he loses his right to refunds; even if he has paid for insurance with that coverage.
That’s why it’s always worth paying close attention to the policy information and talking to a trusted broker who will clarify all your doubts beforehand.
Below we explain better how the Any Reason option works.
When the customer opts for Any Reason, theoretically, he is entitled to request cancellation without a specific cause.
However, insurers may not fully reimburse you, as they would in justifiable cases.
The refund can be 75% which is good value but not full. So, if this happens to you, check which clause is contracted.
For greater convenience, before hiring, try to know these conditions.
What are the benefits of travel insurance?
As you may have noticed, insurance that has this coverage offers many benefits for canceling trips.
Without it, the person who has planned a trip, and suddenly ends up having an unforeseen event and cannot postpone it, risks losing all the money invested. It is often worth remembering that these unforeseen events are not manageable or have a solution provided for the insured to be able to negotiate with companies and hotels.
If, unfortunately, they find themselves having a health problem, the situation can get even more delicate.
So it’s always good to be cautious.
In addition, travel insurance gives the customer more freedom to make decisions according to their schedule, regardless of the reason. This can be especially important for those who have a very busy work routine or will travel with their family, as not everyone can easily reconcile dates.
Were you able to better understand how the refund works in case of cancellation of the trip? Are you going to do yours and need good travel insurance? How about quoting now?