Is it worth taking out trip cancellation insurance?

When organizing a getaway there are many things that we must take into account: the hotel, luggage, transport, excursions ... Preparing a trip takes time and to get a bargain you have to search well in advance. Even so, we may not find a cheap enough trip so if, at the last minute, we are forced to cancel the holidays, it is not pleasant to waste the time invested in preparing it and the savings that you had destined to travel.

Hiring a trip cancellation insurance can be an extra expense that you do not want but in circumstances that we cannot foresee, it will be very useful so that at least the economic loss does not affect you. Think that with that money you can re-plan that same trip on another occasion.

Travel cancellation insurance offers security against different scenarios that may prevent you from traveling and, therefore, lose money for tickets to museums and monuments, plane tickets, hotels, rental vehicles, etc. The cost of an insurance of these characteristics varies depending on the amount declared to be insured by each person, being a percentage of that amount.

What is trip cancellation insurance?

These are usually clauses attached to specific insurance or as part of the requirements of a trip. It is only valid if it is contracted from the beginning at the time of making the reservations for the trip.

The coverage of this insurance is usually large and at a reasonable price. In any case, there will be more options that you will cover if you pay a higher price, but generally they do not suppose a very expensive extra if you take into account its usefulness in the event of needing it.

Travel cancellation insurance coverage has a limit depending on the insurer, from which it will not be responsible for the expenses. It is precisely the limit you choose that will determine the price of the trip cancellation insurance. The higher the limit, the more things will be covered but it will also be more expensive.

The fundamental thing when hiring a trip cancellation insurance is to find the balance between the price to pay for the insurance, the activities contracted, the type of trip you are going to make. It makes no sense to pay by excess or by default, because in one case you will lose money and in another you will pay more for something that you will not recover if something does not go well.

Something very important about this type of insurance is to save all the invoices for the excursions that you hire or the expenses that you make, since these receipts will be the ones that verify the type of return to be made in case you need it.

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What situations can cancellation insurance cover?

Premium insurance may cover:

  • Illness of the insured or relative verified by a doctor that involves at least one day of hospitalization or temporary disability during the week prior to the trip.
  • Accident of the insured or relative. Physical damage verified by a doctor that involves at least one day of hospitalization or temporary disability during the week prior to the trip.
  • Death of the insured or relative.
  • Dismissal of the insured.
  • Serious damage due to fire, theft, explosion or flood in professional premises or habitual residence.
  • Appointment as plaintiff, defendant, jury or witness.
  • Call to be a member of a polling station.
  • Appointment for surgical treatment to the insured or family member.
  • Cancellation of a companion registered at the same time in the same reservation and insured.
  • Transfer of work that entails a change of habitual residence of the insured at a geographical level.
  • Joining a new company for a contract of more than one year.
  • Presentation as an opponent to official exams for public examinations.
  • Death of a third degree relative.
  • Illness or serious accident of the employee hired by the insured to guard minor children.
  • Death of the person hired by the insured to care for minor children.
  • Miscarriage or serious complications in pregnancy that require complete rest.
  • Police arrest of the insured.
  • Theft of documentation or luggage 72 hours before the trip to travel.

A standard insurance may cover:

  • Illness of the insured or relative. Health disorders Health verified by a doctor that involves at least one day of hospitalization or temporary disability during the week prior to the trip.
  • Accident of the insured or relative. Physical damage verified by a doctor that entails, during the week prior to the trip, at least one day hospitalization or temporary disability.
  • Cancellation of a companion registered at the same time in the same reservation and insured.
  • Death of the insured or relative.
  • Appointment for surgical treatment to the insured or relative.
  • Serious damage due to theft, flood, explosion or fire in professional premises or habitual residence.

In short, having trip cancellation insurance is a good idea so as not to lose everything invested in the event of having to cancel the trip. Since each trip is different, it requires a certain preparation and the final price is also different. Get in touch with several insurers before hiring one and just worry about enjoying yourself.

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