Read before purchasing “Cancel for any reason” travel insurance

To protect your next vacation from the unexpected, you need insurance. insurance.

In fact, when most people think of travel insurance, they probably think of “cancel for any reason” insurance, which allows you to cancel your trip for any reason and receive a partial refund.

“Travel insurance can help you get your money back if you have to cancel for unforeseen reasons that aren't covered,” says Bailey Foster, vice president of travel insurance at Trawick International. do. “However, if you need more flexibility, you may need ‘cancel for any reason’ coverage. ”

“Cancel for any reason” insurance is popular this year. A new report by Cover Genius finds that travelers are willing to pay extra for this comprehensive protection. The study also suggests that when customers purchase “cancel for any reason” insurance, they are satisfied with the additional protection and have higher customer satisfaction scores.

reason? “'Cancel for any reason' is a more comprehensive option that many travelers choose to have extra peace of mind when booking a trip in advance,” Cover His Genius Americas said Kyle Keogh, Chief Business Officer.

Joe Cronin, president of International Citizens Insurance, says typical travel insurance covers a variety of events. “'Cancel for any reason' travel insurance provides an extra level of protection that gives you peace of mind before booking a trip.”

What is “cancel for any reason” travel insurance?

“Cancel for any reason” insurance is, as the name suggests, a policy that allows you to cancel your trip for any reason and receive a refund of a portion of your prepaid, non-refundable travel expenses. It is usually sold as an add-on to traditional travel insurance.

Here's what you need to know about “cancel for any reason” travel insurance.

More flexible than traditional travel insurance. You can cancel your trip by Any reason. Are you worried about terrorism? You may want to cancel the entire trip. Did something happen at work? You can cancel. Do you just not want to go? no problem. You can cancel by Any reason.

However, only a portion will be refunded. Again, you won't get the full amount back. In case of “cancellation for any reason”, his 50% to 75% of the prepaid trip price will be refunded. Non-refundable.

There are other restrictions as well.. Most “cancel for any reason” policies require you to purchase within a certain number of days from your initial travel deposit. For example, depending on the specific product, Trawick's insurance must be purchased within 14 to 21 days from the initial travel deposit, and customers must cancel at least 48 hours before departure.

It is high. Having a reliable “cancel for any reason” policy adds to the cost of the trip and drives up the price (more on that later). Yes, this is the most expensive type of travel insurance you can buy.

Finally, keep in mind that “cancel for any reason” insurance is not a silver bullet. You can cancel for “any” reason, but there are still restrictions, said Chris Carnicelli, CEO of Generali Global Assistance.

“We need to ensure coverage. Really Cancellations are usually possible for non-standard reasons not covered by standard plans. ” he says. “However, this additional flexibility is invaluable for travelers with unpredictable schedules or those looking for extra peace of mind.”

If you're a nervous traveler or have spent a lot of money on your trip (money you can't afford to lose), it might be worth considering a “cancel for any reason” policy. However, it has significant limitations and is expensive.

What’s new in “cancel for any reason” travel insurance in 2024?

This year there are some new developments regarding “cancel for any reason” insurance.

• increase in demand: The pandemic may be under control, but travelers are still worried about future travel. This has led to increased interest in travel insurance (or “utilization'' in travel insurance terminology), especially “cancellable for any reason'' insurance. According to a study by the U.S. Travel Association, nearly 7 in 10 travelers say they are now more likely to purchase travel insurance.
• new news: In addition to traditional travel insurance companies, some platforms offer “cancel for any reason” type coverage. For example, Airbnb offers insurance that allows you to cancel and get back 100% of what you paid. (Strictly speaking, this is not a true “cancel for any reason” policy, but reasons include certain flight delays, serious illness or illness, natural disasters, etc.) Vacation rental platforms such as Vrbo offer similar coverage.
• higher price: Increased demand leads to higher prices. A typical “cancel for any reason” policy can result in up to 12% of the prepaid non-refundable cost. Anecdotal evidence also suggests that prices are rising, even though no one is systematically tracking “cancellation for any reason” rates.

So why is “cancel for any reason” so popular? We asked Robert Gallagher, president of the American Travel Insurance Association. He said many travelers see a “cancel for any reason” policy as a worthwhile investment to protect their travels.

“However, it is important for consumers to understand that travel insurance plans vary,” he added.

Bottom line: More insurance companies are entering the market with expanded coverage options. But in 2024, you will also have to pay an additional fee.

What “cancel for any reason” policy is available?

“Cancel for any reason” policies come in all shapes and sizes. Here are some options for your next trip.

Allianz Partners USA offers “cancel anytime” upgrades to its most popular plans, including OneTrip Prime and OneTrip Premier. These policies provide up-front, non-refundable expenses if the trip is canceled due to unexpected and unforeseen covered reasons, such as the insured's serious illness or injury, natural disaster, or delay in arrival for more than 24 hours. Up to 100% refund. Arrival at the traveler's destination due to inclement weather.

“The 'cancel anytime' upgrade expands cancellations to include most unforeseen circumstances, such as simple plan changes,” Allianz spokesperson Daniel Durazo said in a statement.

Luxury Care from Berkshire Hathaway Travel Protection (BHTP) includes an “Any Reason'' policy that refunds 50% of your non-refundable trip if you have to cancel your trip for a reason not listed in your coverage. There is a “Cancel” option. BHTP's LuxuryCare also allows you to cancel for illness or work reasons. He will also receive generous coverage of $100,000 for medical expenses and up to $1 million for medical evacuation costs.

There are many different types of “cancel for any reason” policies. For example, Insured Nomads has three Explorer Guardian policy hierarchies with a “cancel for any reason” option. Coverage ranges from 100% of costs to $10,000 for interruptions and cancellations.

“It's important to know which insurance is best for you and which will benefit you the most depending on your trip,” says Insured Nomads spokeswoman Weronika Popiorek. “Flexibility is key.”

Trawick International offers a trip cancellation plan that pays up to 100% of your prepaid, non-refundable trip cost if your trip is canceled for a qualifying reason. Add “cancel for any reason” coverage to your plan and receive a generous 75% refund of non-refundable upfront costs. (Trawick's Cancel for Any Reason has won numerous awards for its generous refund policy.) Trawick also recently introduced a new product, Safe Travels Armor, that allows you to add Cancel for Any Reason coverage. But it also includes $100,000 in primary medical coverage. .

US Fire offers one of the most flexible “cancel for any reason” plans. You do not need to insure the entire amount of your trip to be subject to cancellation charges. You can insure at the time of deposit to avoid paying more for insurance than you deposited on your cruise or trip. U.S. Fire will also pay more than 75% of cancellation penalties if the penalty amount is less than the total reported trip cost, said Dan Skilken, president of TripInsurance.com.

But no matter what you buy, “cancel for any reason” travel insurance can be expensive. Is there a way to save money? There may be.

Is there an alternative to “cancel for any reason” my travel insurance?

Probably, say experts. Thomas Carpenter, co-owner of Huckleberry Travel, said most “cancel for any reason” policies offered by travel insurance companies are “incredibly expensive” when added on to third-party insurance. talk.

“In my opinion, this is not a very good amount because insurance companies only pay 50% to 75% of non-refundable travel costs,” he says.

Additionally, most third-party policies already include cancellation coverage for covered reasons, such as if you become ill or a death in the family occurs.

“However, if you want to cancel for reasons such as your hair not feeling well, it is unlikely that you will receive a full refund for your trip, even if you have 'cancellation for any reason' coverage,” he says. Point out. .

Instead, a portion of the trip cost will be refunded.

Carpenter says there's a better way. Travel protection insurance from travel agencies, airlines, and cruise lines often offers “cancellation for any reason” coverage at a low price.

“It is important to note that in some cases, coverage may be conditional on having the value of your trip returned to you in the form of future travel credits. , it is not comprehensive insurance and may not cover emergencies such as “medical care, medical evacuation, travel delays, trip interruptions, lost or stolen luggage, personal effects, etc.” added.

So you can save some money, but there are also trade-offs. Make sure your tour operator or cruise line is in good financial standing before you press the button on this option, as insurance offered through your provider will not necessarily cover bankruptcy.

“Cancel for any reason” purchase advice: Please remember to follow the rules below.

Whatever you do, here are some rules to follow when considering “cancel for any reason” insurance.

“Rule No. 1: Buy early, and buy with your first trip payment, especially in the case of a 'cancel for any reason,'” advises Lisa Conway, chief insurance officer at Battleface. .

If you insure the entire trip and make additional arrangements at a later date, be sure to add them to your insurance. (I have seen travel insurance companies deny claims based on this requirement.)

Conway also says you should cancel and file a claim immediately.

“You have to do this within a certain period of time, usually 48 hours before the travel start date listed on your policy,” she says.

And finally, you should carefully read the travel insurance policy you are considering. Then try reading it again. This is the advice of his CEO of AirAdvisor, Anthony Radchenko.

“You need to thoroughly understand what is covered, reimbursement percentages, coverage limitations, exclusions, and the time period within which you must file a claim,” he says.

Otherwise, you could end up overpaying for coverage you don't need or receiving coverage you don't have access to.