Trip cancellation coverage and trip interruption coverage are the two notable coverages in the travel insurance plans. While both coverages are important, there are several differences between trip cancellation coverage vs trip interruption coverage.
Trip Cancellation Coverage
Trip cancellation coverage offers reimbursement for prepaid, non-refundable expenses such as flights, hotels, tours, and other travel services if your trip is canceled for a covered reason like illness, severe weather, or a family emergency. This coverage is vital because it protects against financial losses even before your departure date. It becomes effective immediately after purchase and remains active until you begin your trip. This ensures that any unexpected issues preventing your departure are covered. However, once the trip starts, the cancellation coverage ends, as the policy shifts to cover trip interruptions instead. It's important to note that even if your itinerary involves multiple stops or destinations, it is considered one continuous trip starting from the moment you leave your home. Reviewing the policy’s terms can help you understand the range of situations that qualify as covered reasons for cancellation.
Trip Interruption Coverage
Trip interruption coverage activates after your scheduled departure, providing financial support if you need to return home early or adjust your plans due to covered reasons such as illness, injury, or natural disasters. This coverage can help with costs associated with new travel arrangements, such as booking last-minute flights, additional transportation, or emergency accommodations. Some plans may also include provisions allowing you to rejoin your trip later if you missed a scheduled departure for a covered reason, ensuring flexibility. Additionally, trip interruption coverage may reimburse for unused portions of prepaid expenses for the remainder of your trip. It’s crucial to understand your policy's details, as covered reasons may include medical emergencies, mandatory evacuations, terrorism incidents, or even mandatory quarantines, all of which could disrupt your plans unexpectedly. Checking the specific terms ensures that you are aware of the protection offered and any limitations in place.
What is the Difference Between Trip Interruption and Trip Cancellation Insurance?
Both trip interruption insurance and trip cancellation insurance are integral parts of most travel insurance plans. The easy way to remember the difference between trip interruption and trip cancellation insurance is this: trip cancellation insurance is before your trip starts, and trip interruption insurance is for after your trip has begun.
Trip cancellation insurance is designed to insure your prepaid, nonrefundable travel expenses prior to your trip beginning, whereas trip interruption insurance is tailored towards protecting you from additional costs if your trip must unexpectedly be interrupted, requiring you to travel home early.
Covered Amounts
With trip cancellation insurance, you are covered for both trip cancellation as well as trip interruption. The coverage amount is based on the trip cost.
However, in travel medical insurance, there is no trip cancellation coverage. Also, the trip interruption coverage is a flat amount, such as $1,000, $5,000, or no coverage at all in some travel medical plans.
Multi trip travel insurance plans don't provide trip cancellation coverage but they do provide the trip interruption coverage.
Covered Reasons
Typically, the covered reasons for trip cancellation as well as trip interruption are the same. However, the exact reasons vary by the specific insurance plan you purchase. Make sure to read the certificate wording thoroughly to understand what events are covered.
Commonly included reasons are you, your traveling companion or a close family member unexpectedly become sick or are injured just before your trip, your travel supplier unexpectedly ceases operations, jury duty, lay off, terrorism, bad weather, hurricanes or natural disasters.
How do I get Trip Interruption Insurance?
Purchasing trip interruption insurance is simple. To get trip interruption insurance, just visit the travel insurance quote form, enter your information, and compare multiple plans side by side to see which one is the perfect fit for you. Nearly all travel insurance plans include trip interruption coverage, so all that’s left is to choose your plan and purchase!
Conclusion
In short, trip cancellation coverage provides coverage for the money you would lose, while trip interruption coverage provides payment for the additional money for covered reasons you would have to spend to return home or resume your trip.
Can't find answers to your questions?
Ask our specialists - Licensed and experienced insurance professionals in the U.S.