Cancel for Any Reason Travel Insurance: 5 Myths and Truths

Posted on: Jun 15, 2022 | | Written by:

Cancel for Any Reason Travel Insurance: 5 Myths and Truths

Most of us, at some point or the other, have cancelled plans due to genuine and valid reasons. If it is a road trip and you just need to cancel your hotel bookings, it might not seem to be a big issue. However, if you have planned an international trip and you have to cancel it at the last minute, things can get a bit tricky and expensive, to say the least. This is one of the primary reasons to buy a travel insurance cover. After a couple of years of travel restrictions, a lot of countries are opening their borders to travellers and visitors. However, the equation has changed a lot since the onset of the pandemic. Even though the borders are now open, there is always an air of uncertainty. Buying international travel insurance cover is not a luxury anymore, rather it is the need of the hour. In fact, data shows that people have purchased travel insurance cover in record numbers in the last couple of years. Some websites offering travel insurance have reported approximately 300% more policies being sold in 2021 as compared to 2020. And approximately 70% more than in 2019. It all comes down to ever-changing rules and regulations. There have been a huge number of flight or cruise cancellations or delays in the last couple of years as well. Travellers are now seriously considering the purchase of cancel for any reason travel insurance for their next trip. Should you opt to cancel for any reason travel insurance cover? Are they reliable and affordable? And would they suit your needs? But primarily, there are a few myths surrounding the policy. Here are all the details about these myths.

1. You can exercise your cancel for any reason, at any time you wish

At the end of the day, cancelling for any reason is an insurance policy and there are exceptions. There is no doubt that cancel for any reason policy offers more comprehensive coverage than standard travel insurance, it still has a few exceptions. Going through the exclusion list for the policy might be your best bet to avoid any rejection of claims. There are a few insurance policies that do not offer a refund if the tour operator cancels the trip. This is because the refunds are usually offered by the tour operators. Similarly, most policies require you to purchase the policy and cancel it within a specified time period. Some of the insurance policies might offer a refund for the trip if you cancel within a certain number of days before the trip begins. The exact clauses of cancel for any reason policy majorly depends on the insurance provider. Thus, it is of utmost importance to go through the policy documents and the exclusion list.

2. Cancel for any reason policies are utterly expensive

The cost of cancel for any reason policy depends on your budget and the style of the trip that you have planned. On average, cancel for any reason policies cost 40-50% more than a standard policy. A lot of travellers do not mind opting for the cancel for any reason policy by paying an additional premium. The personal situation of some individuals might make them a bit more prone to cancel their trips. In such cases, the slightly higher premiums offer complete peace of mind. However, on the other hand, a few travellers might find the policy to be expensive and not worth it. Considering that some of the cancel for any reason policies now offer health coverage, it does build a much stronger case for itself.

3. Only cancel for any reason policies cover Covid-19-related cancellations

This is not entirely true. A lot of the newer products now offer coverage for cancellations pertaining to Covid-19. In fact, insurance providers have tweaked a lot of the older policies to accommodate Covid-19-related cancellations as well. Insurance providers have tweaked the standard policies to accommodate interruptions or cancellations due to pandemics, medical emergencies and denial of boarding due to suspected illness. Travellers usually find the medical-only travel insurance to be a cheaper alternative and it does offer an option to cancel trips if they have contracted Covid-19. However, the coverage might not be extensive and will not cover for cancellation of a trip, if you are afraid of contracting the virus. That is only feasible with cancel for any reason policy.

4. Cancel for any reason covers the entire trip cost

Cancel for any reason policies usually cover up to 75% of the trip expenses. And some policies are known to cover only 50% of the initial booking amount. Thus, you must assess a standard travel insurance cover and cancel for any reason policy and choose the one that makes more financial sense. In some cases, a standard policy might meet your requirements at a lower premium.

5. Pet is sick

A few travellers have had to cancel their trips, since their pets had a serious illness. In such cases, a cancel for any reason policy does offer refunds. Depending on the policy wordings, you might receive refunds of up to 75% of the initial booking cost. As per the policy wordings, personal reasons such as your dog being sick do qualify as a genuine reason for trip cancellation. However, the same is not possible with a standard travel insurance cover. Thus, such instances won’t force you to lose a lot of money, if you have a cancel for any reason policy. There have been a lot of logistical issues due to the ongoing pandemic. A lot of flights and cruises have been cancelled across the globe and it is usually the travellers that end up losing money and precious peace of mind over such issues. Though a regular travel insurance cover is enough in a lot of cases, it just does not offer the benefits that a cancel for any reason policy does. Thus, a lot of travellers are not opting to cancel for any reason insurance policies. This offers the coverage of a standard policy and gives them a lot of additional perks. For instance, they can now cancel their trips merely out of caution, or fear of contracting the virus or in some cases even other personal reasons that are not related to illness or accident. For your next trip, it is advisable that you assess a travel insurance cover and cancel for any reason policy and pick one that would make your trip a little less stressful.

Disclaimer: The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before concluding the sales.

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