The Difference Between Trip Cancellation and Trip Interruption Insurance

A Trip Cancellation benefit can provide coverage for nonrefundable, prepaid trip expenses after canceling a trip for a covered reason. A Trip Cancellation benefit applies specifically to a trip that is canceled before you depart. This may mean an emergency has taken place prior to your departure which leads you to cancel the trip, like a hurricane striking your destination or a sudden illness.

Review the following examples to see what may and may not be covered by your Trip Cancellation benefit.

Below are several scenarios that are frequently excluded from cancellation coverage. It’s important to understand that your reason for canceling a trip must be listed as a covered reason in your policy documents. 

• You purchase travel insurance after a hurricane has been named and predicted to impact the location. Make sure to check the National Hurricane Center for potential hurricanes, especially if they are frequent at your destination. Your Trip cancellation benefit will probably not cover your trip cancellation if you purchase your policy after a hurricane has been named.
  
  

  Learn more about traveling during the hurricane season and how to keep yourself and your travel companions safe.

• You cancel your trip and then purchase a travel insurance policy. Add “purchase travel insurance” to your trip planning to-do list. You won’t be covered for lost expenses if you purchase a policy after you cancel your trip.
  
  
• You decide to cancel your trip because of cold feet. It’s understandable to get nervous about travel, especially if you don’t do it frequently. However, your Trip Cancellation benefit can only provide coverage for covered reasons listed in your policy documents. Make sure to read those covered reasons carefully before purchasing.

While a Trip Cancellation benefit can cover the cost of a trip canceled before it has begun, a Trip Interruption benefit may be used once the trip has already started. If you end your trip early for a covered reason, the Trip Interruption benefit can cover your unused and nonrefundable trip expenses.

There are many scenarios that are typically excluded from interruption coverage. A couple examples are listed below. Note that your reason for ending a trip early must be listed as a covered reason for interruption in your policy documents. 

• You end your trip early because of homesickness. During your trip abroad you experience homesickness and decide to head home early. You likely will not be covered for unused trip expenses, as homesickness is not typically a covered reason for interruption.
  
  
• You aren’t 100% satisfied with your accommodations when you arrive, so you book reservations for somewhere else. You thought you got a good deal on your hotel, but it doesn’t turn out like you thought. You decide to cancel and book a different hotel. This is usually not a covered reason for trip interruption. 

PRO TIP: Remember that every travel insurance plan has its own benefits, limits, conditions, and exclusions. Don’t assume all plans are the same. Review the policy documents for any plan you’re considering and make sure you understand what is and isn’t covered.

They might, or they might not. Every hotel, airline, tour company, and amusement park has a different cancellation policy.

Even if your travel provider offers some cancellation flexibility, there’s a chance you may not receive a refund if you cancel too late. For example, canceling a flight the night before could mean you don’t get a refund for your ticket. U.S. airlines are not required to issue refunds to travelers who cancel their trip.

Also, many amusement parks and tours exclusively offer nonrefundable tickets for their experiences.

You may purchase your flight tickets, make hotel reservations, or book a rental car through a third-party travel vendor like Expedia, Kayak, or Hotwire. These vendors can make it easier to book and could feature cheaper prices.

However, these third-party vendors may only allow refunded cancellations within 24 hours of purchase or before a certain deadline. Missing deadlines or purchasing nonrefundable tickets could mean you won’t receive a refund for your trip purchase without a travel insurance plan. 

You can get coverage for trip cancellation and trip interruption with a travel insurance plan like Atlas Journey. Atlas Journey is a comprehensive and customizable travel insurance plan offering three different coverage options: Elevate, Explore, and Escape.

You can add one or more of the following upgrades to your Atlas Journey trip cancellation plan to customize and enhance your coverage. Note that upgrade availability varies by plan level and may vary by state of residency.

• Cancel for Any Reason – Reimbursement for up to 50% or 75% of your nonrefundable, prepaid expenses if you cancel for a noncovered reason
  
  
• Interrupt for Any Reason – Adds interruption coverage for a non-covered reason
  
  
• Adventure Sports – Extends coverage to include sports such as safari, bungee jumping, hang gliding, & more
  
  
• Rental Car Damage and Theft – Adds collision damage waiver and coverage for theft of rental vehicle
  
  
• Medical Evacuation – Doubles medical evacuation coverage and offers evacuation to hospital of your choice
  
  
• Pet Care – Adds cancellation coverage for the death or critical illness of your dog or cat and vet care if they are traveling with you