The ins and outs of trip cancellation travel insurance

With the right policy, trip cancellation travel insurance can turn your bad luck right around when you understand how it can help you in an emergency. Here are some ins and outs of travel insurance worth knowing.

The first thing to understand about trip cancellation travel insurance is how and when it protects you if you are unable to take a trip as planned. In that event, you may be eligible for a refund on travel expenses, including airline tickets or a booked cruise, if you meet the cancellation criteria outlined in your contract.

Potentially acceptable cancellation criteria may include:

• The trip is cancelled due to a natural disaster
• You receive a subpoena to appear in court
• You are let go from your job
• You are rejected for a travel visa to the country you intended to visit.

The trip could also possibly be reimbursed if you have to cancel because you, one of the people you were booked to travel with, or an immediate family member passes away, gets sick or is seriously injured.

Trip cancellation travel insurance usually includes coverage that kicks in after your journey begins, known as trip interruption insurance.

• If you have to cancel part of your trip and return home earlier than expected due to one of the unexpected events listed above, the expenses will likely be covered.
• If you miss a connecting flight during your trip or miss your flight home, there's a chance it will also be covered under the plan.

You can buy trip cancellation travel insurance to cover a single trip or purchase a plan that will apply to all trips you make for a full year.

• If you travel often, even within Canada, the annual plan might be a better choice.

Before buying a policy, it's vital to understand that trip cancellation travel insurance plans may differ. Take the time to learn about the benefits offered by the airline, travel agency, insurance agency or other businesses selling such policies.

Bear in mind the insurance company will require proof of your reason for cancelling in order to assess and potentially fulfill your insurance claims. That means if you're too ill to travel, for example, you'll require a note from the doctor. As such, you should keep documents to back your claims for travel expenses at the ready, including receipts and tickets, should they be needed in an emergency.