Trip Insurance: Trip Delay Vs. Trip Interruption Vs. Trip Cancellation Coverage

Trip Insurance: Trip Delay Vs. Trip Interruption Vs. Trip Cancellation Coverage

When preparing to embark on your dream vacation, it is important to keep in mind that unforeseen events and mishaps that could lead to financial burden can arise at any time during your travels. Because of this possibility, it is always better to be safe than sorry and take the necessary precautions to protect your investments along the way. Trip insurance ensures the coverage of non-refundable costs associated with your travel plans. When it comes to trip insurance, there are three key coverage’s that carry many misconceptions: trip delay, trip interruption, and trip cancellation, and it is extremely important to understand the differences between them in order to avoid any confusion down the road.

>> Trip Delay

Trip delay is when a traveler encounters a situation in which their departure or return is delayed by an uncontrollable force. For example, let’s say that you are headed to Europe for an extended vacation and a snowstorm rolls in during your short layover in Canada, causing your final flight to Europe to be delayed indefinitely. This situation would be considered trip delay and having coverage for this would provide you with reimbursement for additional meal and hotel expenses incurred due to the delay up to the covered amount listed in the policy documents.

>> Trip Interruption

Trip interruption is when a traveler encounters a situation in which they must end their trip for an unforeseen reason. For example, lets say you are taking a two-week long vacation in Europe and within the first few days, a large earthquake occurs, leaving you with no other option but to leave the country and return home immediately. This situation would be considered trip interruption and having coverage for this would ensure reimbursement up to the covered amount for non-refundable, unused travel expenses that you are forced to forfeit due to the interruption of plans.

>> Trip Cancellation

Trip cancellation is when a traveler encounters a situation in which they must cancel their trip completely, before having even embarked on it. An example of this would be if you planned an elaborate trip to Europe in which you prepaid for all airline tickets and hotel stays, but just three days before, you fell violently ill and had to cancel your travel plans all together. This would be considered trip cancellation and having coverage for this would provide you reimbursement for all non-refundable travel expenses for an unforeseen and covered event.

>> Things to Keep in Mind While Filing Claims

Should you need to file a claim for a trip related mishap such as the ones listed above, it is especially important to keep these misconceptions in mind and be able to fully understand the differences between the trip insurance coverage’s. Filing a claim under the wrong terminology can easily result in the insurance company denying the claim, possibly leaving you with a large financial loss and frustration after the fact. It is also important to keep in mind that each trip insurance plan has different coverage amounts for trip delay, trip cancellation, and trip interruption and it is important to know how much coverage is offered under your particular policy to avoid any surprises when filing your claim and receiving any reimbursements. If a mishap arises during your travels and when filing your claim, you are unsure of which terminology applies, it is highly recommended that you contact your insurance company to clear up any unanswered questions before submission.

While anything can happen while traveling abroad, you can always protect yourself from financial loss by purchasing a trip insurance policy before embarking on your next adventure.