Why You Should Buy Trip Cancellation Insurance

You’ve just booked the trip of your dreams and you’ve invested a substantial deposit and the trip is set for six months from now. But, what happens if something unforeseen happens in those six months and you suddenly are unable to make that trip? You will lose your entire deposit.

Most package tours, charters and other trips of that nature not only require substantial deposits up front, but they usually have a forfeiture clause in them which prevents you from getting any monies back if you are not able to take your trip as planned.

Trip Cancellation Insurance will often cover the following:

A)Illness/Injury/Death 

• Let’s assume that you get a critical illness thirty days before you’re scheduled to leave on your dream vacation and your doctor tells you that you will not be able to make the trip.  Most trip insurance policies will allow you to be reimbursed at the level of your deposit in the event you need to cancel your trip.
• If you, or your traveling companion suddenly die (and in some cases this may extend to partners in your business, your companions business, family members) your family would be able to be reimbursed the full amount of your deposit
• If you become ill and you can prove that the illness is not as a result of a pre-existing condition (that is a condition that existed prior to purchase of trip cancellation insurance) you should be able to be reimbursed for your deposit

B)Operator Failure

In an economy where businesses are closing, unemployment rates are at record highs, it is not unusual to hear about a business failing. What happens if the tour company fails before you are able to make your trip and they have your deposit?

• Some trip insurance will guarantee that if the operator fails to perform under the terms of your agreement the insurance will cover you for hotel vouchers or for airline tickets that have become worthless.
• This insurance may not apply if you purchase the insurance from the same agency that is now failed so use caution!