You prepay your airfare. You prepay your destination resort. And then to make sure your investment is covered, you buy trip interruption of cancellation insurance. Then at the last minute you decide you just don’t feel like going, so you cancel your trip and expect the insurer to recoup your payouts. But it doesn’t work that way.
Trip cancellation coverage is designed to cover the unexpected, the circumstances beyond your control: you or your travel companion becomes ill and can’t travel, a death in your immediate family or that of your companion; one of you is being transferred by your employer, your carrier can’t get you to your destination because of weather or earthquake and you would lose at least 30 percent of your vacation time, you’ve been called to jury duty, the Canadian government has issued a formal written warning against traveling to your destination, the destination to which you are heading is blown away in a hurricane. One major insurer lists 42scenArios under which your trip cancellation benefit would kick in. But not one for simply changing your mind about traveling. Also note that if you do cancel because of illness, and that illness is the result of a medical condition that pre-existed your purchase of cancellation insurance, you likely won’t be covered either. And that goes for your traveling partner too. Sounds bizarre? It happens. That’s why you must peruse trip cancellation insurance very carefully before you count on it to protect your pre-paid trips.