Travel insurance cancellation cover explained

Holidays are meant to be stress-free, but sometimes plans change. Travel insurance with cancellation cover helps you avoid losing money if you have to cancel a trip unexpectedly.

In this guide, we’ll break down exactly what cancellation cover is, what it protects you against, and how to make a claim – giving you peace of mind before you book.

What is travel insurance cancellation cover?

Travel insurance cancellation cover protects the money you’ve already spent on your trip — like flights, hotels, and tours — if you have to cancel for an unexpected reason. Most standard travel insurance policies include this cover, so you usually don’t need to buy it separately.

It’s designed for situations beyond your control, such as illness, a family emergency, or serious problems at home. However, it won’t cover you if you simply change your mind or decide not to go – it’s for genuine, unforeseen events.

When does travel insurance cover holiday cancellations?

Travel insurance can help you get your money back if your trip is cancelled for a serious, unexpected reason – something completely out of your control.

Common examples include:

• Illness or injury to you or a close family member

• Death of someone close to you

• Unexpected job loss

• Jury service

• Home damage from fire, flood, or burglary

The key thing is that the reason must be unforeseen and beyond your control.

Some policies offer ‘cancel for any reason’ cover, which lets you claim even if you simply change your mind. These are usually more expensive and aren’t generally included in standard travel insurance.

What doesn't travel insurance cancellation insurance cover?

Cancellation cover protects you from many unexpected issues, but there are some situations it won’t cover. Knowing these upfront can help avoid surprises.

Common exclusions include:

• Changing your mind and deciding you don’t want to travel

• Pre-existing medical conditions you didn’t declare when buying the policy

• Flight cancellations or delays caused by the airline (your airline is responsible – see our guide on travel cancellation rights)

• Known issues at the time you bought the insurance

• Policy excess (the amount you pay yourself before insurance applies)

Every policy has limits and exclusions, so it’s worth checking the details before you buy. That way, you know exactly what’s covered, and what isn’t.

Does cancellation cover apply to everyone on a policy?

Cancellation cover usually applies per person, even if you’ve bought a family or group travel insurance policy. This means each person named on the policy has their own cover limit.

For example, if two people on the same policy need to cancel due to illness, each can claim separately for their own costs. However, some insurers may set one total limit for the whole group, so it’s important to check your policy wording before you travel.

Understanding how your cover works upfront can save confusion if you ever need to make a claim.

How to make a travel insurance cancellation claim

If you need to cancel your trip, acting quickly can make the claims process smoother. Here’s a simple step-by-step guide:

• Contact your insurer as soon as possible. Explain why you need to cancel and ask what documents they require.

• Gather your evidence. This could include medical letters, a jury duty notice, proof of redundancy, or any documentation that supports your claim.

• Keep copies of everything. Save emails, receipts, and any confirmation letters – you’ll likely need to share them with your insurer.

The more information you provide upfront, the faster your travel insurance cancellation claim can be processed.

When should you buy travel insurance cancellation cover?

To get the most protection, it’s best to buy travel insurance cancellation cover as soon as you book your trip.

Cancellation cover usually takes effect from the moment you purchase your policy, so you’re protected straight away against unexpected events before your departure. If you wait until closer to your travel date, any problems that occur before your policy starts won’t be covered.

Once your flights or accommodation are confirmed, that’s the perfect time to arrange your insurance. It’s a small step that can save you money and stress if plans suddenly change.

How to find the right travel insurance cancellation policy

A great place to start is with our travel insurance comparison tool, which lets you compare a range of policies in one place. You can see what each policy includes and how costs differ, helping you find the right level of cover for your trip.

When comparing policies, keep these points in mind:

• Check the cancellation limit – this is the maximum your insurer will pay if you have to cancel. Make sure it covers the total cost of your holiday, including flights, hotels, and any other bookings you’ve already paid for.

• Consider cancellation-only policies – some insurers offer policies that focus specifically on covering the cost of cancelling your trip. These can be a good option if that’s the main protection you need.

Taking a few minutes to compare policies ensures you choose the right cover for your plans and know exactly what’s included before you buy. It’s a small step that can save money and stress if you ever need to cancel.