What is Travel Insurance Cancellation Cover?

Trip cancellation cover is a travel insurance benefit. This benefit provides protection against trip cancellation and holiday curtailment. If your trip is cancelled due to a covered reason, you can get cover with trip cancellation cover.

Does Travel Insurance Cover Trip Cancellation?

Travel insurance cover is included under the Essentials and Comprehensive policies. Travel insurance cover is not included on the Medical Only policy. There are a number of covered reasons included under the Trip Cancellation and Holiday Curtailment benefits.

What does Travel Insurance Trip Cancellation Cover?

Trip cancellation coverage typically includes the following:

Accidental serious injury, serious illness, or death of you, your relative, your traveling companion, your business colleague, or person with whom you intend to stay at the trip destination.
Medical complications related to pregnancy.
Your receipt of a summons for jury service, being subpoenaed as a court witness, or being placed in compulsory quarantine.
Your unexpected requirement for emergency and unavoidable duty as a member of the armed forces, police, fire, nursing, ambulance, or coastguard services resulting in the cancellation of previously agreed leave.

More of what travel insurance cancellation cover can do:

Your redundancy.
Your presence being required to make your property safe and secure following a fire, flood, or burglary that causes serious damage to your home occurring within 48 hours of departure or whilst you are away.
A government regulation following a natural disaster that stops you from traveling.
A Level 4 warning (“do not travel”) issued by the Australian Government on the www.smartraveller.gov.au website advising against travel to or through a country that forms a major part of your itinerary or prevention of access by the government of the country in question.

Remember: It’s crucial to read the policy wording carefully to understand the specific inclusions and exclusions of your chosen travel insurance plan.

How much cancellation cover do I need?

The benefit limit of cancellation cover you require depends on your individual trip details and needs. If you are travelling to Bali for a week you may not require as high a cancellation limit as if you were travelling around Europe for 6 months on a cruise. The Essentials policy offers $10,000 cancellation cover per person, and the Comprehensive offers $20,000 cancellation cover per person.

Cruise Cover Travel Insurance: Cancellation and more:

Cruise cover travel insurance typically includes the following on an Essentials or Comprehensive policy, some benefits relate to cancellation such as ‘cruise cabin confinement’:

Trip Cancellation: Reimburses you for prepaid, non-refundable trip costs if you must cancel your cruise due to covered reasons like illness or injury.
Trip Interruption: Covers the unused portion of your cruise if you must return home early due to a covered event, such as a family emergency or natural disaster at home.
Cruise Cabin Confinement: Cover if for medical reasons you are confined to your cruise cabin.
Prepaid Shore Excursion Cancellation: Cover for any prepaid shore excursion you may miss as a result of your confinement to cabin or hospital for medical reasons.
Missed Port Coverage: Compensates you for missed prepaid shore excursions if your ship cannot dock at a scheduled port due to unforeseen circumstances.

Choosing the right cruise cover:

When selecting cruise cover travel insurance, consider the following factors:

Cruise Itinerary: Ensure the policy covers the specific destinations and activities included in your cruise itinerary.
Coverage Limits: Choose coverage limits that adequately protect your trip investment, including the cost of the cruise, airfare, and prepaid excursions.
Pre-Existing Conditions: If you have any pre-existing medical conditions, check if the policy offers coverage or if a waiver is available.
Optional Extras: Consider additional coverage options like COVID-19 protection or adventure activities coverage if needed.

By carefully reviewing your needs and comparing policies, you can find the right cruise cover travel insurance to ensure a worry-free and enjoyable vacation at sea.

Common reasons for trip cancellation covered by travel insurance

1. Medical Emergencies

Personal Illness or Injury: If you become seriously ill or injured before your trip and a doctor confirms you’re unfit to travel, you can claim cancellation coverage.
Family Emergency: If a close family member falls seriously ill, requiring hospitalization or leading to their death, you may be covered to cancel your trip.

2. Travel Companion Issues

If your travel companion experiences a medical emergency or has a death in their immediate family, necessitating trip cancellation, your policy may cover the losses.

3. Home and Property Emergencies

Significant Damage: If your home suffers severe damage from events like a fire or flood shortly before your departure, requiring your presence, you may be eligible for cancellation coverage.

4. Legal Obligations

Jury Duty: Being unexpectedly called for jury duty can disrupt your travel plans. Cancellation insurance can cover losses if you have to cancel your trip due to this obligation.

5. Job Loss

Redundancy: Some policies cover trip cancellation due to unexpected job loss or redundancy.

How to Choose the Right Cancellation Coverage

1. Assess Your Needs:

Consider your health condition, travel destination, and the overall value of your trip.

2. Compare Policies:

Look for policies that offer comprehensive coverage for various cancellation reasons, including medical emergencies, family emergencies, and travel advisories.

3. Check the Schedule of Cover:

Pay attention to the maximum coverage limits for cancellation, ensuring they adequately cover your prepaid trip costs.

4. Understand the Exclusions:

Familiarize yourself with the policy’s exclusions, such as pre-existing medical conditions, cancellations due to change of mind, or specific activities without optional extra cover.

5. Look for Additional Benefits:

Some benefits may automatically included, such as cruise cover, whereas other optional extras, such as mountaineering cover or snow sports cover, require optional extra cover.

What is Holiday Curtailment? Trip interruption cover:

Holiday curtailment, also known as trip interruption coverage, reimburses you for the unused portion of your trip if you must return home early due to covered reasons. These reasons typically mirror those for trip cancellation, such as a Level 4 government warning preventing you from travelling, or an illness or injury.

Travel Delay

Travel delay benefits can compensate you for additional expenses incurred due to covered delays, such as flight cancellations or missed connections. This coverage typically includes accommodation, meals, and transportation expenses.

Domestic Travel Protection

Even domestic trips can face unexpected disruptions. Domestic travel insurance offers similar coverage to international policies, protecting your trip investment from cancellations, delays, and cruise cover within your home country.

FAQs: Travel Insurance Cancellation Cover

What is the Period of Insurance?

The Period of Insurance is the duration for which your travel insurance policy is valid, typically starting from the policy’s purchase date until your trip’s scheduled return date, whereby you return back at your home in Australia.

What are General Exclusions?

Specific events or circumstances, known as general exclusions, are not covered by your travel insurance policy. Common exclusions include:

Pre-existing medical conditions (unless approved through screening).
Cancellations due to fear of travel.
Extreme sports or hazardous activities.
Losses due to intoxication or illegal activities.

What is a Level 4 Warning?

The Australian Government issues a Level 4 warning as a travel advisory, advising against all travel to a specific country or region due to significant risks like natural disasters, civil unrest, or health emergencies.

What events are covered by cancellation cover?

Trip cancellation insurance reimburses you for prepaid, non-refundable trip costs if you must cancel your trip for covered reasons. These reasons typically include illness or injury, death of a family member, natural disasters, and government travel advisories.

How to claim trip cancellation insurance for a family emergency?

To claim trip cancellation insurance for a family emergency, you must notify your insurance provider and provide documentation such as your policy, trip cancellation confirmation, and any relevant medical records (refer to ‘How to file a travel insurance claim’ above).

Does travel insurance cover cancellation due to jury duty?

Yes, if you are subpoenaed for jury duty service then the cancellation or trip curtailment benefits outlined under Travel Insurance Hub may provide cover.

Can I get trip cancellation insurance for a pre-existing condition?

If you have a pre-existing medical condition and it has been approved for cover following a medical screening (during quote process), then you may be covered for cancellation of trip in relation to your pre-existing medical condition.

What is the best trip cancellation insurance for seniors?

The best trip cancellation travel insurance for seniors depends on the individual traveller. Senior travellers may be covered up to $20,000 per listed traveller for cancellation and holiday curtailment under the Comprehensive policy.

Is trip cancellation insurance mandatory for international travel?

Trip cancellation is not mandatory; however, it is included under the Essentials policy and the Comprehensive policy up to the applicable limits. If you do not need trip cancellation cover and only require cover for medical expenses, such as on a trip with low-prepaid travel arrangement costs, you may select a Medical Only policy.

How far in advance should I purchase trip cancellation insurance?

Cover for trip cancellation begins when a traveller purchases their travel insurance policy, or books their prepaid travel arrangements, whatever happens last.

Can I cancel my trip for any reason with travel insurance?

No, cancelling for ‘any reason’ is not covered under the travel insurance policies available. To be covered for an unforeseen event it must be listed as a covered event under the ‘Cancellation Fees, Lost Deposits, and Curtailment’ section.

Cancellation Cover Travel Insurance Hub Overview (2025)