Does travel insurance cover canceled trips?

  • June 21, 2022
Does travel insurance cover canceled trips?

Does travel insurance cover canceled trips? The short answer, according to experts, is it depends on the policy and the situation.

In 2020 and 2021, BBB received thousands of complaints related to travel insurance, many of which occurred because the policy didn’t cover the cancellation caused by the coronavirus and/or travel bans to certain areas. According to the U.S. Travel Insurance Association, the cancellation of a trip out of fear of traveling or in relation to travel advisories is not typically covered by these insurance policies.

However, travelers who purchased policies that include Cancel For Any Reason (CFAR) coverage may still have the option to recoup funds. Pandemics are often routinely listed as exclusions in policies, so read the fine print. In addition, travelers may also contact the airlines and other travel suppliers before filing a claim to see if there are refunds, waivers, or other accommodations offered through those companies. 

When thinking about purchasing travel insurance, consider these tips:

  • Travel insurance is intended to help with unexpected events, not things like forecasted hurricanes. Once an event is a "known event," meaning it's been forecasted or anticipated, it may not be considered a covered reason for cancellation if a traveler books a trip after that date.
  • Policies vary. Before purchasing a policy or trying to file a claim, read the specifics on what the policy does and doesn't cover. Contact the insurance company directly with questions.
  • Read the fine print. If CFAR was purchased, confirm the specific policy wording for all details regarding this benefit before filing a claim.
  • Be flexible with travel plans. Dates, times and arrangements can change at any given time. Make plans, but leave room for the unexpected.

Be aware of travel warnings issued by the U.S. State Department and Canadian Travel Advisories. Visit BBB.org to research companies that offer travel insurance.

Ensure that the agency you choose adheres to BBB's Standards for Trust. 

Find travel insurance companies near you.