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Trip Cancellation Insurance

Life happens. Trip cancellation coverage can help protect your prepaid, non‑refundable travel costs if you need to cancel for a covered reason.

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Reimbursement for covered cancellations Helps recover eligible prepaid expenses like tours, hotels, and transportation.
Coverage varies by plan Covered reasons, limits, and exclusions depend on the policy you choose.
Policy documents matter Always review the plan wording for definitions, deadlines, and required proof.
Trip protection

What is trip cancellation insurance?

Trip cancellation insurance is designed to help reimburse eligible prepaid, non‑refundable trip costs when you have to cancel before departure for a covered reason. It’s most useful when you’ve already paid for travel components that may have strict cancellation penalties.

Benefits

What it can cover (examples)

Depending on the plan, trip cancellation benefits may help reimburse eligible non‑refundable expenses such as:

  • Prepaid hotel nights and deposits
  • Prepaid tours, activities, and event tickets
  • Prepaid transportation arranged as part of your itinerary
  • Change or cancellation penalties charged by travel suppliers

Many plans also include related benefits (for example: trip interruption, delay, baggage, or emergency medical), but those are separate coverages with their own rules.

Eligibility

Common covered reasons (varies by plan)

Covered reasons are specific and differ from one plan to another. Examples often include:

  • Unexpected illness or injury of the traveler (or in some cases, a family member)
  • Severe weather that prevents travel
  • Carrier issues that cause you to miss departure (subject to policy terms)
  • Jury duty, subpoena, or certain work obligations (if included by the plan)
“Any reason” is typically not covered unless you purchase an optional upgrade (Called CFAR / Cancel For Any Reason), which may have deadlines.
Exclusions

What we don’t cover

Exclusions and limitations depend on the policy, but the items below are commonly not covered (or only covered with special add‑ons and strict conditions). Always confirm in the policy wording.

  • Medical exclusions: Pre‑existing conditions, elective surgeries, and medical tourism.
  • Trip cancellation/interruption reasons: Change of mind, fear of travel, disinclination to travel, or if a refund/voucher was provided by the travel supplier.
  • Foreseeable events: Storms or natural disasters that were named or known before purchasing the policy.
  • High‑risk activities: Skydiving, hang gliding, or similar extreme sports, unless special coverage is added.
  • Illegal/intentional acts: Losses resulting from illegal acts or self‑inflicted injuries.
  • Specific locations: Trips to countries sanctioned by the U.S. or other authorities.
  • Financial default: Specific carriers may not be covered if not purchased within a certain timeframe.
  • Domestic flights: They form the non‑refundable part of your trip.
Process

How trip cancellation coverage works

While details vary by insurer, most claims follow a similar flow:

1

Buy early (when possible)

Some time‑sensitive benefits require purchase within a set window after your first trip payment.

2

Save documentation

Keep invoices, receipts, cancellation penalties, and any required medical or official proof.

3

Cancel with suppliers promptly

Notify the airline/hotel/tour operator and request written confirmation of refunds and penalties.

4

File the claim

Submit the insurer’s claim form and supporting documents by the stated deadline.

Refunds

Refund Schedule

If you must cancel your trip for a covered reason, the refund amount is calculated based on the “refundable portion” of your payment and the timing of your claim within the 30/45 days before your trip start:

For Normal dates requiring 30 days :

Cancellation Window Refund Amount
29 – 15 Days before trip start 100% of the refundable portion
14 – 7 Days before trip start 75% of the refundable portion
6 – 0 Days before trip start 25% of the refundable portion
Help

Frequently asked questions

Many travelers purchase shortly after making their first trip payment. Some plans offer time‑sensitive features when purchased within a defined window—check the policy for deadlines.
Typically no. Standard trip cancellation benefits require a covered reason. Some plans offer an optional “Cancel For Any Reason” upgrade with specific purchase deadlines and reduced reimbursement.
Many plans include cancellation coverage for unexpected illness or injury, subject to definitions, exclusions, and required documentation. Pre‑existing condition rules may apply depending on the plan.
That is usually handled under a separate benefit called trip interruption. If included, it may reimburse unused prepaid expenses and additional eligible costs to return home, depending on the policy.
Claims are filed directly with the insurer/claims administrator listed on your policy. You’ll generally provide proof of payment, proof of cancellation penalties, and documents supporting the covered reason.
Next step

Want help choosing the right coverage?

Tell us your dates, destinations, and what you’ve prepaid—our team will help you understand options and connect you with an insurer’s plan details.

Contact Skyline Tours

Disclaimer: Travel insurance is offered by third‑party insurers. Availability, coverages, limits, and exclusions vary. This page does not modify any policy terms.