Travel Insurance Cancellation Cover

The common misconception is that all cancelled or missed travel situations are covered. This is not the case. We help to explain the misunderstanding around travel insurance and cancellation cover, so that you can head on holiday stress free and avoid being crushed by unrealistic expectations.

Cancellation Cover Is Explained Legally In Policy Documents As:

Lost deposits and cancellation fees for pre-paid travel arrangements due to unforeseen circumstancesneither expected nor intended by you or which are outside your control.

So What Are Considered 'Unforeseen Circumstances'?

...And when are you covered for travel delays, alternative transport and cancellation? We highlight some scenarios:

• Accident en route
  You will be covered if you missed your flight/booked transport because of a motor vehicle accident, railway accident or marine accident en route and you can prove that there was no other way for you to get to your transport carrier. You will need a letter from the official body in the country you are in to prove the accident happened, such as the Institute of Traffic Administration.
• Flight cancellations
  You will be covered if flights are cancelled due to severe weather or airlines strikes.
• Missed accommodation
  If your flight was cancelled due to a covered reason such as severe weather or airlines strikes and you missed pre-booked accommodation. Your travel insurance will reimburse you for this.
• Extreme events
  Natural disasters, hijacking, riots and civil unrest which affect travel arrangements are all covered. The event must have begun after the insurance policy was issued.
• Severe sickness or severe injury
  You will be covered for lost deposits if you become injured or ill and become unfit to travel, or if you have to return home if a medical practitioner notifies the insurer that you are unfit to continue with your trip. You will need this in writing and it generally cannot be from an undeclared pre-existing medical condition.
• Severe illness, severe injury or death of a close relative
  If you need to return home or cancel a trip because a family member is unwell or there has been a death to a close family member then your travel expenses will be covered. This is subject to age limitations, pre-existing medical conditions and the relative residing in Australia or New Zealand.
• Theft of passports, travel documents or credit cards
  If your passport or documents are stolen, travel insurance will reimburse you for your expenses incurred when replacing your items. Subject to you producing a police report within 24 hours of the incident. You wouldn't be covered if your belongings were lost or stolen if you were intoxicated.
• Frequent flyer points
  If your flight is cancelled due to unforeseen circumstances some insurers will reimburse you the monetary value for loss of frequent flyer points that you might have used to pay for your flight.
• Disruption of journey
  If your flight/transport is delayed more than 6 hours you are entitled to claim accommodation and food that you may need after this time. You can claim around $200 (will vary from insurer to insurer) for each full 24 hour period that the disruption continues.
• Alternative transport expenses
  If your flight/transport is cancelled and you need to reach a pre-booked event (e.g. sporting event or funeral) your alternative transport will be paid for under travel insurance. Even if the reason your flight/transport was cancelled due to a non-covered event such as mechanical fault. As you have already started your journey you can use the 'alternative transport delays' benefit of the policy rather than 'cancellation benefit'.

Different aspects of your travel insurance policy relate to different times of your trip. Generally speaking anything that happens before travelling falls under the 'cancellation cover' and anything that happens once you have already started your journey will fall under 'alternative transport expenses' or 'travel delay'.

Remember in all these covered circumstances travel insurance will only reimburse you for the non-refundable cost of the trip you've already paid for.

You must be able to prove to the insurer that you have done everything reasonable to avoid delay expenses, and in many cases you are going to need to provide written proof of cancelled flights, delays or loss.

How much cancellation coverage do insurers offer?

It depends on which policy you choose. Most insurers offer different cover levels and often at very different price points. We've compared the cheapest comprehensive-style policy offered by each insurer to give you a rough idea. To compare coverage and prices for your trip, use our quote function above.