If the title of this article sparked your interest, then you are most likely planning a trip somewhere and are done with the booking of hotels and airplane tickets. It is important to have travel insurance as well, but often it is just not worth the price, this is why the Cancel for any reason travel insurance exists. You could get coverage for a hundred percent of the total cost you would spend on the trip; however, let us dwell a bit in the insurance.
What is “Cancel For Any Reason” Travel Insurance?
Traditional travel insurances cover possibly injuries during the trip and generally cover unforeseen events. This type of insurance is similar to that, as you will receive the full amount of the expenses you made on your trip in case that you needed to cancel it right at the last second. There are many scenarios in which that might happen. For Example, we have had a case where a girl and her college friends wanted to visit Cairo. They bought the plane tickets, booked the hotel as well as opted in for a tourist guide package tour. Just a week before they were going to go news of massive riots and protests hit the TV screens. There were cases of looting, shooting, rioting and fifteen million people got out on the street to go against the current government. This is obviously a legitimate cause to cancel the trip, however, they would have lost a lot of money, and it is not like anyone could have predicted that. However, the girl was smart, and she previously purchased a cancel for any reason travel insurance and received all of the expenses back.
Coverage of the Insurance
The covered expenses are basically the cost of non refundable payments and pre paid deposits. Rarely does a hotel allow a person to book it without a deposit of at least thirty percent for the room. It allows for people who worry too much about possible loss of money due to a potential travel cancellation have a peace of mind.
In order to understand how the insurance works, you also have to be aware of the cancellation penalties, as the insurance only covers uncovered expenses. Let us take the example with the girl and her friends which wanted to visit Cairo. Let’s say that they spent 4,000$ on the trip. Upon cancelling the travel agency penalized them with 50%, which means they received two thousand dollars back. What this means is that if the cancel for any reason travel insurance was bought with a hundred percent coverage, then the group will receive the amount of two thousand dollars, and not four thousand even though those are the total expenses on the trip. It is structured so, for obvious reasons as otherwise, people would easily be able to abuse it for profit.