Why do I need holiday cancellation cover?

Holiday Insurance Cancellation Cover

Booking a holiday gives us something to look forward to, and planning your trip is an exciting time, but it’s essential to consider holiday insurance cancellation cover and why you need it.

What is cancellation cover on Travel insurance? 

Holiday cancellation insurance is a feature that protects you financially if unforeseen circumstances force you to cancel your trip. The thought of having to cancel your holiday is probably the last thing on your mind, but unfortunately, it can happen, so it’s important to make sure you’ve got the right cover in place so you don’t lose out financially.

Recent Trends in Cancellation Claims

New figures from the ABI (Association of British Insurers) show that cancellation claims rose by 75% on 2021 to 129,000 in 2022.

All policies have different cancellation limits so always check your policy carefully to make sure you have enough to cover the full cost of your trip. Our policies offer up to £12,500 for cancellation per person online, emphasising the importance of Travel Insurance cancellation cover.

Cancellation is one of the key costs that holiday insurance protects you against, along with medical treatment abroad and baggage. In this week’s blog, we look at why holiday cancellation cover is so important.

What is holiday cancellation cover?

Holiday cancellation cover comes as standard on all of our Travel Insurance policies. It will cover you if you are no longer able to travel on your planned trip due to unforeseen circumstances. Please note that, Travel Insurance cancellation doesn’t cover changes of mind or incidents related to self-inflicted injuries or drug usage. It will cover a number of insured reasons for cancelling, such as falling ill, sudden family illness, death, or injury, jury service and more. Please carefully read your policy reading to fully understand what is and isn’t covered.

What is covered by holiday cancellation insurance?

Cancellation cover will generally cover the costs of your pre-booked flights and transport, accommodation and pre-arranged excursions should something unexpected happen, such as falling ill or an accident which means you are unable to travel, as well as bereavement of a close relative.

You will also be covered for other circumstances, such as being called for jury service, a fire at your home or having to cancel due to being involved in an accident on your way to the airport.

What is not covered by holiday cancellation insurance?

• Changing your mind or deciding that you no longer want to go on your holiday.
• Having to cancel your trip due to self-inflicted injury or illness linked to drug usage.
• Illness or bereavement of a close relative if they have a pre-existing medical condition which deteriorates.

How far in advance should I buy Travel Insurance?

We always recommend that you buy your Travel Insurance with cancellation cover, as soon as you have booked your holiday (ASAB). Doing this will mean that you have immediate cover for unforeseen cancellation of your trip anytime up until your departure date.

When buying your Travel Insurance check how much cancellation cover you need to cover the total cost of your trip. You can compare cover and prices online.

If you can’t find suitable cover get in touch with us by calling our office FREE on 0800 294 2969 where we can provide cancellation cover of up to £50,000 per person.

I’m travelling tomorrow. Can I exclude cancellation cover?

We always recommend taking out adequate Travel Insurance that includes holiday cancellation cover. However, if you’re buying your Travel Insurance last minute, you may save money by asking to remove cancellation cover.

However, this does mean that you will not be able to claim from your Travel Insurance if something unforeseen happens and you are not able to go on holiday.

What documents will I require to make a cancellation claim?

When making a claim, your insurer will usually ask for proof of the reason as to why you are cancelling your trip, the evidence must include the date. This helps insurers combat fraud where someone knows they need to make a claim and buy Travel Insurance after they are aware that they need to cancel their trip.

You can find more information about the type of document required to support your cancellation claim in your policy wording. Depending on the reason, this could be cancellation confirmation from your travel agent, a doctor’s note, a police report, etc.

You will also be responsible for the policy excess, which is the first part of any claim. This can range from zero to £250, depending on which policy you buy. To avoid excess charges, opt for our Gold Travel Insurance option.

Find out more

Always check your policy for the specifics of holiday insurance cancellation cover and the required documentation for claims. If you prefer to discuss this with someone or need more advice, please call our Travel Insurance experts FREE on 0800 294 2969.