Trip interruption insurance: How it differs from trip cancellation insurance

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Trip interruption insurance is a type of standard travel coverage that reimburses you for covered travel costs if you have to cut your trip short.

For example, if you’re injured or become seriously ill while traveling and can’t continue your trip, this insurance may cover your prepaid, nonrefundable expenses for the unused portion of your trip, such as flights and hotel stays, as well as transportation home.

Learn more: Travel insurance: What it covers, costs, and how to choose the right policy

Trip interruption insurance typically applies if you have to interrupt or cut your trip short for a covered reason, as listed in your insurance policy. Covered reasons can vary by insurance provider and policy, so it’s always a good idea to see which reasons are included in your policy.

• Disabling injuries or illnesses: If an injury, illness, or other medical condition is disabling enough to interrupt your trip, this coverage should apply. You may have to consult with a doctor and provide that documentation to receive reimbursement.

• Traveler or family member death: You may be eligible for reimbursement if you, a traveling companion, or a family member dies during your trip.

• Travel carrier financial interruption: If one of your travel carriers, such as an airline or cruise line, ceases all operations due to financial conditions, you may be eligible for reimbursement.

• Natural disasters, strikes, and severe weather: The terms and conditions can be more specific for these events. However, you may be eligible for reimbursement if one of these or a similar event occurs and causes you to miss a significant portion of your trip.

• Traffic accident: Being involved in a traffic accident on your departure or return date may qualify you for reimbursement.

• Events that occur before your trip: Trip interruption coverage applies to trips that have already started. For anything that occurs before your trip starts, you need trip cancellation coverage.

• Known events: You typically won’t be covered for situations that occur because of known events. For example, you may not qualify for reimbursement if you have to interrupt your trip because of a known weather event, such as a hurricane.

• Change of mind: Trip interruption insurance doesn’t apply if you simply decide to return home mid-trip for a non-covered reason.

Learn more: What does travel insurance cover, and do I need it?

Trip interruption insurance may apply if you have to interrupt your trip for a covered reason and still have unused, prepaid, nonrefundable flights on your itinerary. For refundable flights, you can cancel them yourself.

Prepaid and nonrefundable hotels or vacation rentals should be reimbursed if they’re still unused and you have to interrupt your trip.

Similar to flights and lodging, you should be reimbursed for prepaid, nonrefundable expenses for unused tours, cruises, and excursions.

Depending on your insurance policy, your flights home and other reasonable costs may be covered.

Learn more: Is travel insurance worth it? 

In general, you have to follow these steps to use trip interruption coverage:

Trip interruption insurance doesn’t apply until you have a covered reason, such as suffering a broken leg or becoming seriously ill.

You should notify your insurance provider as soon as you can after you have a reason to interrupt your trip. Depending on your policy, you may be required to notify your provider within a certain amount of time after a covered event or forfeit any reimbursement claim.

Before submitting your insurance claim, collect all the necessary documentation. You can talk to your provider about the requirements, but it’s also a good idea to collect receipts as you pay for travel expenses to streamline the claim process. You may need receipts for flights, hotel stays, cruises, excursions, and other bookings.

Once you submit your claim, you must wait for your provider to review it. The length of the review process varies by provider and may take days or weeks. It’s important to stay in touch with the claims adjuster throughout the process in case they need more information or documentation.

Your insurance provider will typically give you multiple payment options for claims reimbursement, such as a direct deposit into a bank account or a check mailed to your home address.

CFAR coverage is an optional add-on you can purchase for more flexibility with your trip cancellation options. While potentially useful, this coverage isn’t a replacement for trip interruption insurance. In many cases, you can only use CFAR coverage before your trip has started, while trip interruption insurance applies during your trip.

Learn more: Trip cancellation insurance: What it covers and how to cancel for any reason

Trip interruption and trip cancellation coverage are two different types of travel insurance. You can differentiate them from each other by remembering that:

• Trip interruption insurance applies during your trip

• Trip cancellation insurance applies before your trip has started

Learn more: How to compare travel insurance to choose the right policy

Trip interruption insurance is often included in a standard travel insurance plan, along with trip cancellation and other types of coverage. Generally, travel insurance costs between 4% to 10% of your total trip costs. For a $5,000 trip, a travel insurance plan could cost $200 to $500.

Keep in mind that the best travel credit cards may already offer trip interruption insurance and other coverage. If so, it may not be necessary to purchase additional trip interruption insurance. However, it’s still worth reviewing your situation and comparing standalone plans to ensure you’re meeting all your coverage needs.

Learn more: How credit card travel insurance works

Travel interruption insurance only reimburses you for covered reasons, which often include serious injuries and illnesses.

Deciding to cut your trip short without a covered reason or event will not qualify you for reimbursement through trip interruption insurance.

In this situation, trip interruption insurance would not apply because your trip hasn’t yet begun. Trip interruption insurance applies if you’re already on your trip and you need to cancel for a covered reason.

Trip interruption insurance may make sense if:

• You have high nonrefundable trip costs: The more costs you have, the more you stand to lose if you have to cancel or interrupt your trip.

• You’re traveling for a long period of time: Longer trips tend to have more nonrefundable expenses.

• You’re traveling to multiple destinations: Multiple destinations may mean more flights, hotel stays, and other bookings.

• You have a complex itinerary: If your trip is filled with tours, cruises, hotels, flights, and excursions, you could be on the hook for a lot of money if you need to interrupt it.

• Trip interruption insurance applies if you’re already on your trip and you need to cut your travels short for a covered reason, such as a serious injury or illness. Other covered reasons may include deaths, severe weather, and natural disasters.

• Trip interruption insurance is not the same as trip cancellation insurance. The former applies if you’ve already left on your trip, while the latter applies if you haven’t yet departed.

• Most travel insurance plans include both trip interruption and trip cancellation insurance, but the covered reasons and exclusions can vary by policy and provider. It’s essential that you compare policies to find the best travel insurance for your needs.

Tim Manni edited this article.