Cancellation Cover - Things You Need to know

Before your next getaway, it’s important to keep in mind that cancellation cover insurance only covers you for unforeseen events, not incidents that you have prior knowledge about. For instance, your insurer will not pay for any cancellation costs due to a storm or typhoon hitting your itinerary, since you’re already aware of this information.

On the other hand, if you have travel insurance with cancellation benefits prior to the news of a storm hitting your itinerary, you will be eligible to claim for cancellation costs.

Things covered under Cancellation Cover

Cancelling your trip under these circumstances are eligible for a payout:

• Accidents - Accidents can happen anytime. If it causes significant delays in your trip and forces you to cancel it, your insurer will pay out the cost of cancellation.
• Flight Cancellations - Similarly, flights can be cancelled or delayed for reasons outside of anyone’s control. Most providers can either help you pay for the cost of cancellation or put you in a different flight.
• Missed Accommodation - Many insurers will pay for any deposits made on pre-booked accommodations if you fail to make it on time.
• Delays and Disruptions - In the event of a flight delay, your insurance provider can cover any additional accommodation and even food expenses.
• Alternative Transport - Cancellation cover also kicks in  if you have to cancel any pre-arranged transportation you’ve booked.
• Extreme events - Travel insurance covers weather cancellations. If your venue was ravaged by a harsh storm or other natural disasters, you can rest assured that any incurred expense will be covered.
• Family Emergencies - In case a close relative falls ill and requires your immediate attention, your travel insurance provider can cover any additional travel expenses and deposits you’ve already made.

What am I not covered for?

On the other hand, some incidents may not be covered. Here are some of them:

• Airline delays and cancellations - Airlines cancel flights depending on the circumstances but this doesn’t mean your insurance provider will always cover the cancellation costs. If the cancellation is the airline’s decisions, then it’s their responsibility to compensate, or transfer you to a different flight.
• Missed Accommodation - In line with the point above, if a cancellation by the airline leads you to miss any pre-booked accommodation, then it’s also their responsibility to compensate you.
• Tour Cancellations - If a tour you booked is cancelled due to low turnout, it is the tour company’s responsibility to compensate you.
• Cancelled Leaves - If you cancel a booked trip because your employer cancels your leaves it’s your employer’s responsibility to cover the costs you’ve already paid.
• Refusal of Visa - If you’ve already paid for your trip and accommodation, only to get turned away because of a rejected visa most providers won’t cover your expenses as it’s up to you to ensure that your visa is sorted out.
• Known Events - As stated above, travel insurance pays out for unforeseen incidents while travelling. For example, a pandemic like COVID-19 is well-known so you can’t make a claim if you encounter any cancellations from that. Incidents that cause cancellation shouldn’t be known prior to purchasing your policy for your cover to take effect.

Find the best Travel Insurance with Cancellation Cover in NZ!

Travelling always carries risk. That’s why travel insurance should be an essential to provide you peace of mind if something goes wrong. This can also help you in case you lose out because your long-awaited trip got cancelled.

Looking for travel insurance with cancellation  cover doesn’t have to be difficult and time consuming. Use our comprehensive comparison tool here at glimp and see all your insurance options in one place. Find an option that includes cancellation cover and you’re all set for your next trip — even if you encounter a cancellation or delay!