Travel insurance cancellation: All you need to know about it

Are you planning a new adventure and want to protect your investment just in case? You’re right to do so. Life’s unpredictable and no one knows what could go wrong. An illness, an unexpected job change or any setback could make you lose what you’ve paid for tickets or accommodation. To help you avoid that, we’ll show you the best trip cancellation insurance, reviews, prices and valid reasons for cancellation. We’ll also compare what several of the most popular insurers offer. 

Many travellers see this service as an unnecessary extra expense. Don’t make the same mistake. Join us to discover how to avoid losing your money if you need to cancel your bookings. Start preparing your trip today without worrying about what might happen!

What Is Travel Cancellation Insurance?

Let’s start from the beginning: have you ever wondered what travel cancellation insurance actually is? It’s a service that lets you recover part or all of what you’ve spent on your bookings. 

Imagine that, one week before your holiday, with hotel, tours and flights already paid, something unexpected stops you from going. Without insurance, you’d lose everything you’d already paid. However, if you’ve got insurance, the company will refund the non-refundable amount from the provider. The money you recover, of course, depends on the policy you’ve chosen.

Keep in mind: these policies don’t always refund your full investment. The cancellation must have a valid reason. What reasons are acceptable for insurers? That depends on the company and the policy. They usually cover unexpected situations such as illness, accident, job loss or even a legal summons. More complete policies include rarer causes, like a natural disaster at your destination.

You could say it’s a “plan B”, a safety net that protects your finances from unforeseen events. As with any service, some policies are more comprehensive than others. It’s vital to read the terms carefully before signing anything.

The Best Travel Cancellation Insurances

Now that we know exactly what travel cancellation insurance is, let’s analyse some good options. When choosing the best one for your needs, focus not only on price but also on cancellation reasons and coverage amounts.

There are actually plenty of choices. Most insurance companies offer a cancellation option. To narrow things down, we’ve selected some of the most popular ones among travellers. Here are our recommendations:

1. IATI Premium Cancellation – IATI Insurance

You’ve probably heard of IATI. With over 135 years in the industry, it’s become a favourite among travellers. It’s succeeded by adapting to new travel styles and different traveller profiles. It’s also well known for its customer service and for making life easy for policyholders.

The IATI Premium Cancellation insurance is an independent product. It complements other policies and can even be taken out before booking. It covers up to $6,480 (€6,000) for flights, accommodation or activities.

• Covered cancellation reasons: it includes over 35 valid causes.  These include serious illness, quarantine, urgent medical procedures or pregnancy. It also covers job-related reasons like dismissal, starting a new job, forced relocation or exams. Legally, it includes court summons or adoption procedures. Additionally, it covers events, natural disasters, piracy, company bankruptcy or theft preventing travel.
• Maximum amount covered per traveller: up to $6,480 (€6,000). You choose your coverage when purchasing the policy.
• Waiting period: if taken out more than 24 hours after booking the first travel service, a seven-day waiting period applies. If taken earlier, there’s no delay and cover starts immediately.
• Insurance price: it varies by destination, trip length and insured amount. For instance, for a 15-day world trip with $1,620 (€1,500) coverage, the insurance costs $114.35 (€105.86) per person.

2. Cap Cancellation – Chapka Insurance

Chapka is also a popular company. It’s French and specialises in travel insurance. They work with CASER and design their policies to simplify processes and cover unforeseen events.

The Chapka Cap Cancellation policy covers up to $7,560 (€7,000) per traveller. There’s no excess, and you can buy it anytime.

• Covered cancellation reasons: it includes serious illness, accident or death of the insured or a close relative. It also covers pregnancy complications, mandatory medical quarantine or vaccine side effects. Legally, you’re protected for dismissal, work changes, legal summons or hearings. Moreover, it covers extraordinary causes like theft, fires, natural disasters or terrorism.
• Maximum amount covered per traveller: non-refundable travel costs up to $7,560 (€7,000), without any excess.
• Waiting period: if taken out more than 24 hours after booking, a five-day waiting period applies. If purchased earlier, coverage starts immediately.
• Insurance price: the cost depends on the destination, duration and insured amount. Using the same example, for a 15-day world trip with $1,620 (€1,500) coverage, it costs $134.10 (€124.20) per person.

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3. Travel Cancellation Insurance – Allianz Assistance

Allianz is one of the most prestigious insurance companies worldwide. You might recognise its international health insurance or car policies. With over six decades of experience, it offers flexible and customisable solutions. It also stands out for its 24/7 customer support.

The Allianz travel cancellation policy covers up to $10,800 (€10,000). Travellers can decide how much they want to insure. To suit different needs, it offers three levels: Bronze, Silver and Gold. Each one varies in coverage and benefits.

• Covered cancellation reasons: Allianz includes up to 27 valid causes. For example, illness or death of the insured or a family member. It also covers accidents, dismissal, new employment, legal obligations, armed forces reassignment, or your home becoming uninhabitable. Some policies also include significant delays or trip interruptions.
• Maximum amount covered per traveller: Up to $10,800 (€10,000). It depends on the declared amount and chosen plan. The Bronze plan applies a 10% excess; Silver and Gold have none.
• Waiting period: Cover starts the day after purchase. If you travel within 30 days, you must buy it within 72 hours of booking for it to apply.
• Insurance price: Let’s use the same example again. For a 15-day world trip insured for $1,620 (€1,500), the prices are:
  • Bronze: $50.85 (€47.10) per person.
  • Silver: $63.30 (€58.65) per person.  
  • Gold: $79.65 (€73.80) per person.

4. Cancellation Plus – Heymondo

Heymondo is another travel-specialised company highly rated by travellers. Founded in Spain in 2016 by David Pérez and Ricard Domenech, Heymondo stands out for its digital approach and clear, customisable products. 

Its travel cancellation insurance offers two options: Cancellation Top and Cancellation Plus. Both cover up to $6,480 (€6,000) per traveller and include over 40 valid reasons. You can buy it anytime, even seven days after booking your trip. Protection starts from the moment you buy it and lasts until your departure day.

• Covered cancellation reasons: It includes health-related issues like serious illness, quarantine, risky pregnancy or urgent surgery. It also covers legal reasons like court summons or divorce proceedings. Work-related cases such as dismissal, forced relocation or starting a new job are included too. Moreover, it covers extraordinary causes like piracy, natural disasters, or event cancellations. Theft or a pet’s death are also valid. In total, it includes up to 47 valid causes.
• Maximum amount covered per traveller: Up to $6,480 (€6,000). Each traveller decides how much to insure.
• Waiting period: None. You can take it out anytime.
• Insurance Price: Shall we use the same example as before? For a 15-day world trip costing $1,620 (€1,500), there are two options:
  • $64.95 (€60.18) per person.
  • Cancellation Plus: $106.00 (€98.23) per person.

5. Travel Cancellation Insurance Reviews: Segurviaje Cancellation – MAPFRE

To finish our list, let’s talk about MAPFRE. It’s one of Spain’s most established insurance companies. Beyond its extensive industry experience, it’s known for combining broad coverage with personalised service, both online and in person.

Its travel cancellation insurance refunds cancellation costs up to the contracted limit. It also includes medical assistance, luggage protection and compensation for transport delays or cancellations.

• Covered cancellation reasons: It includes illness or death of the insured or relatives, dismissal, scholarships, job relocation, theft, accidents or breakdowns preventing travel. It also covers natural disasters and official summons. Moreover, it includes sudden changes in approved holiday leave or adoption procedures.
• Maximum amount covered per traveller: Up to $1,620 (€1,500). It also includes extra services such as medical assistance and legal defence.
• Waiting period: It doesn’t specify a mandatory waiting period, but coverage applies if cancellation happens for a valid reason before departure.
• Insurance price: Let’s check the same example again. A 15-day world trip insured for $1,620 (€1,500) costs $76.30 (€70.63) per person.

Which Is the Best Travel Cancellation Insurance?

As you can see, although all these policies protect you if your trip gets cancelled, the details differ. Which suits you best? It depends on several factors like your trip type, the money invested, and your desired protection level.

Although we’ve already reviewed what each insurer offers, this comparison table gives you a clearer overview of the market:

Comparison of travel cancellation insurance: reviews, coverage and prices.

What can we conclude from it? To begin with, something quite obvious. Not all insurers offer the same, and their prices aren’t equal. In our opinion, two of them stand out.

First, IATI Premium Cancellation provides balanced coverage with no excess and many included causes. It’s one of the strongest choices. It also allows coverage up to $6,480 (€6,000) and suits long trips especially well.

The other one that clearly stands out is Heymondo Cancellation Plus. Its policy is comprehensive, with no waiting period and great flexibility. It’s notable for its wide range of covered causes, up to 47 in total.

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