Does Travel Insurance Cover Trip Cancellation?

A mature man at home looking concerned while on the phone.

This guide explains what cancellation cover includes, when it applies, and how to make a claim.

Key takeaways:

Cancellation cover can reimburse non-refundable costs like flights and accommodation if you cancel for an unexpected reason.
Covered reasons often include illness, redundancy, bereavement or damage to your home.
Not covered: changing your mind, undeclared medical conditions or voluntary changes to your plans.

What is cancellation cover?

Cancellation cover is part of many travel insurance policies. It helps you get your money back if you need to cancel your trip due to unexpected circumstances.

It’s usually included in both single trip cover (for one-off holidays) and annual cover (for multiple trips throughout the year), though the level of protection can vary depending on your policy.

If you’ve already paid for things and can’t get a refund, this cover lets you claim those costs back.

Which costs are covered by trip cancellation cover?

Trip cancellation cover usually pays for things you booked before your trip that can’t be refunded. This includes flights, accommodation, tours and activities you’ve already paid for.

When does travel insurance cover trip cancellation?

Director of Health and Travel Insurance Michelle Cooper

“Travel insurance can cover you if you need to cancel your trip unexpectedly, but it depends on the reason. That’s why it’s important to purchase travel insurance as soon as you book your trip, as unexpected circumstances may arise at any time. This will ensure any costs paid (including deposits) are insured against loss.”

Michelle Cooper, Director of Health and Travel Insurance

There are several situations where you may be covered, including:

Illness or injury. If you or someone you're travelling with becomes ill or injured before the trip. You may also be covered if a declared medical condition gets worse before you travel.
Involuntary redundancy. If you or your travel companion loses a job through redundancy before the trip starts.
Family bereavement. If a close family member dies unexpectedly. You might not be covered if they had a known medical condition when you bought your policy.
Court appearance or jury service. If you're called to serve on a jury or appear in court as a witness.
Your home becomes uninhabitable. If your home is damaged by fire, flood or storm – or if you need to stay home after a burglary.

When is a trip cancellation unlikely to be covered by travel insurance?

The word ‘unexpected’ is key when it comes to cancellation cover. Most travel insurance policies only pay out if you cancel your trip for a reason you couldn’t have seen coming.

You’re unlikely to be covered if you cancel because:

You change your mind and no longer want to go.
You didn’t declare a pre-existing medical condition that stops you from travelling.
You’re dismissed from your job or choose to take voluntary redundancy.
You booked your trip knowing something – like a strike – might cause problems.
Your employer won’t give you time off.

Also, if your flight is cancelled, your insurer probably won’t pay out. In most cases, the airline is responsible for compensation.

Will I be covered if I cancel because I want to change destinations?

Most travel insurers won’t cover you if you cancel your trip to go somewhere else. Changing your destination is seen as a personal choice, not an unexpected event. To be covered, your reason for cancelling usually needs to be something serious and unforeseen, like illness or a family emergency.

How do I make a claim for a cancelled holiday?

If you need to make a claim for a cancelled trip, follow these simple steps:

1. Check your policy.
Make sure your reason for cancelling is covered by your travel insurance.

2. Gather your documents.
You’ll need proof of payment, booking details and any cancellation notices.

3. Contact your insurer.
Get in touch with your provider as soon as possible. You can usually do this online or by phone.

4. Fill out a claim form.
Complete the form with all the details about your trip and why you had to cancel.

5. Send your documents.
Attach your receipts, booking confirmations and any other required paperwork.

6. Wait for a response.
Your insurer will review your claim and let you know if it’s approved.

Who underwrites Saga Travel Insurance?

Saga Travel Insurance is designed for people over 50 and is underwritten by Astrenska Insurance Limited, with claims administered on their behalf by Collinson Insurance Services Limited.