Imagine planning a trip only to have all your plans come crashing down around you part way through your excursion. In other words, it means a lot of time, effort and money wasted. However, life can happen from time to time. Maybe you have to rush home because a family member has fallen ill or work calls, and it can’t wait until you get back home. Either way, your trip is ruined and there’s nothing you can do to get your money back after leaving early or is there?
Trip interruption insurance can come to your rescue if you fall victim to unforeseen events. This insurance coverage is likely a part of your travel insurance policy. If it isn’t, it’s worth investing in because you never know what will happen. Your trip could get interrupted at any time even if things seem to be going relatively well. Don’t lose all everything you worked so hard for — continue reading to learn more about trip interruption insurance.
Understanding trip interruption insurance
Trip interruption insurance comes into effect if you have to go home earlier than you thought. The other scenario when a trip interruption can occur is when you have to stay at your destination longer than planned. As a result, it helps you in two different ways. If you have to depart early, trip interruption insurance will refund any prepaid costs with the exception of available funds up to the maximum benefit policy listed in your policy. When you have to stay longer than expected, trip interruption insurance will pay for additional accommodations as well as your trip home.
What reasons justify a trip interruption insurance claim?
Purchasing a comprehensive travel insurance policy means having trip interruption coverage in case something happens. With that said, you may wonder what needs to happen for you to make an insurance claim. You might hear the term departure trip cancellation insurance floating around because it helps cover unforeseen departures. However, there’s so much more to it than that. The acceptable reasons for making a trip interruption claim include the following:
- If you, your travelling companion or family member gets sick or injured
- When you are directly involved in a traffic accident on the way to depart
- A travelling companion or family member passes away
- A travel carrier delay, such as an airplane having mechanical issues occurs
- Natural disaster
- Mandatory evacuation
- Quarantine due to an illness (See our article about Covid 19 and travel insurance)
- Inclement or severe weather
- Terrorism attacks
- Your home or destination becomes uninhabitable as a result of a burglary, fire, flood or natural disaster
Review your travel insurance policy to ensure extra costs, such as medical expenses, are covered. It will help ensure safe travels abroad. This requires travel medical insurance, which is separate from trip interruption coverage. Ask your insurance broker about endorsements you can add to your policy to avoid expensive out of pocket expenses. You can also ask them for details about what trip interruption insurance covers, which we will review in the next section.
What does trip interruption insurance cover?
When you experience a trip interruption, your insurance coverage can help you out. It will help cover unexpected trip expenses that come up when you leave your destination early or late. This can relieve some of the financial strain that would otherwise be coming out of your wallet. What trip expenses are covered by this type of coverage? Here’s what you need to know:
Transportation costs
Let’s say you took a tropical trip to the Caribbean Islands to escape the bitter cold Canadian winter. That sounds like a fun time. However, there may be a reason that you have to leave early or stay longer than expected, but who can complain about some more fun in the sun, right? Either way, you’re at risk of losing money if you don’t have insurance. However, if you make a trip interruption claim, the following transportation costs may be covered:
- Transportation costs if you had to leave and come back to your trip due to an interruption
- Transportation expenses in the event that you reach your destination later than expected
- A flight home if you have to leave early
Accommodation expenses
As a smart traveller, you likely put together a budget for your trip. However, you probably only have enough money to sustain yourself for the duration of your stay. Depending on where you go, trip costs can add up quickly, and you should be careful about this. Despite this, sometimes, things are beyond our control, such as the need to pay for additional accommodations. This could be due to a number of reasons, but the ones covered by trip interruption insurance include:
- Compensation for accommodations if you have to stay at your destination for longer than expected
- Pre-paid, unused, or non-refundable accommodation deposits if you have to leave early
When something unexpected happens that forces you to leave or stay longer, the right insurance coverage makes a difference. It prevents you from having to pay for everything out of pocket. It also stops you from making all your planning go to waste if you are able to return to your destination after going home temporarily. Similar to other types of insurance coverage, trip interruption has its limitations. Next, we will explore what’s included from trip insurance coverage.
What isn’t covered by trip interruption insurance?
Like its counterparts, trip interruption insurance has its limits. In other words, you should review your complete coverage details to ensure you aren’t violating your policy. If this is the case, you risk getting your claim denied and having to pay for everything out of pocket. Yes, prepaid travel arrangements will be covered, but not everything is. Reach out to your insurance provider before making any assumptions, but most of the time, the following aren’t covered:
- Getting injured as a result of being intoxicated or under the influence of a controlled substance
- Committing a crime or any type of illegal act
- Any injury related to mountaineering, skydiving, hang gliding or deep-sea scuba diving
- Mental or emotional distress that doesn’t require hospitalization
- Traditional pregnancy or childbirth
- Pre-existing medical conditions
- Suicide, attempted suicide or intentionally injuring yourself
- War
Your trip can get interrupted as a result of anything from severe weather to a medical emergency. In most cases, these trip interruptions cannot be predicted. However, the reasons in the list above can be, which is why insurance won’t provide compensation for them. Now that we understand what is and isn’t covered by trip interruption insurance coverage, it’s time to move onto the million-dollar question, “How much does it cost?”
How much do trip interruption benefits cost?
Trip interruption insurance benefits are worth the costs, but what is it? Is it expensive? While there isn’t a universal price tag for everyone, your insurance company will take a few factors into account when deciding the price of your coverage. You should keep these in mind if you have to claim for a covered reason later. After all, your travel investment and other expenses can add up if you don’t have coverage. Here’s what you need to know about the costs of trip interruption insurance:
Age
Your age affects the costs of your trip interruption insurance. That’s because as you age, you are more vulnerable to injuries that require emergency medical care. As a result, if you get hurt or fall ill during your trip, the chances of your insurance company having to pay for your medical expenses increases. Depending on what happened, you might need to take the maximum benefit amount.
Trip duration
A short road trip where you only require travel trailer insurance isn’t as risky as a flight across the ocean. The longer you go away, the more likely it is that you will experience a trip interruption. Because of this, the price of buying an airline ticket to go home early will be much higher. Additional transportation expenses and medical expenses will be the responsibility of your insurance company.
Insurance coverage limitations and your deductible
Travel insurance policies have maximum coverage limits, including some for trip interruption insurance. Having a higher coverage limit will increase the cost of your coverage, but protect you more. Your deductible also comes into play, as it’s the amount you have to pay before being compensated by your insurance provider. A higher deductible leads to lower rates, but costs you more out of pocket if you have to make a claim.
The price of trip interruption coverage often varies depending on the traveller and their personal circumstances. Because of this, there isn’t a one-size-fits-all cost for everyone, and that’s the case for most types of insurance coverage. You can learn more with our travel guide. However, you shouldn’t confuse trip interruption insurance with trip cancellation and trip delay insurance. We will discuss the differences between the three in the next section.
What is the difference between trip interruption and trip cancellation insurance?
Trip cancellation and interruption insurance are terms that are sometimes used interchangeably. However, they shouldn’t be, as they are not the same. There is a clear difference between cancellation and trip interruption in more ways than one. Both are important, and you should consider purchasing each type of coverage if you’re planning a trip in the near future. It’s time to break down the differences between trip interruption benefits and trip cancellation insurance.
Let’s start off with trip cancellation insurance. In order to make a trip cancellation claim, you have to cancel your trip before you leave. In other words, trip cancellation benefits will refund prepaid travel arrangements or otherwise, non-refundable travel expenses, including your airline ticket, cruise tickets, tour bookings and hotel reservations. The other thing you can be compensated for is when you prepaid for shared accommodations, and your travel companion cancels last minute.
In contrast, trip interruption benefits offer coverage when you have to leave early, leave and come back or pay for extra hotel nights due to extenuating circumstances. The difference is you have to have left for your trip already for this insurance coverage to come into effect. That’s why it’s also referred to as departure trip interruption insurance. It’s important to note that the trip interruption has to be a result of a reason listed in your policy to be valid.
What is trip delay insurance?
Trip delay insurance is another common term that shouldn’t be confused with its counterparts. The advantage it has over its counterparts is the ability to make a claim before you part or when you’re already at your destination. Basically, this type of coverage will help compensate you for short pauses in your travel plan. Examples include a flight being late, which causes you to miss your tour bus, check in late to your hotel, and miss your dinner reservations. All of these expenses would be covered by your insurance policy. However, a certain amount of time has to pass for this coverage to be valid.
Speak with BrokerLink broker today
Having travel insurance, especially departure trip interruption insurance, is essential if you’re planning a big trip. It will protect you in the event that you have to leave early for a variety of reasons. However, you should review your complete coverage details to know what you will be compensated for. Prepaid travel arrangements and other extra costs may be covered. However, additional medical coverage may be required for you to receive treatment without flying back home.
Navigating the exciting world of travel insurance can be difficult. Luckily, you don’t have to do so alone. Having an insurance broker by your side will allow you to choose a travel insurance policy with trip interruption coverage that suits your needs. You can easily travel safely with Tugo or Travelwell. This can save you from unexpected out of pocket expenses adding to your trip cost, especially if you’re paying for third-party liability car insurance for your road trip. Receive the financial protection you need by calling, using our online quote tool or visiting one of our BrokerLink community branches today.
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