8 Times Trip Cancellation Insurance Might Not Cover You

Travel insurance (also known as trip cancellation insurance) can provide a number of benefits, including financial protection for your pre-paid trip investments. It can also reimburse you for pre-paid services like hotel reservations and theme park tickets if you decide to cancel your trip for a covered reason.

However, there may be instances when you won’t be covered. Your plan’s policy documents can provide benefit details, conditions, and exclusions.

Let’s look at a few instances when your trip cancellation insurance might not cover you. (Don’t worry. We’ll share a few tips on how to avoid these scenarios too.)

1. You Purchase Travel Insurance After a Named Hurricane Is Headed to Your Destination

A trip cancellation policy can provide financial protection for investments like airline tickets, Airbnb reservations, and other trip expenses.

However, you may not be covered for canceling a trip because of a hurricane if the hurricane was named (often by certain organizations specified in your policy documents) before you purchased your policy.

How to Avoid

Research the potential weather conditions of the destination you plan to visit. Situations like hurricanes or other weather emergencies could lead to canceled or delayed flights and damaged accommodations.

Consider these tips before purchasing your trip cancellation policy:

• Research Hurricane Threats – Check the National Hurricane Center and Central Pacific Hurricane Center website for potential hurricane threats to your destination before booking your trip.
  
  
• Find an Alternate Destination – Consider other destination options if a hurricane is predicted to make landfall. Services like restaurants, shopping, and tourist attractions can be impacted by hurricane weather too. Look for alternate locations that aren’t threatened by severe weather conditions.
  
  
• Move Travel Dates – Push your trip back or travel earlier in the event a hurricane may threaten your destination. You may still be able to enjoy your vacation by strategically avoiding bad weather. Learn how to travel during hurricane season before your next trip so that you’re well prepared. 

2. Your Flight Is Delayed for a Few Hours and You Decide to Just Cancel the Trip

Flights can be delayed for various reasons, like bad weather, mechanical issues, or runway backups. Travel insurance can provide coverage for delayed or cancelled flights, but it’s important to review your policy documents to see when you may be covered for cancelling your trip after a flight delay.

Trip Cancellation benefits often only cover you for delays that meet or exceed a set time frame as specified by your policy. For example, Atlas Journey trip cancellation plans provide Trip Cancellation coverage for flights delayed more than 12 hours due to a covered reason like a strike or bad weather. (Learn more about covered reasons for trip cancellation below.) 

If you cancel before that designated time, you won’t be reimbursed for a cancelled trip. However, you might be eligible for a Travel Delay benefit. This benefit may include coverage for extra expenses like meals, accommodations, and other necessary expenses incurred if your flight is delayed for a specific number of hours (often 5+ hours).

How to Avoid

Checking your plan’s specifics could be the difference between canceling for a covered reason (and getting reimbursed for your trip cost) and cancelling for a not covered reason (and not being reimbursed for all your prepaid expenses). Review the policy documents for your plan carefully, paying special attention to benefits like Trip Cancellation and Travel Delay.

Use these tips as well when planning your trip or dealing with a flight delay:

• Fly Early – Morning flights are less likely to be delayed than those later in the day. Look for flights that depart earlier rather than later to reduce your chances of a delay.
  
  
• Wait Patiently – Trip Cancellation benefits often kick in once an airline has been delayed for at least 12 hours. Read the policy documents for your plan and consider waiting for the cutoff before cancelling.
  
  
• Use Travel Delay Benefits – These benefits often kick in after 5 or more hours of delay, depending on your plan. Receive reimbursement for necessary accommodations, meals, local transportation, and other necessities listed in the Travel Delay benefit details for your plan.

Learn more about how to handle a delayed or cancelled flight.

3. You Cancel After Getting Cold Feet About Flying for the First Time

There are many covered reasons for canceling a flight, but getting cold feet usually isn’t one of them. Reasons like an injury that prevents you from flying or the death of a close family member are just a couple common covered reasons for canceling a trip.

How to Avoid

Consider preventative measures if you are nervous about flying. Use these tips to better prepare yourself for your trip:

• Do Your Research – Airplane accidents are newsworthy events, but they aren’t as frequent as you think. Do some personal research about these complex machines and the extensive list of rules and regulations put in place by the Federal Aviation Administration to ensure your safety.
  
  
• Bring Activities – Be prepared with a book to read, sleep-aids, music, or other items to keep you occupied during your trip. The last thing you need is to have nothing to do but worry during your flight.
  
  
• Travel with a Friend – Sometimes you just need someone by your side to assure you that it will be okay. Consider traveling with a friend or family member to ease your nerves.
  
  
• Upgrade Your Travel Insurance to Include a Trip Cancellation for Any Reason Benefit – Some travel insurance policies allow you to add a Trip Cancellation for Any Reason (CFAR) benefit to your plan for an additional charge. A CFAR benefit will provide reimbursement for your unused, non-refundable, pre-paid deposits if you cancel your trip for a reason like getting cold feet about flying. Learn more about the CFAR benefit below.

Read more about how to overcome a fear of flying.

4. You Cancel After Hearing It Will Rain Every Day During Your Beach Vacation

Your trip cancellation policy may reimburse your prepaid travel expenses if your destination is threatened by severe weather that causes your common carrier (airline company, cruise company, etc.) to shut down for a number of hours—often 12 hours or more.

You may also be reimbursed for cancellation if a natural disaster in your destination has rendered your accommodations uninhabitable.  Minor inconveniences like rain showers are usually not a covered reason for cancellation.

Remember that some locations, including many Caribbean islands, experience showers every day during their rainy season. These showers are often brief and are less likely to impact your planned itinerary.

How to Avoid

Reduce the chance that your plans are impacted by weather conditions by noting these tips:

• Read Weather Predictions – Look at predicted weather conditions for your vacation destination before traveling. Also consider average temperatures and weather in your destination to help you gauge what to prepare for.
  
  
• Look at a Different Destination – You might look at other locations that aren’t in their rainy season or are less likely to have weather conditions that will impact your plans.
  
  
• Upgrade to Include a Trip Cancellation for Any Reason Benefit in Your Travel Insurance Plan – Your travel insurance provide may allow you to upgrade in order to add a Trip Cancellation for Any Reason (CFAR) benefit to your plan. This upgrade could mean reimbursement for your unused, non-refundable, pre-paid trip deposits if you want to cancel for an uncovered reason. See more details in the CFAR section.
  
  
• Keep a Flexible Itinerary – Many minor weather situations that impact your plans will be only temporary. Consider rescheduling your activities around weather conditions. Just remember to be flexible when planning your itinerary. 

5. You Miss Your Flight Because of Long Security Lines

There are several steps that you must take before boarding your plane:

1. Travel to the airport.
2. Check your luggage.
3. Print your ticket.
4. Get through security.

You could end up missing your flight if you don’t plan accordingly. Your travel insurance policy can provide many benefits, but you may not be covered if you show up too late to the airport.

How to Avoid

Frequent fliers know the benefits of arriving earlier rather than later to the airport. Here are a few ways to ease your stress of getting to your airline’s gate on time:

• Arrive Earlier Than You Think – A good rule of thumb is to arrive two hours before your flight plans to depart. Consider arriving even sooner during busy flying times or if you are flying out of a larger airport.
  
  
• Avoid Checked Bags – Save yourself some time by packing only carry-on luggage if you can. This allows you to completely skip the lines for baggage checking.
  
  
• Weigh Your Luggage at Home – If you need to check a bag, pick up a simple luggage weight to ensure your luggage is under the weight restriction before arriving at the airport. Save yourself time emptying your suitcase or dealing with over-weight fees by being prepared.
  
  
• Wear Slip-On Shoes – Expert fliers always consider what shoes they wear to the airport. Slip-on shoes can save time fumbling with laces, zippers, or buckles while getting through security. A quick shoe choice can save valuable minutes if you are running late.

6. You Show Up to Your Accommodations That Are Less Than Satisfactory, and You Decide to Stay Somewhere Else

Many Trip Cancellation benefits will provide coverage if you cancel your trip because a fire, flood, volcano, earthquake, hurricane, or another natural disaster has made your accommodations uninhabitable within a certain number of days of your departure.

Similarly, many Trip Interruption benefits will provide coverage if your trip is cut short because a natural disaster, like a flood, earthquake, or hurricane, has made your accommodations uninhabitable during your trip.

However, minor dissatisfaction with your accommodations isn’t usually a covered reason for interrupting your trip.

Review your plan’s policy documents to learn when your Trip Cancellation and Trip Interruption benefits apply in these scenarios.

How to Avoid

You can often avoid dissatisfaction due to poor conditions or management by performing thorough research before booking your accommodations. Here’s what you can do to avoid the possibility of this happening:

• Ask for Recommendations – Family members and friends who have visited your destination can give you recommendations for where they stayed. Have the reassurance that they have seen it in person.
  
  
• Seek Out Online Reviews – Don’t just rely on a business’ website to know what your accommodations will look like. Seek reviews from other sites like Yelp or Trip Advisor to get more perspectives on what it’s really like to stay there.
  
  
• Use Reputable Rental Agencies – Agencies often have a set bar for the satisfaction of an accommodation by its visitors. Stick reputable rental aggregators like Airbnb, TripAdvisor, HomeToGo, and Hostel World.

Booking a hostel for your accommodations? Read Everything You Need to Know Before Staying at a Hostel.

• Upgrade for Vacation Rental Accommodations Coverage — Consider upgrading for additional coverage under your Trip Interruption benefit if your property rental is unsanitary, not as advised, or inaccessible for 12+ hours. This upgrade can also provide reimbursement for alternative accommodations if your property is overbooked. 

7. You Purchase Trip Cancellation Insurance After Your Flight Is Cancelled

Remember your trip cancellation insurance will only begin on your coverage start date you’ve chosen (as long as we’ve received your payment). Those purchasing a policy after a cancellation will not receive reimbursement for their expenses prior to purchase.

How to Avoid

This mistake is avoidable by being more prepared for your trip. Here’s how you can do that:

• Purchase a Trip Cancellation Policy Sooner – It’s best to purchase your trip cancellation insurance sooner rather than later. This will allow you to feel more prepared if your trip must be canceled beforehand. Plus, certain coverages and optional upgrades (like the Trip Cancellation for Any Reason benefit) may only be available if you purchase your plan within a certain number of days after you make your first trip payment.
  
  
• Read Your Plan’s Policy Documents – It’s important to read through your plan’s policy documents carefully to ensure you are fully aware of what your plan does and does not cover. Pay special attention to the conditions required for each benefit and the policy exclusions.

8. You Decide to Cancel Because You No Longer Think Your Travel Destination Is Safe

Your trip cancellation insurance will provide coverage for many benefits regarding your trip, but cancellation due to safety concerns often requires certain conditions to be met.

For example, some policies, like Atlas Journey Premier, will only cover you for cancellation due to safety concerns threatening your destination if the U.S. Department of State issues a level 4 travel advisory/alert for your destination after you purchase coverage. Other policies may not allow you to cancel due to a travel advisory/alert at all.

Many policies have conditions regarding terrorism, as well. For example, your Trip Cancellation benefit may only apply if you cancel a trip due to a terrorist act occurring in your destination within a certain number of days of your departure—and only if you are not provided an alternate itinerary.

Benefits and their conditions differ from policy to policy, so be sure to read the conditions and exclusions of your Trip Cancellation benefit carefully prior to purchase.

How to Avoid

Knowledge about your destination beforehand can help prevent any need to back out of a trip. Here’s what you can do to be more informed:

• Thoroughly Research – Know what kinds of risks you are willing to take and research what risks your destination may pose on you and your fellow travelers. This kind of information can help you feel more assured when settling on your destination.
  
  
• Stay Updated on Travel Advisories and Alerts – Your trip cancellation insurance may provide coverage if a travel advisory/alert is issued for your destination by the U.S. Department of State after you purchase your coverage. (Remember that some policies require a certain level of advisory/alert to be issued and others do not provide coverage for advisories/alerts at all.) Be sure to read the conditions outlined in your plan and check the U.S. Department of State websites to stay up to date on travel warnings and advisories.
  
  
• Check Your Destination’s Travel Page – See your destination’s International Travel – Country Information page on the U.S. Department of State website for information on potential risks and other facts about your destination before booking.

Need more information about travel advisories? Read more about what they mean regarding your international trip. 

• Sign Up for Alerts – U.S. citizens can sign up for the U.S. Department of State’s Smart Traveler Enrollment Program (STEP) to receive security messages regarding their destination.
  
  
• Upgrade Your Travel Insurance to Include a Trip Cancellation for Any Reason Benefit – Consider purchasing a travel insurance plan that allows you to add an optional Trip Cancellation for Any Reason benefit. This benefit can provide partial reimbursement for pre-paid, nonrefundable expenses in the event you don’t feel comfortable traveling to your destination.

Know Your Policy

It’s important to really know your trip cancellation insurance policy before purchasing. Reading through your plan’s policy documents will help you understand what your plan will cover and what expenses are excluded from coverage. Don’t forget that some policies allow you to purchase optional upgrades to add additional coverage for your trip. Consider those benefits too when deciding on your travel insurance.

Atlas Journey trip protection plans feature customizable coverage for your trip. There are three plans to choose from: Atlas Journey Premier, Atlas Journey Preferred, and Atlas Journey Economy. All three Atlas Journey plans offer a Trip Cancellation for Any Reason benefit upgrade, though availability can depend on your state of residency.