What is cancellation cover for travel insurance?

If you are buying travel insurance, chances are you have heard about cancellation cover, or may have even considered getting it with a past policy. It seems like there are two camps of people: ones who think cancellation cover is their get-out-of-jail-free card and ones who don’t think it does enough to warrant the cost. Let’s run through some details of this travel insurance add-on to be clear about what situations it does and does not apply to.

Does cancellation cover increase the price of my policy?

If you are purchasing a domestic travel insurance plan, then cancellation cover is automatically included in the price of your policy. The Domestic plan automatically includes up to A$10,000 combined amendment or cancellation costs cover.

If you are purchasing an international travel insurance plan, cancellation cover is not automatically included in the cost. You can, however, add the amount of cancellation cover that suits you. If you do buy cover for international travel insurance plans, the more cover you require, the higher the cost may be.

How much should I choose?

If you choose to purchase the International Cancellation plan, the level of cover you choose will be the total amount covered on a per policy basis. The total you choose will also be shown on your Certificate of Insurance.

If you are travelling domestic, you can choose the amount of cancellation cover required per person. You can choose between A$200, A$400, A$600, A$800 or A$1500.

When figuring out how much cover you should pick, determine the amount that will cover all pre-paid tickets, hotels, tours or other travel related expenses for any travellers you’ll have on your policy.

When is my cancellation policy applicable?

Unfortunately, buying or having cancellation cover as a part of your travel insurance policy does not cover all manner of sins. If you wake up one morning and decide that Fiji just isn’t going to work and you’re just going to stay home instead, this cover will not apply. So, what are some ground rules for appropriate reasons to make use of this type of cover?

• If you have to rearrange your journey prior to leaving home due to unforeseen circumstances outside of your control, this cover will pay the reasonable cost of doing so. (The cover will not pay for more costs than would have been incurred if the journey had been cancelled outright).
• If you have to cancel the journey (and cannot rearrange it prior to leaving home) this cover will pay for the non-refundable, unused part of all travel costs that have been prepaid in advance. This includes any travel agent’s commission. It will also cover frequent flier and flight reward points lost after cancellation of airline tickets.

If you still have questions about when cancellation cover does or does not apply, get in touch with our customer service representatives by calling 1300 916 560. If you’re ready to get a quote for your next holiday adventure, check out youGo Travel Insurance for policies that fit your travel plans.