Travel insurance can protect from any hiccups that may happen on or before your trip.
Cancellation cover tends to be part of a standard travel insurance policy, but can come stand-alone.
You won't find cancellation cover on many basic travel insurance policies - you'll probably need a comprehensive one.
What is travel insurance for cancellations and flight delays?
If you have to cancel your trip for a reason outside of your control, travel cancellation insurance will make sure you don't lose out on any non-refundable expenses that you've already paid for. It can help cover the cost of prepaid accommodation, travel and any deposits that you've already put down.
Travel delays is a separate benefit that's also included with most comprehensive travel insurance policies. It can pay for reasonable costs related to trip disruptions – for example, accommodation if you become stranded.
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What is covered by travel cancellation insurance?
Here are some examples of prepaid travel expenses that you can claim back on cancellation cover:
Cancellation fees charged by airlines, hotels, tour operators, rental car companies and more
Non-refundable deposits for pre-booked flights, accommodation, tours and more
Additional travel expenses if you need to return home early from your trip
Tuition fees if you had paid for a course or training at your travel destination
What isn't covered by travel cancellation insurance?
As we touched on above, travel insurers only cover you when you need to cancel or cut your trip short due to situations that are unexpected and outside your control. That means no cover will be provided if:
You change your mind. You can't cancel your trip "just because" and expect to get reimbursed.
You need to cancel because your visa is denied or you have passport issues. It's up to you to make sure you have permission to enter the country you are visiting. Your insurer won't pay for your cancelled trip if you've made the assumption that your visa would be granted or that your passport would arrive on time.
Your best friend dies. Most policies clearly state that you can only claim for cancellation if it is a relative who dies. They will make it clear in the fine print what they mean by relative.
You get reimbursed by the provider. You can't double up if you're eligible for a refund through your trip provider like your hotel. Your insurance will only pay for prepaid expenses that you can't get back any other way.
You travel against your doctor's advice. Travelling against medical advice is a key exclusion on all policies. However, if you cancel your trip because your doctor says you're unfit to travel, you'll be covered for cancellation fees and lost deposits.
Your tour is under-booked. If you've pre-booked a tour on your holiday and then it's cancelled due to under-booking, your policy won't provide any cover. It will be up to the tour provider to either reschedule your trip or provide a refund.
You purchase after something happens or there has been a warning. Your insurer won't cover you if you bought your insurance after there had been reports of an approaching hurricane, social unrest or whatever it is you are trying to claim for.
How to find the best travel cancellation insurance for you
The best policy for a person might not be the best policy for another, so your ideal policy comes down to your specific requirements. Here are some tips on how to settle on the right policy:
Determine your needs and budget. Weigh up how much you are spending on your trip with the likelihood of having to cancel and how much it would hurt to lose that money if you did cancel. This helps you decide how much cancellation cover to get.
Look at what is covered. Check the fine print of a few policies to find out what exactly they accept for a cancellation claim. For example, some insurers will cover you if you cancel because your first cousin or aunt passes away. Others limit it to immediate family only.
Look at what's not covered. It's important to know exactly what your policy won't cover you for. For example, some policies won't cover you if you have to cancel because you were injured skiing if you haven't purchased their optional ski cover as well.
Frequently asked questions
Travel insurance can cover you if you need to cancel for reasons outside of your control. It can cover non-refundable expenses that you've already paid for.
No, this isn't typically offered by Australian travel insurers.
Travel insurance will generally cover you for cancelled flights, providing it is not due to a mechanical issue with the plane. In this case, the responsibility will fall on the airline to make other arrangements for you.
Travel insurance covers cancellations due to unexpected events. Many insures specify the unexpected events it covers. For example, most will cover you if you need to cancel due to the unexpected death of a family member, or you get injured or ill and can't travel anymore. This can include cancelling due to catching COVID-19.
It can, but it also depends on your illness. To get your claim approved, you need to have a certificate from a medical practitioner saying that you're not fit to travel. This means that you won't be covered for mild headaches and stomach cramps. If your illness is related to a pre-existing medical condition that you haven't disclosed, you won't be covered for any expenses.
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To make sure you get accurate and helpful information, this guide has been edited by Tim Bennett as part of our fact-checking process.
Gary Ross Hunter was an editor at Finder, specialising in insurance. He’s been writing about life, travel, home, car, pet and health insurance for over 6 years and regularly appears as an insurance expert in publications including The Sydney Morning Herald, The Guardian and news.com.au. Gary holds a Kaplan Tier 2 General Advice General Insurance certification which meets the requirements of ASIC Regulatory Guide 146 (RG146). See full bio
Gary Ross's expertise
Gary Ross has written 699 Finder guides across topics including:
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I plan to go on a trip for 10 days from July 11 to July 20. Deposit is due May 8. When taking out travel insurance on May 8 should the period of insurance be from May 8 to July 20 or from July 11 to July 20.
Finder
JhezelynApril 28, 2018Finder
Hello Barry,
Thank you for your comment.
Generally, booking a travel insurance as soon as possible means you can benefit from cancellation cover. Once you’ve purchased a policy, cover for cancellation costs starts straight away. I hope this helps.
Regards,
Jhezelyn
AshleySeptember 19, 2017
Will cancellation cover be valid in the event that lessees of a business default and we, as landlords, have to cancel all commitments and holidays to operate the business?
Finder
JoanneSeptember 19, 2017Finder
Hi Ashley,
Thanks for reaching out to Finder.
It does say on our Travel Cancellation Insurance review that cancellation fees charged by airlines, hotels, tour operators, rental car companies, and more are covered by travel insurance. You can review the PDS and T&C of your policy to confirm this or reach out directly to your specific insurance to get more accurate information.
Cheers,
Joanne
WendyApril 7, 2017
can you get insurance to cover your deposit for a cruise which is not going until mid next year? How do I ensure I don’t lose my deposit for any reason
Finder
ZubairApril 11, 2017Finder
Hi Wendy,
Thank you for your question.
finder.com.au is a comparison and information service and we are not permitted to provide our users with personalised financial advice or product recommendations.
Generally, most travel insurance brands won’t allow you to take out cover more than one year in advance, insurers do this to minimise their own risk. However, It could be a good idea to check with your trip provider to see if they have any cancellation cover options.
All the best,
Zubair
RogerFebruary 17, 2017
My son is looking at doing the Youth World Challenge through his school. The cost is approx. $8,600, which has to be raise by the school, family and students. However a deposit and regular payments are required at regular intervals with a lump sum due near the date. As the dates are not set, and that the time has been reduced from 15mths to 9mths for the payment, if we have to cancel due to not being able to raise the funds, will the cost be covered by insurance?
Finder
ZubairFebruary 20, 2017Finder
Hi Roger,
Thank you for your question.
Generally, travel insurance does not provide cover for cancellation due to financial, contractual or other business obligations. For more clarification on this matter best to consult the product disclosure statement or insurer directly.
Cheers,
Zubair
PeterJanuary 6, 2017
I bought Travel Insurance with Insure and GO on the 2nd September 2016 for a trip which commences on the 27th September 2017 for 32 days.
They charged me $690 for two adults which included an extra $427 surcharge for a pre-medical condition.
The airline are willing to refund in full because they changed my flight details so the only other cost for the holiday is about $200 for accommodation for a stop over each way.
There is an excess of $100 per claim on the policy.
Can I claim any of the pre-medical declaration costs as these will not apply until travel begins as we now cannot travel due to my wife having a serious illness which was not diagnosed until December last.
Finder
RichardJanuary 9, 2017Finder
Hi Peter,
Thanks for getting in touch.
You will need to contact the InsureandGo claims department about these matters. You can select the “Get Quote” button of InsureandGo on the table found on this page to be redirected to their website where you can learn more about how to get in touch with them.
All the best,
Richard
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I plan to go on a trip for 10 days from July 11 to July 20. Deposit is due May 8. When taking out travel insurance on May 8 should the period of insurance be from May 8 to July 20 or from July 11 to July 20.
Hello Barry,
Thank you for your comment.
Generally, booking a travel insurance as soon as possible means you can benefit from cancellation cover. Once you’ve purchased a policy, cover for cancellation costs starts straight away. I hope this helps.
Regards,
Jhezelyn
Will cancellation cover be valid in the event that lessees of a business default and we, as landlords, have to cancel all commitments and holidays to operate the business?
Hi Ashley,
Thanks for reaching out to Finder.
It does say on our Travel Cancellation Insurance review that cancellation fees charged by airlines, hotels, tour operators, rental car companies, and more are covered by travel insurance. You can review the PDS and T&C of your policy to confirm this or reach out directly to your specific insurance to get more accurate information.
Cheers,
Joanne
can you get insurance to cover your deposit for a cruise which is not going until mid next year? How do I ensure I don’t lose my deposit for any reason
Hi Wendy,
Thank you for your question.
finder.com.au is a comparison and information service and we are not permitted to provide our users with personalised financial advice or product recommendations.
Generally, most travel insurance brands won’t allow you to take out cover more than one year in advance, insurers do this to minimise their own risk. However, It could be a good idea to check with your trip provider to see if they have any cancellation cover options.
All the best,
Zubair
My son is looking at doing the Youth World Challenge through his school. The cost is approx. $8,600, which has to be raise by the school, family and students. However a deposit and regular payments are required at regular intervals with a lump sum due near the date. As the dates are not set, and that the time has been reduced from 15mths to 9mths for the payment, if we have to cancel due to not being able to raise the funds, will the cost be covered by insurance?
Hi Roger,
Thank you for your question.
Generally, travel insurance does not provide cover for cancellation due to financial, contractual or other business obligations. For more clarification on this matter best to consult the product disclosure statement or insurer directly.
Cheers,
Zubair
I bought Travel Insurance with Insure and GO on the 2nd September 2016 for a trip which commences on the 27th September 2017 for 32 days.
They charged me $690 for two adults which included an extra $427 surcharge for a pre-medical condition.
The airline are willing to refund in full because they changed my flight details so the only other cost for the holiday is about $200 for accommodation for a stop over each way.
There is an excess of $100 per claim on the policy.
Can I claim any of the pre-medical declaration costs as these will not apply until travel begins as we now cannot travel due to my wife having a serious illness which was not diagnosed until December last.
Hi Peter,
Thanks for getting in touch.
You will need to contact the InsureandGo claims department about these matters. You can select the “Get Quote” button of InsureandGo on the table found on this page to be redirected to their website where you can learn more about how to get in touch with them.
All the best,
Richard