What is trip cancellation in travel insurance?


A trip cancellation in travel insurance coverage occurs when a person opts out of a planned travel before the scheduled departure date. Simply put, a person cancels a trip when he decides not to push through before the day he was supposed to go.

When a person cancels a trip, there may be prior reservations and advance payments that cannot be redeemed, like advance airplane ticket, hotel and travel agency bookings and other accommodations. That’s where the travel insurance provider comes in to help. Travel insurance companies can reimburse a policyholder’s trip-related expenses when he has to quit on a planned trip due to certain unexpected reasons.

The travel insurance provider usually agrees to compensate the insured when he cancels a trip because he, his family members or business partners suddenly passed away before the trip. (Insert GoBear making a sad face.)  Depending on the terms of the policy, flight cancellations and related travel expenses can also be reimbursed when the insured backed out because a bad situation (riot, disaster, strike, civil commotion, etc.) developed in the destination, he was summoned to the court as a witness, or his home was damaged due to fire, flood or other disasters.

Trip cancellation in travel insurance is not to be confused with trip termination. In the former, a person backs out of a trip before it begins. In the latter, a person ends a trip in the middle of it.



How does coverage differ between insurers?

Fortunately, all 37 of the plans from GoBear’s 10 covered travel insurance companies provide compensation for emergency trip cancellation. (Insert GoBear happy face.) The maximum provision for trip cancellation can go as low as ₱20,000 (FPG Insurance’s Super Tipid plan) and as high as ₱150,000 (all three plans from HSBC* and three of STARR’s plans). 14 of the plans can give up to ₱50,000 in reimbursements for trip cancellation expenses like flight cancellations, including three from Citibank.* In just about every plan, the maximum coverage allotted for trip cancellation is the same as for trip termination.


*The coverage on trip cancellation in travel insurance plans from HSBC and Citibank come with a “deductible” condition, stating that the first ₱500 of the expense related to trip cancellations should be shouldered by the policyholder. Bummer.


Need access to trip cancellation travel insurance coverage anywhere in the world? Compare travel insurance with GoBear Philippines on gobear.com/ph/travel-insurance and find out which plans provide this coverage.

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