Home / International Travel Insurance / Articles / Travel Tips / Is Trip Cancellation Insurance Worth Buying?

Is Trip Cancellation Insurance Worth Buying?

Team AckoSept 12, 2025

Trip cancellation insurance can be worth it depending on your travel plans and circumstances. Nothing crushes the excitement of enjoying the perfect vacation like the possibility of cancelling an already booked trip. From sudden illnesses to family emergencies, travel restrictions, or geopolitical tensions, these situations can leave you out of pocket for non-refundable flights, hotels, and tours.

In fact, cancellations for popular destinations like Turkey and Azerbaijan have recently spiked by 22% and 30%, respectively. In such scenarios, your travel insurance plan offers trip cancellation coverage as per the policy terms and conditions to secure your finances.

Let us keep reading to understand why trip cancellation insurance must be a part of your travel insurance policy for your next international vacation.

Trip Cancellation Insurance

Contents

What is Trip Cancellation Coverage?
Why is Trip Cancellation Insurance Coverage Important?
How Can You Make a Trip Cancellation Claim With Your Insurer?
Important Considerations to Keep in Mind While Getting International Travel Insurance
Secure Your Next Trip with ACKO
Bottom Line
Explore More
Frequently Asked Questions

What is Trip Cancellation Coverage?

Trip cancellation insurance is a form of travel insurance coverage that ensures financial protection if you have to cancel your trip because of unexpected circumstances such as illness, accidents, or other unforeseen events. It covers prepaid, non-refundable costs like flights, accommodation, and tours, so you will not lose money when plans do not go as expected.

Why is Trip Cancellation Insurance Coverage Important?

Travel arrangements can be adventurous, but unexpected circumstances can shatter even the most well-planned plans. According to current figures, 61% of Indian travellers purchase travel insurance for peace of mind and financial security. So, let us take a glance at why this coverage is essential.

Protection Against Unforeseen Circumstances

Illness, family crises, natural disasters, or flight cancellations may compel you to cancel your trip. According to your policy, trip cancellation insurance protects your monetary investments by reimbursing prepaid expenses such as flight reservations and accommodations.

Reimbursement of Non-Refundable Costs

International travel usually comprises a large amount of non-refundable expenses. In case emergencies force you to cancel your trip, travel insurance for international trips covers you so you do not have to drain your bank account.

Typical Coverage

The policies usually pay for non-refundable expenses for:

Medical emergencies concerning you, your travelling companion, or your closest family members.
Cancellation due to serious illness or death of an immediate family member.
Interruption caused by natural disasters such as hurricanes or earthquakes.

Exclusions

Coverage is generally not available for cases like:

If you decide later
For interruptions not specifically named in the policy
If the required records are incomplete, i.e., medical reports or booking confirmations.

Get international travel insurance with ACKO to protect your dream trip from unexpected setbacks with trip cancellation insurance coverage.

How Can You Make a Trip Cancellation Claim With Your Insurer?

In times of need, you can raise a claim with ACKO in two ways: a cashless medical claim and other reimbursement claims. To make a trip cancellation claim with us, you need to follow these steps:

Give a quick missed call at 01246174722 or email us.
We will get in contact with you within 10 minutes.
Share your bills and invoices, and our team will review your documents promptly.
We will process your refund within a few days upon its approval.

You can also contact us anytime you need assistance with the above steps.

Important Considerations to Keep in Mind While Getting International Travel Insurance

The factors that you must keep in mind while selecting a travel insurance policy that will provide you with trip cancellation benefits are as follows:

Know Your Travel Needs and Travel Destination

Always keep your travel updates and requirements handy when buying an insurance plan. Decide what you want from your travel insurance based on your travel destination.This provides a tentative checklist of essential coverage to consider for your policy.

Compare Different Coverage Policies

Never settle for the first recommended policy you find. Compare different policies based on claim amount, premium cost, ease of claiming process, and more. Do not just get yourself the cheapest travel insurance policy; focus on getting quality protection.

Carefully Read the Policy Document

Always remember to carefully read the policy document before purchasing international travel insurance. Fine print of the document can reveal many hidden clauses that you can easily miss. After this, consult your insurer if you have any confusion or doubts.

Familiarise Yourself with the Claim Process

Get to know the insurer's claim process beforehand. This will help you save crucial time in emergencies and make you accustomed to how your insurer works.

Secure Your Next Trip with ACKO

Planning your next international journey? Choose an ACKO travel insurance plan with trip cancellation coverage. We reimburse flight cancellation charges up to $750*, helping you travel with confidence and peace of mind.

Bottom Line

In today’s unpredictable travel landscape, trip cancellation insurance protects more than just your itinerary; it safeguards your financial investment and peace of mind. Whether you face sudden illness, political unrest, or unavoidable emergencies, this coverage ensures you recover non-refundable costs.

Also, go through ACKO Insurance to get the best prices for travel insurance plans for your next international vacation!

Explore More
List of Schengen Countries 2025: Check Schengen Zone Countries
Countries Where the Indian Rupee Has a Higher Value
11 Reasons Why Travel Insurance Is Important for Every Traveller
How Does Trip Cancellation Insurance Work?
List of Countries Requiring Travel Insurance for Visa

Frequently Asked Questions

Q1. How does travel insurance work for trip cancellation?

First, you buy a policy and get to know all of the reasons for which the insurer provides trip cancellation coverage. During a crisis, you raise a claim by filling out the form and submitting all necessary documents. Then the insurer will process your claim and verify the documents. Upon claim approval, you will receive reimbursement directly into your account.

Q2. Is trip cancellation insurance worth it?

Yes, trip cancellation insurance is worth it because you can face any unforeseen circumstances, such as illnesses or injuries, unexpected death in the family, natural disasters, or even widespread strikes, and might need to cancel your trip.

Q3. What is the trip cancellation insurance cost?

A standard travel insurance policy for Australia for a one-week solo trip will cost around ₹364. This includes trip cancellation insurance. Please note that this cost is subject to market changes over time and depends on the travel destination, duration, and number of people travelling.

Q4. What reasons are valid for claiming trip cancellation insurance?

Unexpected death, disablement, injury, illness, or hospitalisation of the insured or an immediate relative travelling with them, requiring at least 48 hours of emergency care, is a valid reason for claiming trip cancellation insurance. It also covers irrecoverable travel or accommodation costs from journey cancellations, unavoidable public events, such as strikes, and catastrophes during the coverage period.

Q5. What is the difference between trip cancellation and trip interruption insurance?

Trip cancellation refers to the cancellation of the trip before it has begun, whereas trip interruption refers to the cancellation of the trip if it ends earlier than initially planned. With ACKO, you can get coverage for both trip cancellations and trip interruptions as per standard travel insurance policy terms.

Disclaimer: The content on this page is generic and shared only for informational and explanatory purposes. It is based on several secondary sources on the internet, and is subject to changes. Please check the policy document for cancellation reasons, and terms and conditions of the policy.