Can You Get a Refund on Travel Insurance? - NerdWallet (2024)

Sometimes travel plans don’t go as expected. For this reason, many travelers purchase a travel insurance policy before a trip begins. Travel insurance can help you avoid losing money by reimbursing you for pre-paid travel costs for covered incidents when your travel plans get disrupted, and you qualify for a covered reason.

While travel insurance can be beneficial, you may wonder, can you cancel travel insurance and get a refund if you change your mind? In some situations, you may be able to cancel your travel insurance policy and get an insurance premium refund. We’ve outlined the essential details below so you know what to expect if you need a refund.

Can you get a travel insurance refund?

Yes, getting a travel insurance refund is possible, depending on when you cancel the policy. To qualify for a premium refund, most insurance companies require the policy to be canceled during the review period outlined in the policy terms.

Otherwise, you won’t be eligible for a refund on your travel insurance. That’s why paying attention to this timeline is essential when buying coverage.

Some insurers call this timeframe a money-back guarantee period, while others call it a review or free look period. The timing varies by policy and insurer, but it’s often between 10 to 15 days.

This period gives travelers time to review the policy documents to ensure it meets their coverage needs. If your travel insurance policy has a money-back guarantee or review period, you can cancel for any reason and receive a full refund within the timeframe if you haven’t filed a claim or departed for your trip yet.

But you won’t get a premium refund if you cancel your policy after the review period. Reviewing the policy terms before purchasing a travel insurance policy is recommended so you know what to expect before buying coverage. You can find details regarding this review timeline in the policy paperwork.

Do you qualify for a refund if your trip is delayed or canceled?

You may wonder, is travel insurance refundable if the trip is canceled? Many comprehensive travel insurance policies include trip delay, trip interruption and trip cancellation coverage.

You must meet the conditions of the coverage outlined in your policy and have a covered reason to qualify for reimbursem*nt for prepaid, nonrefundable trip costs or additional trip expenses that occur due to covered delays, interruptions, and cancellations. But you won’t be eligible for a refund of travel insurance policy premiums.

CFAR travel insurance add-on offers greater flexibility

If you want a more flexible solution, you may want to add Cancel For Any Reason travel insurance (CFAR) coverage to your travel insurance policy.

Some travelers prefer the added protection that CFAR coverage offers. This supplemental coverage costs extra but provides more flexibility for cancellations. However, not every insurance company offers it. You should also be aware that many insurance providers require this coverage to be purchased within a set number of days of making your initial trip payment.

CFAR coverage can provide a partial refund for eligible nonrefundable prepaid travel expenses. You can cancel for any reason, as the name suggests, but you must cancel within the timeframe listed in your policy.

Canceling the day of, for example, is usually not allowed. Many insurers require travelers to cancel at least two days before their trip to qualify for a partial refund.

Reasons why a traveler might cancel their travel insurance policy

Some travelers cancel their travel insurance policy because it doesn’t meet their needs. During the review period mentioned above, travelers should review the terms and conditions to ensure the chosen policy meets their expectations and is a good fit for their trip.

But that’s not the only reason a traveler might consider canceling their policy. Some travelers may wish to cancel their insurance policy if they’ve decided they no longer want to take a trip due to work schedule changes, sickness or other personal reasons.

To cancel and be eligible for reasons like sickness or job schedule changes, travelers need CFAR coverage in their travel insurance policy to receive a partial refund for eligible prepaid trip costs.

How to cancel a travel insurance policy

Contact your insurance company directly to cancel your travel insurance policy. Some insurance providers allow you to cancel your coverage online or by phone. But some insurers require policyholders to cancel their insurance policy in writing. Your best bet is to check with your insurer to learn more about the cancellation process.

Final thoughts regarding a travel insurance refund

If you plan to purchase a travel insurance policy for your next trip, review all policy terms so you can decide early on if it’s the right coverage for you. You will also want to know the outlined timeline to cancel if necessary.

If you want to boost your coverage and be eligible for a partial refund if you get sick or change your plans before departing for your trip, you may want to consider adding CFAR coverage to your policy. Doing this can give you greater peace of mind and more flexibility.