In a nutshell, cancellation cover, in terms of travel insurance, means that if something goes wrong and you need to cancel your trip before you head off, you can claim back any money you lose (up to the amount stated in your insurance policy).
For instance: Diane books an end-of-year trip to Paris.
Does travel insurance cover me if I cancel my flight?
Trip Cancellation Coverage reimburses you for pre-paid, non-refundable expenses if you need to cancel your trip before you depart. Sickness, injury, or death of you, a family member, or a traveling companion. Hurricane damages your destination or cancels your flight.
What is a covered reason for trip cancellation?
Typical covered reasons for trip cancellation/interruption include: Injury or illness of insured, travel companion, family member, or business partner. Hurricane or natural disaster strikes destination. Bankruptcy or financial default of travel company. Terrorism or mandatory evacuation at destination.
What is covered under travel insurance?
Travel insurance is insurance that is intended to cover medical expenses, trip cancellation, lost luggage, flight accident and other losses incurred while traveling, either internationally or domestically.
Does MasterCard cover trip cancellation?
Trip Cancellation Insurance
Protects you and your family against forfeited, non-refundable, unused payments and deposits if your trip is interrupted or cancelled and you have purchased your common carrier tickets with your eligible Mastercard.
How much is cancel for any reason travel insurance?
E.g., if you prepaid $3,000 for an airline ticket, but they would only charge you $400 as the penalty for canceling it, your trip cost would be $3,000 and not $400. You must cancel your trip at least 2 days or 48 hours in advance.