Trip interruption insurance is a type of standard travel coverage that reimburses you for covered travel costs if you have to cut your trip short.
For example, if you are injured or become seriously ill while traveling and are unable to continue your trip, this insurance may cover your non-refundable prepaid expenses for the unused portion of your trip, such as flights and hotel stays, as well as transportation home.
More information: Travel insurance: what it covers, costs and how to choose the right policy
Trip interruption insurance generally applies if you have to interrupt or shorten your trip for a covered reason, as stated in your insurance policy. The reasons covered can vary by insurance provider and policy, so it’s always a good idea to see what reasons are included in your policy.
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Disabling injuries or illnesses: If an injury, illness or other medical condition is disabling enough to interrupt your trip, this coverage should apply. You may need to consult with a doctor and provide that documentation to receive reimbursement.
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Death of a traveler or family member: You may be eligible for a refund if you, a travel companion, or a family member die during your trip.
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Travel Carrier Financial Disruption: If one of your travel companies, such as an airline or cruise line, ceases all operations due to financial conditions, you may be eligible for a refund.
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Natural disasters, strikes and adverse weather conditions: Terms and conditions may be more specific for these events. However, you may be eligible for a refund if one of these or a similar event occurs and causes you to miss a significant portion of your trip.
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Road accident: Being involved in a traffic accident on your departure or return date may qualify for a refund.
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Events that occur before your trip: Trip interruption coverage applies to trips that have already begun. For anything that happens before your trip begins, you need trip cancellation coverage.
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Known events: You generally will not be covered for situations that occur due to known events. For example, you may not qualify for a refund if you have to cut short your trip due to a known weather event, such as a hurricane.
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Change of mind: Trip interruption insurance does not apply if you simply decide to return home mid-trip for an uncovered reason.
More information: What does travel insurance cover? I need it?
Trip interruption insurance may apply if you have to interrupt your trip for a covered reason and you still have unused, prepaid, non-refundable flights on your itinerary. For refundable flights, you can cancel them yourself.
Prepaid, non-refundable hotels or vacation rentals must be refunded if they are not yet used and you have to interrupt your trip.
Tours, cruises and excursions.
As with flights and accommodation, you must be refunded for non-refundable prepaid expenses for unused tours, cruises and excursions.
Depending on your insurance policy, your return flights home and other reasonable costs may be covered.
More information: Is travel insurance worth it??
In general, you must follow these steps to use trip interruption coverage:
Trip interruption insurance doesn’t apply until you have a covered reason, such as suffering a broken leg or becoming seriously ill.
You should notify your insurance provider as soon as possible after you have a reason to interrupt your trip. Depending on your policy, you may be required to notify your provider within a certain period of time after a covered event or lose any claim for reimbursement.
Before filing your insurance claim, gather all necessary documentation. You can talk to your provider about the requirements, but it’s also a good idea to collect receipts while you’re paying for travel expenses to streamline the claims process. You may need receipts for flights, hotel stays, cruises, tours, and other reservations.
Once you submit your claim, you must wait for your provider to review it. The length of the review process varies by provider and can take days or weeks. It is important to stay in contact with the claims adjuster throughout the process in case you need more information or documentation.
Typically, your insurance provider will provide you with multiple payment options for claim reimbursement, such as a direct deposit into a bank account or a check mailed to your home address.
CFAR coverage is an optional add-on you can purchase for more flexibility with your trip cancellation options. While potentially useful, this coverage is not a substitute for trip interruption insurance. In many cases, you can only use CFAR coverage before your trip begins, while trip interruption insurance applies during your trip.
More information: Trip cancellation insurance: What it covers and how to cancel for any reason
Trip interruption and cancellation coverage are two different types of travel insurance. You can differentiate them from each other by remembering that:
More information: How to compare travel insurance to choose the right policy
Trip interruption insurance is typically included in a standard travel insurance plan, along with trip cancellation and other types of coverage. Generally, travel insurance costs between 4% and 10% of the total cost of your trip. For a $5,000 trip, a travel insurance plan could cost between $200 and $500.
Keep in mind that the best credit cards for travel may already offer trip interruption insurance and other coverages. If so, it may not be necessary to purchase additional trip interruption insurance. However, it’s worth reviewing your situation and comparing standalone plans to make sure you meet all your coverage needs.
More information: How credit card travel insurance works
Trip interruption insurance only reimburses you for covered reasons, which often include serious injuries and illnesses.
This coverage allows me to cut my trip short and go home.
Deciding to shorten your trip without a covered reason or event will not qualify you for a refund through trip interruption insurance.
In this situation, trip interruption insurance would not apply because your trip has not yet begun. Trip interruption insurance applies if you are already on your trip and need to cancel for a covered reason.
Trip interruption insurance may make sense if:
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You have high non-refundable travel costs: The more costs you have, the more you will lose if you have to cancel or interrupt your trip.
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You are traveling for a long period of time: Longer trips tend to have more non-refundable expenses.
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You travel to multiple destinations: Multiple destinations can mean more flights, hotel stays and other bookings.
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You have a complex itinerary: If your trip is full of tours, cruises, hotels, flights and excursions, you could be forced to pay a lot of money if you need to break it up.
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Trip interruption insurance applies if you are already traveling and need to interrupt your trip for a covered reason, such as a serious injury or illness. Other covered reasons may include deaths, adverse weather conditions, and natural disasters.
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Trip interruption insurance is not the same as trip cancellation insurance. The first applies if you have already left on your trip, while the second applies if you have not left yet.
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Most travel insurance plans include trip interruption and cancellation insurance, but covered reasons and exclusions may vary by policy and provider. It is essential that you compare policies to find the best travel insurance for your needs.
Tim Manni edited this article..