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.

» Learn more: What to know before buying travel insurance

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.

🤓Nerdy Tip

To qualify for a refund when canceling your policy during the review period outlined in your travel insurance policy, you must not have filed a claim or started your trip yet.

» Learn more: What is travel insurance?

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.

» Learn more: Trip cancellation insurance explained

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.

» Learn more: The guide to Cancel for Any Reason travel insurance

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.

» Learn more: How to find the best travel insurance

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.

How to maximize your rewards

You want a travel credit card that prioritizes what’s important to you. Here are our picks for the best travel credit cards of 2024, including those best for:

  • Flexibility, point transfers and a large bonus: Chase Sapphire Preferred® Card

  • No annual fee: Bank of America® Travel Rewards credit card

  • Flat-rate travel rewards: Capital One Venture Rewards Credit Card

  • Bonus travel rewards and high-end perks: Chase Sapphire Reserve®

  • Luxury perks: The Platinum Card® from American Express

  • Business travelers: Ink Business Preferred® Credit Card

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


Can I get a full refund with travel insurance? ›

Most policies will grant a refund if you cancel within the policy review period, typically 10-15 days from purchase. Natasha is a freelance writer and frequent traveler. She writes about luxury travel, travel hacking and credit card rewards.

Can I cancel my travel insurance and get a refund? ›

You are able to cancel the policy and receive a full refund as long as you have not travelled, no claim has been made or is intended to be made, and no incident likely to give rise to a claim has occurred.

Can I cancel my insurance policy and get my money back? ›

If you paid your premium in advance and cancel your policy before the end of the term, the insurance company might refund the remaining balance. Most auto insurers will prorate your refund based on the number of days your current policy was in effect.

What cancellation reasons does travel insurance cover? ›

Covered Reasons for Trip Cancellation
Covered Reasons for Trip Cancellation
Sickness or Injury
Normal Pregnancy or Childbirth
Attending Childbirth
30 more rows

Is there a fee to cancel travelers insurance? ›

Travelers may also ask for the details of your new car insurance policy to verify you won't be driving without insurance. If you've already paid your premium for the policy period in full, Travelers will refund the unused portion, minus any cancellation fees.

Does travel insurance cover if you change your mind? ›

Travel insurance can help you get your money back if you have to cancel a trip — but only if you cancel for certain reasons. If you want more flexibility, you may need “Cancel For Any Reason,” or CFAR, coverage.

How to get insurance refund? ›

Insurance refunds are typically issued through the same payment method you use to pay for your insurance. So, if you pay your premium with a check, you'll usually get an insurance refund check. Likewise, if you pay with a credit card, your refund will appear as a credit on your card balance.

How long does it take to get a refund from a canceled insurance policy? ›

The time it takes to get your money back depends on how you choose to get your refund. For example, a direct deposit typically takes around two weeks to show up in your account. It may take longer if the insurance company sends a check since you'll have to wait for it to arrive.

How long do you have to cancel an insurance policy? ›

As a financial product, car insurance policies are legally required to come with a 'cooling-off period', which gives you the right to cancel no-questions-asked during the first 14 days. This begins when you receive your paperwork or when the cover starts (whichever is later).

Is travel insurance better than free cancellation? ›

Travel protection focuses primarily on trip cancellation and gives limited protection for unforeseen circ*mstances that may cause you to cancel or interrupt your trip. Travel insurance supplies broader coverage, protecting against a wider range of possible financial losses during your travels.

Is Allianz travel insurance refundable? ›

For a full refund of your premium, you must cancel within 15 days of your plan purchase (depending on your state of residence) and must not have filed a claim or departed on your trip. Premiums are non-refundable after this period.

What does up to 100% reimbursem*nt for covered trip cancellation and interruption mean? ›

The details vary from provider to provider and with each plan. If you do need to cancel, you will be reimbursed 100% of the prepaid, non-refundable trip cost for which you are insured and can provide documentation. All of this coverage, is only if the trip is cancelled due to a specific, unforeseen covered reason.

What are valid reasons to cancel a flight and get a refund? ›

Top Reasons Most People Cancel Trips
  • Injury or Illness. Sickness and injury are the top reasons for cancelling a trip. ...
  • Death. ...
  • Natural Disaster. ...
  • Acts of Terrorism/Evacuation. ...
  • Financial Default of the Travel Company.
  • Death or Hospitalization of Host.
  • Residence Damage. ...
  • Jury Duty or Military Deployment.

Top Articles
Latest Posts
Article information

Author: Geoffrey Lueilwitz

Last Updated:

Views: 6022

Rating: 5 / 5 (60 voted)

Reviews: 83% of readers found this page helpful

Author information

Name: Geoffrey Lueilwitz

Birthday: 1997-03-23

Address: 74183 Thomas Course, Port Micheal, OK 55446-1529

Phone: +13408645881558

Job: Global Representative

Hobby: Sailing, Vehicle restoration, Rowing, Ghost hunting, Scrapbooking, Rugby, Board sports

Introduction: My name is Geoffrey Lueilwitz, I am a zealous, encouraging, sparkling, enchanting, graceful, faithful, nice person who loves writing and wants to share my knowledge and understanding with you.