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Travel Insurance With Cancellation and Delay Cover
Travel Insurance With Cancellation and Delay Cover
Written by
Tina Sendin
Edited by
Ellie Garran
Reviewed by
Adrian BennettEasily compare Travel Insurance
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What is cancellation and delay cover in travel insurance?
Long story short
Travel insurance can help with unexpected costs from cancelled flights or delays
Cancellation and delay cover can be your safety net, but limits and exclusions apply.
Cancellation and delay cover isn’t a standalone product
Mid-tier and comprehensive policies often include these as standard, albeit separate, benefits.
Under these types of cover, you could claim for things like prepaid bookings and additional expenses
But don’t expect cover for changing your mind, airline mechanical issues, or poor planning.
What is cancellation and delay cover in travel insurance?
You’ve lined up the adventure, chucked your sunnies in the bag, and you’re ready to go – but what if things don’t go to plan?
Travel insurance can help you iron out the unexpected kinks, like trip cancellations or extra costs from a delayed flight. Cancellation and flight delay cover typically come as standard benefits in mid-tier and comprehensive travel insurance (sorry, you generally won’t get to enjoy this with a basic level of cover), and they’re available in both single-trip and annual multi-trip policies.
It’s worth highlighting that cancellation and travel delay cover isn’t a standalone product. They’re two separate benefits often already included in travel insurance with mid-tier and comprehensive cover.
For instance, delay cover only kicks in when you find yourself stuck somewhere because of travel delays, needing to pay for unexpected accommodation or meals. On the other hand, any cancellation fees and lost deposit benefits start as soon as you buy the policy, whether it’s ages before you hop on the plane or you’re halfway through your trip and needing to cut it short.
It’s a good idea to read your policy’s product disclosure statement (PDS) to understand the coverage it has around cancellations and delays.
Our fictional friend Jess books a dream trip to Bali with her mates and gets travel insurance that includes $3,000 in cancellation cover. A week before the trip, she breaks her leg playing footy – ouch. Suddenly, she can’t travel anymore – more ouch!
Her flights cost $1,200, and her prepaid villa accommodation was $2,500. Jess can only claim $3,000, so she’ll need to cop the remaining $700.
While Jess still needs to pay out of pocket, organising travel insurance straight after booking her flights has helped her get a precious three grand back.
What does travel insurance typically cover in terms of cancellations and delays?
Let’s break this down based on what’s usually covered (and not) for the specific travel hiccup – whether it’s cancellations or flight delays.
Cancellation cover
Cancellation cover could get you sorted if you need to call off or reschedule your trip before you even take off, or if you need to cut your trip short once you’re on the go.
What’s typically included
Flight-related cover
- If your flight gets cancelled and the airline won’t reschedule or reimburse you
- Coverage for flights booked with frequent flyer points if the airline refuses to compensate you
- Needing to cancel or reschedule your flight due to circumstances beyond your control – like a car accident
- If your doctor says you’re not fit to travel, and you have a medical certificate to prove it
- If there’s a sudden death, injury, or illness of someone close to you
- If you need to go on jury duty or serve as a witness to a case
- If you become pregnant after buying the policy and you’ll exceed the policy’s cutoff
- If you’re suddenly too crook to go on your trip
Prepaid expenses
If you need to cancel your trip (bad luck!) and you’ve got suitable cancellation cover, you might be able to get reimbursed (up to the benefit limit) for things like non-refundable prepaid bookings and cancellation fees for:
- accommodation and meal bookings
- tours, excursions, and activities
- visa costs
- transport arrangements
- travel agent services.
What’s not typically included
- Expenses picked up by your carrier
- Changing your mind about the trip
- Flight cancellations due to airline issues (mechanical problems, overbooking)
- Cancelling due to undisclosed pre-existing medical conditions
- Visa delays or denials, or failing to apply for one
- A missing passport or delay in receiving your passport
- Missing the flight due to poor planning
- Claims caused by transport delays, say a bus or train line
- Relationship breakdowns (no, breakups don’t count unfortunately)
- Terrorism-related cancellations
- Claims arising from natural disasters, unless you’ve got upgraded cover for such
Travel delay cover
If your prepaid flight, train, bus, or other public transport gets delayed, cancelled, or rescheduled, travel delay cover can help you claim back some of the costs you have to pay to get your trip back on track. The same goes if you miss a connecting flight because something unexpected throws a spanner in the works.
What’s typically included
If your prepaid public transport gets canned, rescheduled, or delayed during your trip because of something unexpected and out of your hands – and you’re stuck waiting for at least a certain number of hours, say six – then your insurer might sort you out for:
- the reasonable cost to rejig your travel plans and get back on track with your prepaid bookings
- the cost of extra accommodation and meals while you wait.
If you’ve missed your connecting flight, you can also be covered if your trip’s interrupted by something unexpected, and totally out of your hands. This includes if you can’t make your trip due to important events like a:
- funeral
- conference
- wedding
- 25th or 50th wedding anniversary
- concert that won’t wait for you (because you’re no Tay-tay or Bono).
You can also be covered for a reasonable additional cost of alternative public transport to get you there on time. Note, however, that this might only apply to comprehensive plans, so it’s always worth checking your policy or insurer to make sure.
What’s not typically included
- Expenses that your carrier is already responsible for covering
- If your airline has offered you an alternative flight or transport and you didn’t take it
- Delays or rescheduling by the carrier due to operational reasons, mechanical issues, or maintenance
- If you’ve already claimed the same costs under another part of your policy
- If the airline or tour operator has refunded or reimbursed you
- If you simply change your mind or decide you don’t feel like travelling
- Claims where you didn’t allow enough time for check-in or transit
- Delays or missed flights because you were stuck in traffic on the way to the airport
- Travelling to or staying in a country with a ‘Do not travel’ warning from the Australian government
- Delays caused by foreseen events that were expected or widely reported in the media or by the government
How do I choose travel insurance with cancellation and delay cover?
When shopping around for travel insurance and looking out for cancellation and delay cover, it’s worth keeping a few things in mind.
Level of cover
It makes sense to think about how much protection you want. Are you happy with a basic policy that covers the essentials, or do you want a mid-tier or comprehensive plan that’s got all the bells and whistles?
- Basic cover is typically good for budget trips or domestic travel. It can cover the basics but might leave you hanging for extras like cancellation or delay cover.
- Mid-tier cover is a step up, with more inclusions and higher claim limits. Some policies could have coverage for cancellation and travel delays.
- Comprehensive cover has the works! This is typically great for international trips or if you’re splashing out on a fancy holiday. It’ll usually cover cancellation, delays, medical expenses, and more.
A good way to think of it is the more you pay, the more protection you get.
Additional features
If you’re going extra on your trip with adventure and fun activities, then it’s worth thinking about some extra cover.
- Winter sports cover: If you’re hitting the slopes in Niseko, this is a great idea. Winter sports cover can take care of things like ski equipment damage and snow-related cancellations.
- Rental car excess: Planning to hire a car and go full speed in the autobahn? Rental car excess can save you a fortune if you have a bingle.
- Adventure activities: Love a bit of adrenaline? It’s smart to check whether your policy covers things like scuba diving, bungee jumping, or zip-lining.
- Cancel for any reason cover: This one’s rare in Straya, but if you can find it, it’s handy for those ‘just in case’ moments. Unlike standard cancellation cover, this additional cover – usually on top of comprehensive travel insurance policies – is more flexible and doesn’t exclude things like changing your mind. However, it’ll only reimburse a portion of your prepaid travel costs. There are a few catches – you might not be able to cancel within 48 hours of departure, for instance, and you might need to buy it a certain number of days before the start of your trip.
Policy benefit limits
It’s a good idea to check how much you can actually claim. Some policies boast unlimited cancellation cover, which sounds great, but others might cap it at a specific amount – say $15,000.
If you’re planning a big-ticket trip, like a European adventure or a luxury cruise, it’s worth making sure the policy limit is high enough to cover your prepaid flights, accommodation, and activities. Otherwise, you could end up out of pocket if you unfortunately need to cancel.
Helpful tip
What’s covered can differ depending on the policy and insurers. So, do yourself a favour and give the product disclosure statement (PDS) a good squiz for the full rundown, and check the target market determination (TMD) to make sure you’re eligible.
Don’t forget to eyeball the policy-specific exclusions, too – those little details can sneak up on you and can vary a lot between insurers.
If you’re planning to hit the brakes on your trip, take a sec and give your insurer a buzz. That way, you’ll know exactly what’s in and out of bounds, so you’re not left stranded without cover.
Adrian Bennett
General Manager for General Insurance
How do I make a travel insurance claim with cancellation and delay cover?
Find out what’s going on
If your flight’s delayed or cancelled, the first thing to do is suss out the reason and how long the delay might be – especially if it’s looking like more than the number of hours stated in your travel insurance’s policy on travel delays. This info will come in handy if you need to make a claim or chase up a refund.
Get a paper trail
Head to the airline’s service desk and ask for written proof of why your flight was delayed or cancelled. If it’s due to bad weather or another covered event, it’s worth making sure they spell that out as you’ll likely need this for your travel insurance claim.
Ask for a refund or reschedule
Before making an insurance claim, you’ve got to try getting a refund or rescheduling your flight through the airline or transport provider. Keep all receipts and documents as proof you gave it a crack – without them, your claim could hit a snag.
Get your ducks (docs) in a row
If you’re still out of pocket after chasing compensation, you can lodge a claim with your insurer. The more evidence you provide, the quicker your claim can likely be processed. So, it’s worth keeping these handy:
- medical certificates or hospital admission forms
- police reports (if something’s been nicked or there’s been an incident)
- reports from your airline or cruise company
- bank or credit card statements
- receipts and invoices for any prepaid bookings.
Ready to cover your next trip – rain, hail, or airline fail?
We all know that even the best-planned trips can hit a few bumps – and hey, sometimes that’s part of the adventure! But when cancellations or delays pop up, having adequate travel insurance means you’re not left high and dry. Whether it’s a minor hiccup or a major detour, being covered can help you save time, get some of your hard-earned money back, and dodge a whole lot of stress.
iSelect can help you compare travel insurance with cancellation and delay cover. Explore travel insurance options that suit the way you wander – without the menty-b, of course!
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