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Writer's pictureDan Donnelly

Why Trip Cancellation, Trip Interruption, and Baggage Insurance are Essential for Every Traveller

A travelling family

🌍✈️ Have you considered Trip Cancellation, Trip Interruption, or Baggage Insurance for your next trip? If not, it might be time to rethink your travel plans. Even the most seasoned travellers know that no matter how meticulously planned your itinerary is, life can throw a curveball at any moment. Whether it's an unexpected illness, family emergency, or other unforeseen circumstances/events, travel insurance ensures you don’t lose the money you’ve invested in your dream getaway.


While TIO’s top-tier refund policy protects you by returning the all unused portion(s) of your medical policy should you need to cancel or return home early, what about your other non-refundable expenses like flights, hotels, or excursions? That’s where Trip Cancellation, Trip Interruption, and Baggage Insurance come in, offering financial protection and peace of mind for every traveller.


 

What is Trip Cancellation and Trip Interruption Insurance?

These two optional types of insurance protect the money you’ve invested in your trip should an unforeseen circumstance/event cause your trip to be cancelled or interrupted.


 

1. Trip Cancellation Insurance

Trip Cancellation Insurance protects you before your trip begins. If you need to cancel your trip due to an unforeseen circumstance/event, including but not limited to, illness, a family emergency, a natural disaster, pilot strike etc., this insurance reimburses all of your non-refundable expenses. This can include, but not limited to, flights, accommodations, and any pre-paid tours or activities.


For example, if you book a flight and hotel six months before your trip, but a week before departure you fall ill and can’t travel, Trip Cancellation Insurance ensures you don’t lose the money you’ve already spent by reimbursing you for those costs.


It’s important to purchase Trip Cancellation Insurance as early as possible. If an unforeseen circumstance/event becomes a “known” risk before you buy this optional insurance (such as a travel advisory or impending natural disaster), your coverage won’t apply. That said, purchasing early maximizes your protection from the unexpected. This is because if the policy is purchased prior to the event becoming ‘known’, the now known event, will be covered and benefits payable, as the event was ‘unknown’ when the policy was purchased.

 

Pricing

A Trip Cancellation insurance policy is set up to protect a specific sum insured. The amount insured would typically be the total cost of your trip (i.e. all non-refundable costs made for the trip). This could include, but not limited to, airfare, hotel/rental, transportation, excursions, etc. Should you insure the total cost of the trip, in the event that an unforeseen circumstance/event causes you to cancel your trip, and your claim is approved, you would receive compensation for that total sum insured; ensuring you have not lost all expenses put into your trip.


Travellers are welcome to lower the premium of this optional insurance by insuring a lower sum. That is, should you choose to only insure the cost of the airfare and, for example, not the cost of the hotel. Should you decide to only insure a portion of the trip, should a claim be made, you will only be reimbursed for that portion that was insured.


In summary: the price is based on the total sum insured, which in the event of an approved claim, will be paid out to the insured person(s).

 

 

2. Trip Interruption Insurance

While Trip Cancellation covers you before your trip, Trip Interruption Insurance protects you once your trip has begun. If an emergency occurs during your trip, including but not limited to, a medical issue, family emergency, or severe weather event, this insurance reimburses your non-refundable costs and the expenses to return home.


Even better, Trip Interruption Insurance also covers the cost of resuming your trip once the emergency is over. So, if you need to return home halfway through a multi-country tour but can continue later, Trip Interruption Insurance will cover both your early return and your trip back to your original destination.


Pricing

Trip Interruption Insurance can be added to your policy for just $40! 

This is a flat fee—no tax, no age limits, no trip duration limits, no sums insured, and no deductible. That means zero out-of-pocket costs if you need to make a claim.


 

When to Purchase Trip Cancellation and Trip Interruption Insurance

The earlier you purchase, the better. Once an event becomes a "known" risk, like a hurricane or travel advisory, it can no longer be considered unforeseen, and thereby your policy won't cover that circumstance/event. Buying these insurances early ensures maximum coverage against life's unpredictable moments.


 
Baggage coverage / Luggage protection

What About Baggage Insurance?

Lost or damaged luggage is one of the biggest stressors travellers face, especially when heading out on extended trips. Baggage Insurance helps protect your personal belongings, in the event that they are lost, stolen, or damaged during your travels.


Whether your luggage gets misplaced during a flight or items are damaged in transit, this coverage ensures you’re not stuck paying entirely out of pocket to replace your essential items. Baggage Insurance can cover up to $500 for your personal belongings, whether you’re traveling by air, staying in a hotel, or even en route to your destination.


 

Why Should You Consider These Optional Insurance Plans?


  • Comprehensive Coverage: With Trip Cancellation, Trip Interruption, and Baggage Insurance, you have all your bases covered. These plans protect your trip investment and ensure that you’re not left scrambling for solutions if an unforeseen circumstance, event, or emergency occurs prior to or during the trip.

  • Affordable Peace of Mind: Considering the potential losses if you need to cancel or cut your trip short, this is likely to be a much smaller price to pay for peace of mind. Don’t forget, adding Trip Interruption Insurance to your policy costs just $40 (no tax or limits).; depending on where you’re travelling the flights to return home could be in the thousands.

  • Flexible Options:

    • Bundle all three coverages as part of a 'Non-Medical Package'

    • Purchase the Trip Cancellation/Trip Interruption duo

    • Opt for Trip Interruption Insurance as a stand-alone product for just $40.


How These Insurances Help You


  • Protect Your Financial Investment: Trips are expensive, and no one wants to lose thousands due to an unforeseen circumstance/event. These insurances reimburse you for non-refundable expenses, saving you from potential thousands in financial losses.


  • Flexibility During Emergencies: Whether before or during your trip, you can manage emergencies without the added stress of losing money or scrambling to figure out how to get home.


  • Peace of Mind: Knowing you’re covered for unexpected events allows you to prepare for your trip without additional stressors as well as enjoy your trip to the fullest, free from worry about any potential mishaps.


 
Peace of mind

Protect Your Trip, Your Health, and Your Peace of Mind

Travel is meant to be a thrilling adventure, but unexpected events can turn a dream trip into a stressful ordeal. That’s why Trip Cancellation, Trip Interruption, and Baggage Insurance are vital components of any traveler’s plan. When paired with a TIO’s travel medical policy you can rest assured that you have coverage on all fronts no matter what happens prior to or during your trip.


Protect your trip, your investment, and your health with TIO’s comprehensive coverages so you can focus on making memories, and not managing mishaps. Don’t let the unpredictable ruin your trip. 


Get in touch or call us toll-free at 1-800-550-1295 to learn more or get a free quote and enjoy peace of mind. Let TIO keep you protected on your next trip.

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