Can You Get A Refund On Travel Insurance?

Sometimes things don't go as planned and we find ourselves needing to cancel. Life happens and events we looked forward to for months can go down the drain. Unfortunately, travel plans aren't immune to cancellation, even when you've booked the room, gotten the plane tickets, and meticulously scheduled excursions. Travel insurance is worth it in these moments and will help you get most of your money back, but what about the costs of travel insurance?

Maybe you don't need to cancel your trip, but you want to switch travel insurers instead. You could've found a better plan for a better price, or received a stellar recommendation from someone you trust. Before you go and cancel your policy, you ask yourself whether or not you can get a refund on the travel insurance itself. The answers to your questions depend on your travel insurance plan and when exactly you're trying to cancel. Getting reimbursement is possible, but it's all about timing.

When you can get a refund

Most travel insurances have a money-back guarantee period that lasts for about 10 to 14 days beginning when you purchase the policy. They do this so you have extra time to review their policies, ask questions, and understand the fine print. If you decide to cancel for whatever reason during this time frame — be it needing to cancel the trip entirely, realizing the plan doesn't offer the coverage you want, or finding a new travel insurer that fits your needs better — you're guaranteed a full refund. If you need to cancel outside of this time frame, you still can, however, you won't be able to get a refund on your travel insurance policy.

Some people may think they can create a loophole by factoring in the cost of travel insurance as part of their trip costs, and while it's a good idea, it doesn't usually work. Travel insurance companies make money from their policies and would not cover the costs of their services were you to cancel your trip for whatever reason.

What cancel for any reason really means

Most policies do have exceptions when it comes to refunds. Many times, this includes the death of a family member, natural disasters, and other reasons specified in your plan. If you'd have more peace of mind knowing that you could cancel your policy at any time and at least receive a partial refund, you can look into cancel for any reason benefits (CFAR). Many insurers offer this as an add-on to policies if they meet certain criteria. According to Progressive's website, this enables you to cancel and get "reimbursement on prepaid, nonrefundable costs if you cancel for any reason, even those not typically covered by your comprehensive travel insurance policy."

If you cancel for one of the covered reasons, i.e. a natural disaster, you'll get a 100% reimbursement for your travel costs — but not the cost of insurance. If you cancel for a reason not listed but you purchased CFAR, you may be able to get 50% to 75% of a refund on your travel expenses, but once again, not on the cost of insurance.