Direct Travel's Guide to Cancellation Cover

What is cancellation cover and why might you need it?

Cancellation cover may help you recover eligible, non-refundable holiday costs if an unexpected event means you have to cancel your trip before departure.

The cover available (including the amount you can claim, the excess and the reasons accepted) depends on the policy and cover level you select. Some policies or cover levels may not include cancellation cover, so check the details carefully before buying.

Key points to remember:

• Cancellation cover only applies if it is included in your chosen policy.
• You must be cancelling for one of the specific reasons listed in the relevant Policy Wording.
• Cover limits, excesses and covered reasons vary between products.
• Only costs that cannot be recovered from your airline, accommodation provider, tour operator, or another source can normally be considered.
• The cancellation limit should be sufficient for each traveller’s share of the non-refundable holiday costs.
• You should tell your travel providers as soon as you know that you need to cancel.
• If your claim relates to illness or injury, medical evidence will normally be required.

Cancellation cover cannot make up for the disappointment of missing a holiday, but it may help with eligible costs that you cannot recover elsewhere.

When does cancellation cover start?

The start date depends on the type of policy and product selected. Arranging travel insurance shortly after booking your holiday can help reduce the amount of time your booking is without cancellation cover.

For Single Trip policies, cancellation cover begins when you book your trip or purchase the policy, whichever happens later. With Annual Multi-Trip insurance, cancellation cover may not begin until the start date shown on your policy documents.

When might cancellation cover apply?

The precise reasons vary, but depending on the policy selected, cancellation cover may apply following:

• The unexpected death, serious illness or injury of you, a travelling companion, close relative or someone you planned to stay with.
• You or a travelling companion being called for jury service or required to attend court as a witness.
• You or a travelling companion being made involuntarily redundant.
• Serious damage to your home that requires your presence.
• A qualifying individual quarantine.
• The cancellation of authorised leave for certain emergency service, government or armed forces personnel.
• Required travel documents being stolen and not replaced in time.
• Certain severe weather, natural disaster or transport disruption circumstances.

Some policies may include other covered reasons. Conditions will apply to each one, so the list in your own Policy Wording takes precedence.

If you need to cancel because of illness or injury, contact a medical practitioner as soon as possible. Depending on the policy, they may need to confirm that the condition prevents you from travelling before you cancel the trip.

When might cancellation cover not apply?

Cancellation cover will not normally apply if:

• You simply change your mind or no longer want to travel.
• The reason for cancelling is not listed in your Policy Wording.
• You knew about the event or circumstances when you booked the trip or purchased the insurance.
• Your claim relates to a pre-existing medical condition that was not declared and accepted where required.
• You failed to obtain the passport, visa or documentation required for your trip, unless your policy specifically provides cover for the theft of those documents.
• Your costs can be refunded or recovered from your travel provider, card provider or another source.
• You do not follow the conditions set out in the policy.

Changes to Foreign, Commonwealth & Development Office travel advice are treated differently across the available products. Some policies may provide cancellation cover in limited circumstances, while others do not treat a change in travel advice as a covered reason. Always check the relevant wording rather than assuming that a change in advice will be covered.

How much cancellation cover do I have?

Cancellation limits vary between policies and cover levels. The amount available will be shown in the cover summary, Policy Wording, and your Policy Certificate.

Limits are generally shown for each insured person. An excess may also be deducted from each person’s claim, although some products offer a reduced or nil excess.

When comparing policies, consider each traveller’s share of:

• Flights or other transport
• Accommodation
• Package holiday costs
• Excursions or activities paid for in advance
• Other non-refundable bookings

Exactly which costs can be claimed will depend on the policy selected. Some products may provide higher cancellation limits or the option to purchase additional cancellation cover. Any increased cover will have its own eligibility requirements, limits and terms.

What should you do if you need to cancel?

Contact your airline, tour operator, accommodation provider, and any other relevant travel suppliers as soon as you know that cancellation is necessary.

Waiting could increase the cancellation charges or reduce the refund available. Some policies will only consider the costs that would have applied when you first became aware that you needed to cancel.

You should also keep:

• Your original booking confirmations and invoices
• Written confirmation of the cancellation
• Details of refunds offered or received
• Receipts for any other eligible costs
• Medical certificates or other evidence supporting the reason for cancellation

Claims should be made using the contact details shown in your own policy documents, as claims providers differ between products.

Check your cover before you buy

Cancellation cover can vary considerably. Before purchasing a policy, check:

• Your original booking confirmations and invoices
• Written confirmation of the cancellation
• Details of refunds offered or received
• Receipts for any other eligible costs
• Medical certificates or other evidence supporting the reason for cancellation

You can find the latest documents on our Policy Wordings page.

If you are yet to arrange your travel insurance, you can get a quote online or call our team on 0330 880 3600. We’re open Monday to Friday 9am to 5pm, and Saturdays 8.30am to 4pm.

Please read the Policy Wording for your selected policy to understand the cover available.