What Is Trip Interruption Insurance?

Everyone needs a break to go on vacation, but sometimes, a planned trip doesn’t work out in your favor. 

A trip interruption occurs when unforeseen events, such as a natural disaster, severe weather or a health emergency, disrupt or cut short your travels. 

The last thing you want to worry about when you’re supposed to be relaxing is lost airfare and the cost of prepaid hotels. 

That's where trip interruption insurance comes in to save the day.

Understanding Trip Interruption Insurance

Trip interruption insurance is a type of travel insurance that provides coverage for expenses related to unexpected interruptions or disruptions during your trip. You may be reimbursed for several charges, including: 

• Nonrefundable trip expenses
• Hotel stays 
• Excursion bookings 
• Airport taxi fare 
• Airfare for flight home 

Trip interruption insurance benefits become effective when a traveler departs from their home destination. It's post-departure coverage as opposed to the predeparture protection provided by trip cancellation insurance.

Each insurance policy specifies the circumstances under which the trip interruption benefits will come into effect: 

• Illness 
• Injury 
• A traveler's death 
• A traveling companion's death 
• Terrorist action 
• Medical evacuation (such as during the COVID-19 lockdown) 
• Natural disasters or extreme weather conditions (hurricane, flood or earthquake) 

Trip Interruption vs. Trip Delay vs. Trip Cancellation Insurance

Unlike trip interruption insurance, trip cancellation insurance covers the cancellation of your trip before departure. 

Suppose you're planning a trip to Hawaii, and wildfires spread in the area a week before your scheduled departure. The authorities declare it unsafe for travel. 

In this case, trip cancellation insurance works to refund nonrefundable trip expenses like airfare, car rentals, excursions and accommodation bookings. 

But say you've already landed in Hawaii. You stay for a day or two before the wildfires intensify. 

The authorities issue evacuation orders, and you have to cut your trip short. Here's where trip interruption insurance comes in. 

It reimburses you for the unused portion of your trip. The reimbursed costs for each policy vary. 

Trip delay insurance is effective when a traveler's flight is delayed for reasons that are not their fault. 

Suppose your flight gets delayed because of mechanical issues or weather conditions. You had booked arrangements in Hawaii, such as a zip-lining excursion you missed because of the delay. 

The flight delay will also affect your other arrangements, which you may have to reschedule. Trip delay insurance reimburses you for some or all of the additional expenses incurred resulting from the delay. 

However, trip delay coverage is only applicable if the delay is for reasons beyond the traveler's control. If the delay is because you missed your flight or didn’t arrive at the airport on time, the policy will not cover you. 

What Is Interruption for Any Reason Travel Insurance?

Interruption for any reason (IFAR) travel insurance is usually an upgrade to your trip interruption insurance policy. It lets you cut your trip short for any reason and get a partial refund for unused expenses. 

Insurance companies usually offer this coverage at an extra 3% to 10% of policy cost. IFAR covers up to 75% of the trip costs, depending on the policy. 

If you're planning a vacation, get IFAR within two to three weeks of booking your trip. Most insurers require you to be two to three days into your trip before they activate the coverage.

IFAR is helpful for people with unpredictable work schedules or families with children and elderly relatives who may need unexpected assistance during the trip. 

What Does Trip Interruption Insurance Cover?

Read your trip interruption insurance policy's fine print to understand what it covers.

• Severe weather events: If a flood, earthquake or a similar natural disaster strikes your vacation destination, you can use trip interruption insurance. 
• Bodily injury: If you or a travel companion gets severely injured during the trip, your insurance policy will cover medical expenses and compensate for the unused portion of your vacation. 
• Airline employee strike: Trip interruption insurance also covers expenses if an organized airline employee strike interrupts your travel plans. 
• Terrorism: Some insurance policies cover trip interruptions caused by terrorism. 
• Accidental death: If you or a travel companion dies during the trip, your insurance policy kicks in. 

What Is Not Covered?

Your trip interruption insurance plan may not provide coverage under certain circumstances. 

• Preexisting medical condition: A preexisting condition is not covered if it leads to an interruption of your trip. 
• Personal change in plans: If you change your mind about the trip or cancel it for personal reasons, your insurer will not cover the costs. 
• Acts of war: If civil unrest or war breaks out in your vacation destination, whether declared or undeclared, most insurance policies will not cover the interruption. 
• Long trips: The insurance plan won't cover trips lasting longer than 60 days. 
• Financial insolvency: The insurance policy doesn’t cover trip interruptions because of the financial insolvency of a travel provider, such as a cruise line or an airline. 

If you take a trip against your doctor's advice or engage in acts of self-harm, you will not be covered. Losses resulting from childbirth and pregnancy are also excluded from coverage. 

How Much Does Trip Interruption Insurance Cost?

Most travel insurance policies include trip interruption insurance as part of coverage. They usually cost 5% to 10% of your total trip cost. 

If your travel insurance doesn't include trip interruption insurance, you can purchase it as an add-on. The cost of your travel insurance will vary depending on several factors. 

• Age: The older you are, the more expensive your travel insurance will be. 
• Trip duration: Longer trips typically have higher insurance costs. 
• Destination: Certain destinations may have higher risks or require specific coverage, leading to higher insurance costs. 
• Activities: If you plan to participate in high-risk activities like extreme sports or adventure travel, your insurance costs will increase. 

Suppose you're a 35-year-old planning a two-week trip to Europe. If your vacation costs $10,000, the trip interruption insurance will cost between $500 and $1,000. 

Depending on the insurer, the plan would include trip interruption coverage for up to 150% to 200% of nonrefundable trip costs. You may also get additional coverage, such as $500 for a travel companion's hospitalization and $1,000 for your return flight expenses. 

Pros and Cons of Trip Interruption Insurance

Pros

• Reimburses nonrefundable costs
• Provides peace of mind
• Covers unexpected emergencies 
• Protects against financial loss 

Cons

• Adds to the overall cost of your trip 
• May have exclusions and limitations 
• Only covers specific reasons

How to Get Trip Interruption Insurance

The process of getting trip interruption insurance is the same as any other insurance policy. 

• Check different providers: Narrow your options by researching insurance providers. Look into their reputations and customer reviews. 
• Compare quotes: Provide trip details and insurance requirements to get quotes from different providers. 
• Purchase travel insurance: Select a policy based on your requirements and budget. 
• Add trip interruption coverage: If your plan doesn't include trip interruption insurance, add it as a rider.  

You can also purchase travel insurance through a travel agent. Alternatively, apply for a credit card that offers trip interruption insurance as a perk. 

Compare the Best Trip Interruption Insurance From Benzinga’s Top Providers

Benzinga's top insurance providers offer comprehensive trip interruption insurance with various coverage options.

Enjoy Your Vacation With Peace of Mind 

An unexpected issue during a trip can be a stressful experience, but with trip interruption insurance, you can rest easy knowing you are protected financially. 

A comprehensive trip interruption policy covers everything from medical emergencies and deaths to natural disasters and bodily injuries. It's best to get a travel insurance plan with interruption coverage. 

If you get trip interruption coverage as an add-on, factors like age, travel destinations, trip duration and activities can affect the cost. Compare quotes from different providers before deciding on one.  

Keep in mind that trip interruption insurance is only available for unforeseen events. If you want more flexibility, opt for an interruption for any reason plan. 

Frequently Asked Questions