The primary purpose of trip cancellation insurance is to reimburse travelers for nonrefundable costs such as airline tickets, hotel stays, cruises, and tour bookings. Because many travel providers have strict "100% penalty" policies, a sudden cancellation without insurance often means losing the entire investment. This insurance allows travelers to recover their funds and potentially rebook their trip at a later, more stable time. Common Covered Reasons
Standard policies do not cover cancellations for simple convenience or a "change of heart". Instead, they typically specify a list of "covered reasons" that trigger reimbursement: trip cancellation insurance
Serious illness, injury, or death of the traveler, a companion, or a close family member. The primary purpose of trip cancellation insurance is