The Key Differences Between Trip Cancellation and Trip Delay Coverage: Why You May Need Both

Discover how these two key travel insurance benefits protect your plans and your wallet—before and during your trip.

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Trip Delay and Trip Cancellation Coverage Explained
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Travel insurance can be a lifesaver when the unexpected happens—but let’s face it, the terminology can be confusing. If you've come across terms like trip cancellation and trip delay coverage and aren’t sure what they mean or how they differ, you're not alone.

Here’s a friendly guide to help you understand the difference, so you can feel more confident choosing the right travel insurance coverage and why you may want to include both for your next adventure.

What is Trip Cancellation Coverage?

Trip cancellation coverage protects the money you’ve invested in your trip before you even leave home. If something unforeseen happens and you have to cancel your travel plans for a covered reason, this benefit can reimburse your prepaid, non-refundable expenses—like flights, hotels, tours, or cruise bookings.

Common covered reasons include:

  • You or a close family member gets seriously sick or injured
  • A natural disaster impacts your home or travel destination
  • Your travel supplier (like an airline or cruise line) goes bankrupt
  • A death in the family
  • Mandatory jury duty or job loss

For example, if you book a Caribbean cruise and a hurricane hits the port a week before your trip, trip cancellation insurance could help you recover your costs. (As long as the policy was purchased before the storm was named.) Check out our recent blog about travel insurance for hurricane season.

Keep in mind, this benefit only applies to cancellations for reasons listed in your policy. For even more flexibility, some plans offer a Cancel for Any Reason (CFAR) upgrade, which lets you cancel for nearly any reason and still receive partial reimbursement.

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Trip Delay

What is Trip Delay Coverage?

Trip delay coverage kicks in once your trip is underway. If you experience a significant delay due to a covered reason—like a weather-related flight cancellation or a mechanical issue with your plane—this benefit can reimburse the expenses you incur while waiting.

Think meals, hotel stays, transportation, and even basic essentials like toiletries or a change of clothes if your bags are delayed.

Let’s say your connecting flight is delayed by 10 hours due to a snowstorm. You end up booking a hotel room for the night and grabbing dinner at the airport. Trip delay coverage can reimburse you for these out-of-pocket expenses, as long as the delay exceeds the time threshold set in your policy (typically 6–12 hours).

To file a claim, you’ll need to keep receipts and obtain documentation from your airline or travel provider confirming the delay.

PLEASE NOTE: Guidelines may have changed since this was published. Before traveling, you should always check your destination's travel requirements. Countries may have their own entry and exit requirements. Additionally, always check for travel advisories in the area to which you are traveling. Refer to https://www.cdc.gov/ and https://travel.state.gov/content/travel.html for up-to-date information and guidelines.