When you purchase a plane ticket, you often have the option to add on travel insurance. This insurance can provide coverage in case you need to cancel your trip for covered reasons. However, if you end up not needing the insurance, you may wonder if you can get a refund on the premium you paid.
What is ticket insurance?
Ticket insurance, also known as travel insurance, provides financial coverage in case you need to cancel or interrupt your trip for covered reasons. It can reimburse you for non-refundable costs such as your plane tickets, hotel reservation, tours and more. Travel insurance can also provide coverage if you experience delays, damage to baggage or need medical assistance while traveling.
There are a few main types of losses that travel insurance protects against:
- Trip cancellation – If you need to call off your trip due to illness, injury, death of a loved one or other covered reasons, insurance can reimburse your non-refundable costs.
- Trip interruption – If you need to cut a trip short for a covered reason, insurance provides reimbursement for the unused portion of your trip.
- Travel delays – Missed connections, canceled flights and other delays are covered up to the limits in your policy.
- Baggage issues – Lost, damaged or stolen luggage is covered, typically up to a set amount.
- Medical emergencies – If you get sick or injured on your trip, insurance can cover costs for treatment and medical transportation.
Most policies have a list of covered reasons for cancellation or interruption. These often include:
- Illness, injury or death of the policyholder, a family member or traveling companion
- Severe weather or natural disaster
- Terrorist event
- Jury duty or military duty for an unexpected call-up
- Home emergency like a burglary or major damage
- Traffic accident en route to departure
- Employment termination
The specifics will depend on your chosen insurance company and policy. Be sure to read the terms closely when purchasing.
Can you get a refund on unused ticket insurance?
In most cases, if you end up not needing the ticket insurance you purchased, you can cancel it for a full refund within 10-14 days as long as your trip hasn’t started yet and you haven’t filed a claim. This initial period is known as the “free look” window where you can back out penalty-free if you change your mind.
However, after the free look period ends, you usually cannot get a refund on the insurance premium itself if you haven’t actually used the policy and filed a claim. Insurance companies do not offer prorated refunds if you decide partway through that you don’t want the coverage anymore.
The reason is that insurance relies on having a large pool of premiums to cover the smaller number of claims. If everyone could get a refund whenever they wanted, the model would quickly fall apart.
When can you get a refund on ticket insurance?
There are a couple scenarios where you may be able to get at least a partial refund on your unused travel insurance:
- Within the free look period – As mentioned above, most insurance providers give 10-14 days to review your policy and cancel for a full refund if you have not started your trip or filed a claim.
- If the trip is canceled before you buy insurance – If your trip gets canceled or rescheduled prior to purchasing insurance, you can get a full refund since the policy can be voided.
- If you can prove financial hardship – Some insurers may provide a partial refund if you can show that you face financial hardship and can no longer afford the policy premium.
Outside of those situations, however, it is very difficult to get any type of refund on unused ticket insurance. The general rule is that the premium is non-refundable.
Strategies to avoid losing your premium
If you want to avoid paying for coverage you end up not using, there are a few strategies to consider:
- Purchase insurance as close to your travel dates as allowable. This minimizes the risk of cancelling the whole trip prior to departure.
- Look for policies that allow free cancellation up to 24 hours before departure. This gives flexibility in case plans change.
- See if you can extend your “free look” window. Some providers allow 15, 30 or even 60 days.
- Check if your credit card provides basic travel insurance. You may already have coverage for some costs.
- Consider travel insurance alternatives like travel vouchers that you can apply to future trips.
Taking advantage of a longer free look window is one of the best options since it allows you to wait as long as possible before committing to the insurance purchase. Just be mindful of any administrative processing time so that coverage kicks in before departure.
What costs are refundable?
Again, the travel insurance premium itself is generally non-refundable outside the free look window. However, if you actually use your insurance by filing a claim, you can get reimbursed for many related costs depending on your policy benefits, such as:
- Plane tickets, hotel, tours and other prepaid expenses if your trip is canceled for a covered reason.
- Unused portion of trip costs if you have to cut your travel short due to illness or other covered circumstance.
- Added expenses like hotel and meals if your return is delayed from a covered situation.
- Baggage replacement if your luggage is lost, damaged or stolen.
- Medical treatment costs if you get sick or injured while traveling.
The amount you can claim will be subject to your policy limits and any applicable deductibles. But when you do file a claim, the insurer is obligated to reimburse you according the contract terms for any eligible expenses.
Tips for getting a refund
If you find yourself needing to request a refund on unused ticket insurance, keep these tips in mind to have the best chance of success:
- Act quickly – Request a cancellation within the free look period, ideally within the first few days of purchasing.
- Review the terms – Be familiar with the refund conditions outlined in the policy to cite the relevant provisions.
- Provide documentation – Have copies of your trip booking, insurance certificate and any other required paperwork.
- Follow up politely – If denied at first, politely ask for a supervisor to escalate the request.
- Appeal reasonableness – Politely emphasize that refunding seems reasonable in your situation.
Also explain any hardship that losing the premium would cause. With patience and persistence, you may convince them to make an exception.
Common reasons for refund denial
While possible to get a travel insurance refund with the right approach, some common reasons that requests are denied include:
- Outside the free look period – Most policies prohibit cancellations after 10-14 days.
- Trip has started – Refunds are usually only allowed before travel begins.
- Claim has been filed – Refunds are not provided after making a claim.
- Non-refundable premium – The insurer follows a no-refund policy outside the free look window.
- Lack of qualifying reason – No evidence provided of financial hardship, trip cancellation before purchase, etc.
Understanding these restrictions can help set proper expectations. But it can still be worth asking politely, particularly if you are facing financial difficulties.
Should you purchase ticket insurance?
Despite premiums being non-refundable in most cases, trip insurance can still provide valuable protection against unexpected losses from cancelled travel, delays, lost baggage, and medical emergencies. The right insurance can reimburse thousands in expenses if a problematic situation arises.
Some factors to consider when deciding about insurance include:
- Cost of trip – The more you spend, the higher the potential value.
- Risk tolerances – How comfortable are you taking a financial loss if plans change?
- Existing coverage – From credit cards, travel vouchers, etc.
- Policy exclusions – Do they cover your likely risks?
- Health factors – Age, condition and stability can influence risk.
In general, insurance makes the most sense for expensive international trips where large non-refundable costs are at stake. For domestic trips or those with flexible cancellation policies, insurance may be less beneficial. But for major overseas excursions, protection can provide great peace of mind.
Key takeaways
- Most travel insurance premiums are non-refundable outside the initial 10-14 day free look period.
- You can sometimes get a full refund if canceling within the free look window.
- Partial refunds may be possible in limited cases like financial hardship.
- Refunds are only issued if a claim has not been filed.
- Persistence and patience can sometimes lead to a successful refund request.
- Insurance still provides protection against major losses from cancelled or interrupted trips.
While certainly not guaranteed, getting a refund on unused ticket insurance is sometimes possible with the right approach under specific circumstances. Understanding the typical restrictions can set expectations accordingly.
Conclusion
Purchasing travel insurance is always a bit of gamble since you hope to not need it but want the reassurance it provides. Given the upfront cost, getting a refund when plans change can seem fair and reasonable. However, outside select scenarios like the free look window, most insurers follow firm no-refund policies.
This prevents buyers from taking advantage by cancelling when convenient. It also helps insurers balance financial risk across their pool of policyholders. So while certainly worth politely asking, managing expectations around standard non-refundable practices is wise.
That said, travel insurance can still deliver substantial value if any covered incidents do arise. The key is weighing the cost versus potential benefits for your particular trip and risk factors. With smart shopping and careful trip planning, you can often minimize the chances of losing your premium while still securing valuable protection.
