Travel insurance is a cornerstone of peace of mind for travellers, offering financial protection against unforeseen disruptions. While cancellation insurance often takes centre stage, it’s important to consider the broader value of full-trip coverage. Beyond just covering non-refundable costs, full-trip coverage ensures a more comprehensive safety net, reducing potential financial risks for travellers.
Here’s a closer look at why full-trip coverage matters and the potential risks of under-insuring.
While many policies cover cancellation fees, curtailment—ending a trip early—can often be even more costly. Common scenarios include:
Unexpected Illness or Family Emergencies: Travellers may need to return home early due to illness, injury, or the death of a loved one. This often involves additional costs for return travel, unused accommodation, and prepaid activities.
Cruise Disruption: If a traveller must leave a cruise mid-journey, they may forfeit the non-refundable portion of the cruise, along with related accommodation or prepaid excursions.
Rebooking Premium Fares: For premium airfares, such as business or first class, while the base fare may be refundable, travellers may face fare differences if the original booking class is unavailable.
Curtailment costs can add up quickly and are often overlooked, making comprehensive coverage a vital part of protecting travellers from unforeseen expenses.
At claims time, travel insurance policies will focus on non-refundable costs. While premium airfares may offer more flexibility, other trip components—like accommodation, tours, and activities—may not. Comprehensive coverage ensures travellers aren’t left out of pocket for these components in the event of a trip disruption.
When travellers are fully covered, they’re more likely to feel confident in their travel arrangements, knowing they have support if something goes wrong. This can lead to stronger relationships with your customers, as they recognise the value of being protected for the entirety of their trip.
Full-trip coverage provides value for all stakeholders:
Travellers: Comprehensive protection means fewer financial surprises during unexpected situations.
Distributors: Addressing potential gaps in coverage upfront reduces the risk of customer dissatisfaction or disputes at claims time.
Insurers: Comprehensive coverage supports consistent claims processes and reduces requests for ex-gratia payments due to under-insurance.
The decision to recommend full-trip coverage ultimately comes down to ensuring customers understand the full scope of potential risks. When travellers are informed about what full-trip coverage entails—including curtailment and non-refundable costs—they can make decisions that align with their needs and risk tolerance.
A Broader Perspective on Travel Insurance
Full-trip coverage isn’t just about avoiding financial risk; it’s about offering travellers peace of mind. By understanding the nuances of curtailment, non-refundable costs, and premium fare complexities, distributors can provide the information travellers need to make confident, well-rounded decisions about their coverage.
Just as you wouldn’t underinsure your home, it’s important to ensure your travellers understand the value of protecting their entire trip investment. When purchasing cover, make sure to select the full trip value—not just the non-refundable portion—to ensure comprehensive protection.
For more information on the benefits of comprehensive travel insurance or to explore examples of how full-trip coverage protects customers, feel free to reach out.