Key takeaways
- Cancellation cover reimburses prepaid non-refundable costs.
- Covered reasons are listed in the PDS — not all cancellations qualify.
- Buy cover when you book to maximise cancellation protection.
Cancelled flights, illness before departure, and family emergencies can cost thousands in lost deposits. Cancellation cover reimburses prepaid expenses when insured events occur.
On this page
What cancellation covers
Typically: sudden illness or death of you or a close relative, natural disasters at destination, jury duty, redundancy. Self-cancelled trips for change of mind are generally excluded unless you buy optional 'cancel for any reason' cover where offered.
Cover limits and timing
Cancellation limits should match total prepaid trip cost — flights, hotels, tours. Buy insurance soon after booking; some benefits reduce if purchased close to departure.
Delays and interruption
Travel delay cover pays for meals and accommodation when flights are delayed beyond a threshold. Trip interruption covers cutting a trip short due to insured events.
General information only — not personal financial advice. Consider your own circumstances and read the Product Disclosure Statement (PDS) before purchasing any policy. Moneyhero may earn referral fees from some providers when you switch through us; this does not change how results are ordered. How we compare
Frequently asked questions
Cancellation and delay cover — qualifying reasons, airline credits, and how to document a claim.
Can I cancel my trip for any reason and claim travel insurance?
Standard Australian travel insurance requires a specific covered reason (illness, death, disaster) to pay a cancellation claim. 'Change of mind' is not a covered reason. CFAR extensions are rare in Australia; most claims require a documented, specific covered event.
What if my airline cancels the flight rather than me cancelling?
If the airline cancels the flight, you are entitled to a refund (or rebooking) under Australian Consumer Law. Travel insurance steps in for additional costs — accommodation, rebooking fees, alternative transport — that the airline does not cover. Claim the airline-provided remedy first, then the residual from travel insurance.
How does the insurer verify a cancellation claim?
You will need to provide the reason for cancellation with supporting documentation: a medical certificate from a treating doctor, a death certificate, redundancy letter, or official notice as applicable. Keep original booking confirmations, receipts, and refund or credit correspondence from airlines and accommodation providers.
Is travel delay cover worth paying for?
Travel delay benefits are typically modest — $200–$400 per claim — and activate only after a minimum delay threshold. The primary value of travel insurance is medical and cancellation cover; delay benefits are secondary. Compare total policy value rather than individual benefit sections when choosing a policy.