Why Take Out Trip Cancellation Insurance?

Trip cancellation insurance is an ideal preventive measure to guard against the unexpected and minimize the financial risks associated with organizing trips. It's a safety net that can be especially useful for expensive trips or when unforeseeable personal or professional circumstances may arise.

Belgians have a high holiday budget

The Redion Summer Barometer is an international survey carried out every year by Ipsos for Redion. The survey shows that most Belgians go on holiday or short trips abroad or within Belgium several times a year. For summer holidays alone, the average travel budget for a Belgian family stands at 2,736 EUR (2024 Summer Barometer)!

Belgians travel several times a year

Belgians tend to vary their types of trips considerably depending on the season:

- Ski holidays mainly take place during spring or Christmas break, and many holidaymakers drive there.
- 7 out of 10 Belgians spend their summer holidays in Europe, preferring France, Spain, or Italy, and more than 45% of them travel by car.
- For more distant destinations, Belgians book air travel (37%) and possibly rent a vehicle once there.
- The shoulder seasons are a preferred time for booking short breaks or city trips, e.g. to Barcelona, Rome, Paris, London, and many other European cities. During summer, 28% of Belgians go off to explore cultural cities.
- Finally, nearly 20% of travelers decide each year to fly to far-off and/or more exotic destinations (Thailand, the Dominican Republic, the USA, etc.) and set aside a significant budget for their trip, matching the type of stay.

The usefulness of trip cancellation insurance

Trip cancellation contracts, also called "cancellation insurance," are designed to protect travelers' travel budget in the event of unforeseen circumstances preventing them from leaving. This type of contract provides peace of mind by guaranteeing partial or full reimbursement of costs incurred for non-refundable bookings, such as plane tickets, hotel stays, or travel packages.

One of the main benefits of this contract is to cover unforeseen situations such as an illness, an accident, or a death in the family, which could occur before departure. In these cases, cancellation insurance steps in to prevent the traveler from suffering a significant financial loss. Some contracts also include clauses for other reasons, such as professional complications (dismissal, transfer) or major emergencies.

What trip cancellation insurance covers

Trip cancellation covers, among others, the following events:

• Illness, accident, or death of the insured person, the insured person's spouse, any family member of the insured person usually living under the same roof, or relatives of the insured person up to and including the 3rd degree of kinship. Illness, accident, or death of the person with whom the insured person was going to stay free of charge abroad, or of the caretaker who was going to look after your minor children or one or more people with a disability (beneficiaries) during your trip.
• The medical impossibility of undergoing the vaccinations required for the trip.
• Complications or issues with the pregnancy of the insured person or of a family member up to the 3rd degree.
• The pregnancy of the insured person or of the travel companion.
• The economic dismissal of the insured person or their spouse.
• The involuntary unemployment of the insured person or their spouse.
• The withdrawal of leave already granted to the insured person by the employer, in order to replace a colleague.
• The essential presence of the insured person (self-employed or freelance professional) due to the death, accident, or illness of their substitute.
• A new employment contract of at least 3 months.
• The professional transfer of the insured person.
• A summons for humanitarian aid, to appear as a witness or juror before a court, or to complete legal adoption procedures.
• Non-postponable resit exams.
• The divorce or de facto separation of the spouses.
• Significant material damage (+ 2,500 EUR) to the home.
• A home jacking or car jacking of the insured person's vehicle.
• A traffic accident, theft, or fire involving the insured person's private vehicle, resulting in its total immobilization.
• Visa refusal by the authorities of the destination country.
• Theft of the visa or passport needed for the trip.
• The death of the insured person's dog, cat, or horse within 7 days of the departure date.
• The unforeseen eviction from the home rented by the insured person, or the unforeseen eviction from the retirement home of a relative (up to the 2nd degree) of the insured person.
• The runaway, kidnapping, abduction, or disappearance of the insured person, their spouse, or a family member living under the same roof.
• Cancellation of the honeymoon.
• If two people are listed on the travel booking: cancellation by the second person due to an event covered by trip cancellation insurance.
• …

This information is provided for guidance only. For full details of the cover, please refer to the general terms and conditions of the relevant contract.

Also read the article "Illness, the #1 reason for trip cancellation"

Extensions to trip cancellation cover

Some cancellation contracts, such as Redion's annual NoGo contract, also let you take out interesting options such as:

• The "baggage insurance" option covering baggage in case of loss or theft.
• The "Business Travel" extension, which also covers the costs of any trip taken for professional reasons.
• The extension of the coverage ceiling. This lets you cover a higher amount than the base amount provided for in the contract.

Beyond standard trip cancellation cover, the annual NoGo contract also covers unreimbursed costs from changing or modifying a trip (such as changing the destination, duration, or dates of the trip), as well as financial compensation for costs related to interrupting a stay (e.g. when the traveler has to cut their stay short due to a medical problem).

When should you take out cancellation insurance?

It goes without saying that you must always take out trip cancellation insurance before your trip begins. A request for reimbursement of the trip can no longer be activated once the trip has started.

If you have already booked your trip, you can take out a NoGo cancellation contract provided the subscription date and the start date of your cover fall at least 30 days before your departure date.
It is also possible to take out cancellation insurance if you're leaving in less than 30 days. But in that case, the contract must be taken out on the very same day as the trip booking.