Certified Travel Associate Practice

What does Trip Cancellation/Interruption insurance cover?

1. Cost of rental cars due to accidents

2. Reimbursement for medical expenses

3. Cost of forfeited, nonrefundable, payments due to covered reasons

4. Expenses for emergency medical transportation

The correct answer is: Cost of forfeited, nonrefundable, payments due to covered reasons

Trip Cancellation/Interruption insurance is primarily designed to protect travelers from financial losses incurred when they have to cancel or interrupt their trips due to unforeseen circumstances. Specific covered reasons can include illness, injury, natural disasters, or other emergencies that make it impossible to proceed with the planned travel. When a traveler has to cancel their trip or return home unexpectedly, this type of insurance allows for reimbursement of the nonrefundable payments they’ve already made for travel arrangements, such as flights, hotels, or tours, which they would lose if unable to go. This coverage is particularly valuable as it alleviates the financial burden that can arise from significant upfront costs in travel plans. The other choices pertain to different types of insurance coverage. While rental car costs, medical expenses, and emergency transportation might be addressed under separate insurance policies, they are not typically covered under Trip Cancellation/Interruption insurance. Therefore, the correct answer reflects the specific aspect of coverage that relates directly to the cancellation or interruption of a trip.