How to Cancel Travel Insurance Policy and Get a Refund on Premiums

Before COVID-19, my family's annual travel insurance plan covered our frequent travels, including a trip to Hangzhou in December 2019. However, the pandemic has halted our travel plans, making the renewal of our travel insurance less appealing. The situation raises questions for those who had secured travel insurance just before the pandemic, wondering about their options with insurance companies.

The pandemic has indeed shifted consumer behaviour towards travel insurance, with more people recognising its importance amidst travel uncertainties. Those who purchased travel insurance pre-pandemic should contact their providers to explore options like credits, extensions, or adjustments, reflecting the new reality of travel's risks and protections.

Table of contents

• Who buys annual travel insurance?
• Can you get a travel insurance refund?
• What is Cancel for Any Reason (CFAR) Travel Insurance?
• What are the Reasons a Traveller Might Cancel their Travel Insurance Policy?
• What are the 3 Steps to Get a Travel Insurance Refund?
  • #1: Gather all necessary details
  • #2: Contact your insurer via email or fill up an online form
  • #3: Follow up with the insurer until your refund is processed

Who buys annual travel insurance?

Annual travel plans cover multiple journeys taken by the policyholder from the date of inception for up to a year. People who travel often, for either business or leisure (or both), usually find it convenient to own this type of plan. 

Family plans usually cover two adult parents and children. Even if a family were to travel only during the gazetted school holidays, it’s worthwhile to invest in an annual family policy versus buying single-trip plans that only cover one particular trip for a specified number of days. As a rule of thumb, the cost of an annual plan is about the same as four single-trip premiums, with the added bonus of multiple trips within the year covered.

The inconvenience of having to remember to purchase travel insurance for spontaneous long weekend getaways (ah, those good old pre-pandemic days!) to Bali and Phuket has also compelled some people to go for basic annual plans. Furthermore, annual plans offer a straightforward solution to the complications of needing to cancel individual trip travel insurance due to snags in your travel plans. Instead of going through the whole song and dance with your insurer about how to cancel your travel insurance policy and get a refund, you can rest assured knowing your coverage extends to your next trip without any additional fuss.

Annual plans can be as cheap as $368 for an Individual Worldwide plan from Allied World. Of course, if you looking for higher or specific types of coverage (for example, a Winter sports cover) it would come in the form of an additional rider.

If you’re planning a destination wedding (maybe next year?), it’s also worth springing for an annual plan as you may be making several trips. It can also add a rider for overseas wedding coverage. Looking for more annual travel insurance options? Check out this SingSaver blog on the best yearly travel insurance in Singapore.

Can you get a travel insurance refund?

For a policyholder who has purchased a single trip premium, there is no recourse for a refund or cancellation of the premium paid. The plan is still in force though, and is perhaps of some comfort for those who are forced to travel for business or for other important personal reasons.

Adding to this, if your travel insurance policy includes a money-back guarantee or a review period, you’re entitled to cancel for any reason and get a refund within the specified timeframe, provided you haven’t yet filed a claim or started your trip. This flexibility offers policyholders the chance to reconsider their coverage needs without taking a financial penalty. However, cancelling your travel insurance policy after the review period has elapsed means forfeiting the premium.

What is Cancel for Any Reason (CFAR) Travel Insurance?

For additional flexibility, travellers may wish to consider Cancel For Any Reason (CFAR) travel insurance. CFAR travel insurance allows you to cancel your travel plans for reasons outside of the coverage of your travel insurance policy. It is typically offered as an optional add-on when you buy your primary travel insurance. Under CFAR coverage, policyholders may receive a partial refund of their prepaid nonrefundable travel costs. 

However, it's important to note that not all insurers offer CFAR coverage, and most CFAR travel insurance policies have specific timelines for cancellation. For instance, most insurers will not allow you to cancel on the day of your trip, and will require travellers to cancel at least two days before the trip date to qualify for a partial refund. 

Only Singlife and FWD offer coverage for cancellation for any reason, so do read their fine print to find out more details about them.

What are the Reasons a Traveller Might Cancel their Travel Insurance Policy?

Travellers might cancel their travel insurance policy for various reasons, such as discovering that the policy doesn't fully meet their needs. Other common reasons for cancelling a travel insurance policy and getting a refund are changes in personal circumstances, such as adjustments to work schedules, health issues, or other unforeseen personal matters.

For such cases where your reasons for cancelling fall outside what's typically covered by standard travel insurance, CFAR coverage offers the flexibility to cancel your travel insurance policy for nearly any reason, enabling a partial refund of prepaid, nonrefundable travel costs.

What are the 3 Steps to Get a Travel Insurance Refund?

Before initiating the cancellation process, it's crucial to understand your rights regarding travel insurance refunds. Understanding the differences between travel delay, curtailment or cancellation, and potential exclusions in your policy will equip you with the knowledge to navigate the refund process effectively. Here is how to cancel a travel insurance policy and apply for a refund in 3 simple steps. 

#1: Gather all necessary details

For general insurance, most insurers make it easy for you to quote and buy online. Acceptance is also immediate. You’ll find your certificate of insurance is probably a PDF document sent to your email account. Some insurers may follow up with some paper documents snail-mailed to you. 

In any case, make sure you have these policy details ready. You may also wish to download travel advisories, flight cancellation notices, quarantine notices, COVID-19 related announcements and other relevant documents to readily support your case for a refund.

#2: Contact your insurer via email or fill up an online form

Most insurers will require you to formally write in to request a refund, so there is some hoop-jumping involved here. Some insurers have an online portal for correspondence or list an email address for their customer care team. Others don’t, so you would need to contact their hotline to obtain information on how you can submit your written request. 

Expect a long wait time before your call is taken because many people will be in the same boat as you. So try not to procrastinate handling this, or else you might miss the eligible timeline for your refund request.

#3: Follow up with the insurer until your refund is processed

Once you have submitted your request in writing, check that you have received some kind of response from the insurer (even an automated one). If you have, you can rest easy knowing that your submission has been recorded and dated. Otherwise, you might want to contact the customer care team again to follow up.

*This list is non-exhaustive and is correct at the time of writing.

Choosing the right travel insurance is crucial for peace of mind on your journeys. Let SingSaver help you make an informed decision easily by comparing the best travel insurance options available. Find the perfect policy with coverage that fits your need, giving you the freedom to travel worry-free, with the confidence to cancel and apply for a refund if plans change.