Planning a trip is exciting! Booking flights, locking in accommodation, and imagining the good times ahead. But sometimes, plans change. That’s where travel insurance with cancellation cover can help, offering a way to recover some costs if unexpected events disrupt your trip.
Whether it’s illness, extreme weather, or a family emergency, cancellation cover can provide a financial safety net so you’re not left out of pocket. Some insurers have set limits on cancellation cover, while others have customisable limits allowing you to choose your level of cancellation when purchasing to match prepaid travel expenses (hotels, flights, tours). This can mean that you’re not paying extra for cover that you don’t need.
Why consider cancellation cover?
Planning a holiday often means paying for flights, accommodation and tours in advance. With travel costs continuing to rise, those upfront expenses can add up quickly, and cancellation cover can help reduce the stress if something forces you to cancel or rearrange.
It may be worth considering if you:
- Have prepaid flights, accommodation or tours
- Are travelling during peak weather or unpredictable seasons
- Have health considerations for yourself or someone close to you
- Have work or personal commitments that could unexpectedly change
It’s not about expecting something to go wrong, it’s about having a safety net so you can book and travel with greater peace of mind.
Compare Cancellation Coverage
The level of cancellation cover you will have depends on which policy you choose. Most insurers offer different cancellation cover levels and often at very different price points. We've compared the cheapest comprehensive-style policy offered by each insurer to give you a rough idea. To compare coverage and prices for your trip, use our quote function above.
| Insurer | Underwriter | Policy Name | Cancellation | Buy Now |
|---|---|---|---|---|
|
|
HDI Global Specialty SE – Australia
|
Comprehensive
|
Variable Up to $200,000
|
|
|
|
Certain underwriters at Lloyd's
|
Comprehensive
|
Unlimited
|
|
|
|
Europ Assistance Australia Pty Ltd
|
Insure & Go Gold
|
Unlimited
|
|
|
|
HDI Global Specialty SE – Australia
|
Comprehensive Cover
|
Unlimited
|
|
|
|
Europ Assistance Australia Pty Ltd
|
Top
|
Unlimited
|
|
|
|
HDI Global Specialty SE – Australia
|
Comprehensive
|
Variable Up to $200,000
|
|
|
|
Mitsui Sumitomo Insurance Company Limited
|
Gold Plus Cover
|
Variable up to Unlimited
|
|
|
|
Chubb Insurance Australia Limited
|
Ultimate
|
Up to $20,000
|
|
|
|
Allianz Australia Insurance Limited
|
Comprehensive Cover
|
Variable up to $100,000
|
|
|
|
Chase Underwriting Solutions Pty Ltd
|
Comprehensive
|
$20,000
|
|
|
|
Zurich Australian Insurance Limited
|
Comprehensive
|
$10,000
|
|
|
|
Zurich Australian Insurance Limited
|
Premium
|
Variable up to Unlimited
|
|
|
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Zurich Australian Insurance Limited
|
Comprehensive Cover
|
Variable up to Unlimited
|
|
|
|
Zurich Australian Insurance Limited
|
Overseas Explorer
|
Variable up to Unlimited
|
|
|
|
Certain underwriters at Lloyd's
|
Go Ultra
|
Variable up to Unlimited
|
|
|
|
Chase Underwriting Pty Ltd
|
Excel Plus
|
$10,000
|
|
|
|
Guild Insurance Limited
|
Comprehensive
|
Up to $120,000
|
|
|
|
Southern Cross Benefits Limited
|
Comprehensive
|
Variable up to Unlimited
|
|
|
|
Pacific International Insurance Pty Ltd
|
The Works Plan
|
Variable up to Unlimited
|
|
|
|
Certain Underwriters at Lloyds
|
Comprehensive
|
$20,000
|
|
|
|
Chase Underwriting Solutions Pty Ltd
|
Premier Plus
|
$20,000
|
|
|
|
Zurich Australian Insurance Limited
|
Comprehensive
|
Variable up to Unlimited
|
|
|
|
Pacific International Insurance Pty Ltd
|
Explorer
|
Unlimited
|
|
|
|
Tokio Marine & Nichido Fire Insurance Co. Ltd
|
Top Cover
|
Variable up to Unlimited
|
|
|
|
Allianz Australia Insurance Limited
|
Comprehensive
|
Variable up to $100,000
|
|
1Cover
Fast Cover
InsureandGo
Ski-Insurance
Tick Insurance
Zoom Travel Insurance
AllClear
Amex
Australian Seniors
Boomers
Budget Direct
Cover-More
Easy Travel Insurance
Freely
Go insurance
Insure4Less
Passport Card
SCTI
Travel Insurance Direct
Travel Insurance Saver
Travel Insuranz
Webjet
World Nomads
World2Cover
WorldcareCommon disruptions (and how cancellation cover can help)
1. Unexpected illness or injury
Falling ill before your trip can be frustrating, especially if you’ve already paid for everything. Cruises are a perfect example, where hefty deposits are often paid upfront when booking your trip. Cancellation cover may help you recover some of those costs if you need to cancel due to illness or injury.
Keep in mind that policies often include conditions around pre-existing medical issues, so it’s important to check what’s covered and declare any pre-existing medical conditions to your insurer.
2. Severe weather or natural disasters
Events like bushfires, storms, or cyclones can disrupt travel plans without warning.
Depending on your policy, cancellation cover may assist with:
- Rebooking fees
- Extra accommodation expenses
- Missed connections
Having all your bookings organised and accessible can make it easier to adjust plans quickly if needed.
3. Work or family emergencies
Life can be unpredictable, whether it’s an unexpected job change or a family situation requiring you to stay home.
Cancellation cover may help recover some costs if your plans change due to these circumstances. Since coverage can vary (especially for redundancy or specific emergencies), reviewing your policy details is key.
3 Expert Tips for Getting Your Cover Right
1. Buy cover as soon as you book
Secure your travel insurance immediately after you book your trip and pay any deposits. This helps ensure cancellation cover is in place from the outset. If you wait until after an event occurs that forces you to cancel, you won’t be covered.
2. Match your cover to your trip costs
Take stock of all prepaid expenses such as flights, accommodation, tours, and deposits and choose a policy that adequately covers their total value. Underinsuring can leave you out of pocket if plans change.
3. Think beyond cancellation
Cancellation cover is just one piece of the puzzle. Consider whether you need extras like cruise cover, rental vehicle excess, or protection for higher-risk or extreme activities. Always review the PDS and TMD to confirm your policy fits your trip.
Final thoughts
Cancellation cover might not be the first thing on your travel checklist, but it can make a big difference if plans change unexpectedly. A little preparation upfront can help you focus on enjoying your trip, knowing you have support if needed.
If you’re planning your next getaway, it’s worth thinking about your trip, what activities you’ll be partaking in and how much cover you’ll need prior to exploring your travel insurance options so that you understand what’s included before you go.
trip cancellation faqs
No. Travel insurance doesn’t cover every type of flight cancellation, and exclusions always apply.
In general, policies are designed to cover unexpected events outside your and the airline’s control. For example, severe weather, natural disasters, or certain emergencies. However, cancellations caused by the airline, such as operational issues or mechanical faults, are typically not covered, as these are considered the airline’s responsibility.
If you miss a connecting flight because of a delay or cancellation, cover will depend on the cause and your specific policy. Some scenarios may be covered, while others are not.
For more detail, see our guide on missed flights cover.
In most cases, no. Standard travel insurance policies usually exclude claims linked to war, armed conflict, or related disruptions like airspace closures and fuel shortages.
Ongoing tensions involving Iran, Israel, and military activity linked to the United States have triggered significant travel disruption across parts of the Gulf region. Widespread flight cancellations and restricted airspace have left many travellers stranded or forced to change plans at short notice.
Although some policies may offer limited cover for delays, most exclude claims somehow tied to war or geopolitical conflict. Travellers affected often need to seek refunds or credits directly from airlines or travel providers.
Very few travel insurance policies (if any) offer cover for the financial default of an airline, cruise line or tour operator. Learn more about travel insurance and insolvency and remember to check if this benefit is included in your chosen policy's Product Disclosure Statement (PDS).
Travel insurance can cover travel delays, provided the disruption is outside your control and not caused by the airline itself. A common misconception among travellers is that insurance covers delays or cancellations caused by an airline’s operational, technical or mechanical issues — however, these situations are generally the airline’s responsibility.
With more than 23% of Australian flights delayed in 2025, and 22% delayed globally, disruptions have become an increasingly common part of travel. If your airline causes a significant delay or cancellation, they are typically responsible for rebooking you on the next available flight and, where required, providing meals or accommodation.
Travel insurance is designed to step in when unforeseen events outside the airline’s control disrupt your journey. Depending on your policy, this may include events such as motor vehicle accidents, severe weather or natural disasters, riots, strikes, or other unexpected circumstances that cause you to miss a connection or delay your travel plans.
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