Trip interruption insurance provides a financial safety net if you’re forced to interrupt your trip due to covered reasons. However, navigating the world of travel insurance can be confusing. It’s important to understand what exactly defines trip interruption insurance. Read our blog on Trip Interruption Insurance to get a deep understanding.
Trip interruption insurance can be a good idea for a trip to Thailand, especially if you have non-refundable travel costs and you are traveling from the other side of the world.
Having Trip Interruption while in Thailand gives you:
- Flexibility: If anything comes up while your enjoying your Krabi Island getaway then you will have options to return home without worrying about any more costs.
- Peace of mind: It provides a safety net in case unexpected events force you to cut your trip short. This could be due to illness (yours or a close relative’s), a death in the family, or even severe weather disrupting travel.
- Financial protection: Trip interruption insurance can reimburse you for non-refundable flights, hotels, and activities if you need to return home early. It can also help cover additional expenses incurred due to the interruption, like last-minute flights or new accommodations.
Here’s how to decide:
- Consider your risk tolerance: Are you comfortable potentially losing prepaid expenses if an unexpected event occurs?
- Evaluate your trip cost to Thailand: The more non-refundable bookings you have, the more valuable trip interruption insurance becomes.
💡Tip: Always be sure to read the policy wording to make sure that you understand the covered situations as some insurance policies may offer you high coverage but might cover only for a very specific case.
How much Trip Interruption coverage do you need for Thailand?
There’s no one number that can answer this question. It was much depends on the same three factors:
- Non-refundable trip costs: This is the primary factor. Add up the cost of your flight to Thailand, pre-paid accommodation (hotels, tours, activities) that would be non-refundable if you had to cut your trip short.
- Trip duration: Longer trips generally warrant higher coverage amounts as there’s a greater chance of something unexpected happening in Thailand.
- Your risk tolerance: How comfortable are you potentially losing these costs if needed?
Here are some general recommendation to give you an idea:
- Get Minimum coverage: Aim for coverage at least equal to your non-refundable trip costs. This ensures you’ll be reimbursed for everything you lose if you have to return early.
Let’s say you are selecting your trip interruption insurance from LUMA’s Asia Pass.
You have three choices to pick from:
| Explorer | Adventurer | Pioneer | |
|---|---|---|---|
| Coverage | 1,000 USD | 3,000 USD | 5,000 USD |
Case 1: Non-refundable trip costs are around 2,600 USD, Trip Duration is 3 days and your risk tolerance is low. Then Adventurer would be a good choice for you.
Case 2: Non-refundable trip costs are around 500 USD, Trip Duration is 4 days and your risk tolerance is high. Then Explorer would be a good choice for you.
Case 3: Non-refundable trip costs are around 3,000 USD, Trip Duration is 17 days and your risk tolerance is low. Then Pioneer would be a good choice for you.
Trip Interruption for Thailand Real Examples:
Question: While traveling in Thailand, I’ve lost interest in continuing my journey and I want to change my plans. I wish to shorten my trip and fly back to my country of origin. Can I receive reimbursement for the ‘Curtailment of Trip’ benefit?
Answer: This will not be covered, as it is just a change of mind. In order to claim for the benefit it must be for covered reason. Usually these reasons are urgent and serious, or unforeseen.
Question: I was enjoying my holiday in Chiang Mai, but right now I need to fly back to the States because my Mother is in the ICU and the hospital has requested me to be home. Can I be reimbursed for any extra costs the airline charges me for changing my flight?
Answer: This will most likely be covered by most insurance companies, as it is an urgents matter and the immediate family is in a serious medical condition. However, be sure to read the policy wording first.
