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Does Travel Insurance Help Me If My Fare Drops?

I’ve been a way for a few weeks. I went with my extended family (14 of us in total) to London and we got to stay in Hampton Court Palace. It was great!

Hi Steve, Thanks for your help (and helpful insurance) in the past. This is a question I can’t seem to find the easy answer to on any website. I am planning to fly with my 5 year old NYC to SEA in March for 1 week. I hate to book now, see a drop in fares, and eat crow. Likewise, I’d much prefer to be able to afford to pay for an empty seat so big old me and squirmy him don’t have to squish in next to a total stranger for 6 hours. If the fare is 30% lower I can justify buying that seat! Is there any kind of insurance that will allow me to pay for my tickets now, while seats are available, and cancel them for a full refund, then buy them at a lower fare should the price drop significantly? I know there is CFAR (Cancel For Any Reason), but I wonder how I could apply it if I then take the trip anyway. Thanks, Stacy

Hi Stacy,

Thanks for coming back to TripInsuranceStore.com and writing.

Other than having a Cancel For Any Reason policy, travel insurance will not cover you if your fare drops. Plus, a Cancel For Any Reason policy is too expensive relative to the risk you would be insuring. The reason it’s too expensive is that adding the Cancel For Any Reason upgrade increases the price by about 50% while the most you will get back is 75% of your financial loss.

And, on top of that, filing a Cancel For Any Reason claim will be a huge hassle in this situation. You can see what I mean by reading what I wrote here:
https://tripinsurancestore.com/blog/should-you-buy-trip-cancellation-insurance-for-just-airfare/.

By the way, the article I wrote called “Should You Buy Trip Cancellation Insurance For Just Airfare?” sure gets a lot of people mad at me (especially my competitors). I have no regrets for writing it and I hope it continues to bother my competitors. In my opinion, if they can’t understand this simple logic they shouldn’t be selling travel insurance (my mind’s made up, don’t confuse me with the facts).

It’s a good idea to buy Trip Cancellation Insurance when you are covering a cruise, tour, resort or a vacation rental property whether your trip includes airline tickets or not. Or you want medical coverage while on your trip. But I think most people would be better off if they skipped buying just for their domestic airfare when they have no other prepaid trip costs.

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