I misunderstood Marc's question. I meant if any payment was prorated with full coverage it would be prorated the same with half coverage. THat said not much if anything is prorated on insurance coverage. Just reading and working too fast "as usual"

Eugene is 100% correct on a cancellation they will pay you UP TO THE AMOUNT insured. You have a trip costing $10,000 and insure for $5000

To be really clear.

Have a loss of $4000 you get $4000
Have a loss of $5000 you get $5000
Have a loss of $10000 you get $5000

It is a personal decision but if you buy insurance you are trying to cover yourself for the amount you paid. That is still a lot to lose if you underinsure and have to be out $5000.

For me I would insure it all OR I would do the zero insurance with the benefits without cancellation coverage.

Of course you pay half the premium this way and the big reason would be if you felt that you would cancel for sure at the 50% penalty stage but THINGS happen unexpectly at the end and you are stuck with a 50% loss. When that happens that premium looks small in comparision to the loss.

Again - everyone's decison.