How does trip cancellation insurance work in Canada in 2024?
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Discover the methodologyTravel cancellation insurance can be a very beneficial option, especially for costly trips and non-refundable bookings. It provides you with the peace of mind of knowing that if unforeseen circumstances arise, you won't lose all the money you've invested in your travel plans.
You need to be aware that insurance policies and coverage details can vary, so it's essential to compare policies and choose one that best suits your needs and travel plans.
But how does travel cancellation insurance work? How much is it? What are the pros and cons? Know all this and more in this complete guide.
5 key takeaways on trip cancellation insurance
- Travel insurance can provide financial protection and peace of mind for costly trips.
- Travel cancellation insurance covers you for unforeseen events.
- But it also comes with costs, limitations and exclusions that need to be considered.
- It covers various reasons for cancelling a trip, including medical emergencies and more.
- Credit cards offer protections against trip interruptions.
What is travel cancellation insurance in Canada?
Travel cancellation insurance, also known as trip cancellation insurance, is a type of coverage that provides financial protection in case you have to cancel or interrupt your trip plans due to unforeseen circumstances. It is designed to reimburse you for non-refundable expenses you've incurred for a trip that you cannot take as scheduled.
Travel cancellation insurance comes with its own set of pros and cons:
Pros of travel cancellation insurance
- Financial protection
- Peace of mind
- Covering unforeseen events
- Covers travel supplier issues
- Trip interruption coverage
- Additional benefits such as baggage loss/delay coverage
Cons of travel cancellation insurance
- Adds to the overall cost of your trip
- Insurance policies come with specific limitations and exclusions
- Pre-existing conditions exclusion
- Claim process can be complex and tedious
- Limited coverage for events like political unrest in certain countries
Looking to buy travel insurance with trip cancellation? Compare such offers using our free comparison tool below:
Compare the best travel insurance plans on the market!
What does travel cancellation insurance cover?
Typically, travel cancellation insurance covers various reasons for cancelling or interrupting your trip, such as:
- Medical emergencies: If you or a family member fall seriously ill or get injured before or during the trip and you have to cancel or cut short your journey.
- Unexpected personal events: Coverage may include events like the death or serious illness of a family member or a major life event like a wedding or legal obligation that prevents you from travelling.
- Natural disasters: In case a natural disaster, such as a hurricane, earthquake or flood, disrupts your travel plans.
- Travel supplier issues: If your airline, cruise line or accommodation provider goes out of business, cancels your reservation or significantly changes your itinerary.
- Government advisories: If government travel advisories advise against travel to your destination.
- Jury duty or legal obligations: If you are summoned for jury duty or need to appear in court during your planned travel dates.
- Job-related reasons: Some policies may cover cancellations due to job loss or unexpected work-related obligations.
It's essential to carefully review the terms and conditions of the policy to understand what is covered and what is not. Different policies may have varying coverage limits, exclusions and conditions. Additionally, most policies require you to purchase insurance shortly after booking your trip to be eligible for certain benefits.
Does travel cancellation insurance cover flight cancellation?
Yes, travel insurance for flight cancellation is an available option. If you have purchased trip cancellation or trip interruption coverage as part of your policy, it may provide reimbursement for non-refundable flight tickets if you need to cancel your trip before departure or if your trip gets interrupted and you are unable to complete it as planned.
What are common reasons for travel cancellation?
Travel cancellation can occur for various reasons, depending on the circumstances. Here are some common reasons for cancelling plans that might be covered by travel cancellation insurance Canada plans:
- Medical emergencies and unforeseen Illness
- Accidents or family emergencies
- Natural disasters
- Travel supplier issues
- Government advisory recommending against travelling to your destination
- Visa denial or job-related obligations
- Legal obligations
- Terrorism or civil unrest
- Severe weather conditions
Good to know
I you are a member of the military and your deployment is altered, it can lead to the need to cancel or change your travel arrangements, which could be eventually covered by travel insurance.
Which is the best travel cancellation insurance?
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Here are some of the best trip cancellation insurance options in Canada:
- Heymondo Travel Insurance offers several travel cancellation coverages with compensation of up to $9,450.
- Manulife Travel Insurance cancellation plan is a popular choice for Canadians and offers a wide range of coverage options.
- Allianz Global Assistance is another well-known provider of travel insurance and offers competitive rates.
- Travel Guard Canada is a subsidiary of Allianz Global Assistance and offers similar coverage to its parent company.
- TuGo is a Canadian company that specializes in travel insurance and offers a variety of features and benefits.
- RSA is a large insurance company that offers travel insurance and is known for its customer service.
- Blue cross offers Blue cross travel cancellation insurance or trip cancellation coverage.
- BCAA trip cancellation insurance also covers interruptions, travel delays and baggage loss or damage.
How to buy the best trip cancellation insurance
Travel cancellation insurance can be obtained in different ways, either as a standalone policy or as part of a broader travel insurance package as an add-on:
- Standalone travel cancellation insurance: You can such travel cancellation insurance from various providers. It's especially useful if you're primarily concerned about trip cancellations and want to focus your coverage in that area. This type of insurance is designed to reimburse you for non-refundable expenses if you need to cancel your trip or cut it short for covered reasons, such as illness, injury, family emergencies, or other qualifying events.
- Travel insurance packages with cancellation coverage: Many comprehensive travel insurance packages include trip cancellation coverage as part of their offerings. These packages typically provide a range of benefits beyond just trip cancellation, such as trip interruption coverage, emergency medical coverage, baggage loss coverage, and more.
The trip cancellation coverage within these packages is often bundled with other benefits to provide a more well-rounded insurance solution. If you're looking for a broader coverage that includes various travel-related risks, a travel insurance package might be a suitable choice.
The coverage of travel insurance for any reason cancellation varies across policies and coverages, so it's best to check and get an individual quote. Get a free personalized quote using our online comparison tool:
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What to keep in mind when choosing travel insurance
When choosing travel insurance, make sure that the insurer covers cancellations. Also, it is important to compare policies and features to find the best fit for your needs. Here are some factors that you should consider:
- Coverage: Make sure the policy covers the events that you are most concerned about, such as trip cancellation, trip interruption, medical expenses and lost luggage.
- Cost: Plans can be expensive, so compare rates from different providers to find the best deal.
- Deductible: The deductible is the amount of money you will have to pay out of pocket before the insurance company will start paying claims.
- Exclusions: Make sure you understand the exclusions in the policy, so you know what is not covered.
Expert advice
Purchase travel cancellation insurance as soon as you book your trip to get the most protection.
How much is travel cancellation insurance?
The cost can vary widely based on factors such as the provider, the specific policy, the age of travelers, the trip's destination and duration, and the total trip cost. However, here are a few examples on how much travel cancellation insurance could typically cost you:
| Trip information | Type of insurance | Estimated Insurance monthly cost |
|---|---|---|
| Trip cancellation only | $40 to $70 |
| Comprehensive with cancellation | $90 to $150 |
| Comprehensive with higher coverage | $150 to $300 |
Keep in mind
It's recommended to obtain quotes directly from insurance providers for accurate pricing tailored to your travel plans. You could use our comparator at the end of this page to get free quotes directly from Canada's best travel insurance providers.
Which credit cards have travel insurance cancellation?
In Canada, several credit cards offer travel insurance benefits, including trip cancellation and trip interruption coverage. Here are some credit cards with travel cancellation insurance options:
| Credit Card | Travel insurance coverage |
|---|---|
| BMO world elite mastercard travel cancellation insurance | The BMO World Elite Mastercard is known to offer travel insurance benefits, including trip cancellation and trip interruption coverage. |
| RBC Westjet mastercard travel cancellation insurance | The RBC WestJet World Elite Mastercard may offer travel insurance benefits, including trip cancellation and interruption coverage. |
| CAA travel cancellation insurance | CAA is known for providing travel insurance options, including coverage for trip cancellation and trip interruption. |
| PC financial mastercard travel cancellation insurance | The PC Financial Mastercard may offer certain travel insurance benefits, depending on the specific card variant. |
Here are some other credit cards with trip cancellation benefits:
- Scotiabank: Several Scotiabank credit cards, such as Scotiabank Gold American Express, Scotiabank Passport Visa Infinite and Scotiabank Platinum American Express, offer benefits, including trip cancellation and interruption coverage.
- TD Bank: Some TD credit cards, like TD First Class Travel Visa Infinite and TD Aeroplan Visa Infinite, may provide trip cancellation and interruption insurance through TD travel visa cancellation insurance.
- CIBC: Certain CIBC credit cards, such as CIBC Aventura Visa Infinite and CIBC Aventura Gold Visa, may include travel insurance benefits.
- BMO: Some BMO credit cards, like BMO World Elite Mastercard and BMO Air Miles World Elite Mastercard, may offer travel insurance coverage, including trip cancellation.
- American Express: Some American Express cards in Canada, such as American Express Gold Rewards Card and American Express Platinum Card, may offer travel insurance coverage.
