Credit Cards With Trip Cancellation Insurance

Credit Cards With Trip Cancellation Insurance

Written by Priyanka Correia
Fact-checked by Caitlin Wood
Last Updated June 23, 2021

If you’re planning to take a trip abroad, there’s a lot more than just your plane ticket and hotel room to plan for. 

It’s always good to be prepared when travelling. That includes taking measures to ensure you’re adequately covered in the event that you are no longer able to travel after you’ve already booked your trip or must cut your trip short due to some unexpected circumstances.

While you can obtain a policy through your employer or with an insurance company, you may be covered through your credit card without the need to spend any extra money buying a travel cancellation or interruption insurance policy.

Luckily, there are plenty of credit cards out there that come with this type of insurance built into the annual fee

What Is Trip Cancellation Insurance And Trip Interruption Insurance?

Trip cancellation and interruption insurance provide protection in the event that your trip is cancelled or impacted to some degree. These are two different policies that provide different types of protection:

Trip Cancellation Insurance 

Covers you when your trip must be cancelled before the departure date arrives. The policy takes effect the moment your trip is booked and remains in effect until the scheduled departure date. The policy will no longer be available after this date.

Trip Interruption Insurance

Covers you when your trip must be changed or cut short after your scheduled departure date. The policy takes effect after the scheduled departure date and remains in effect until the trip ends.

Are you a frequent traveller? Find out if you need multi-trip travel insurance.

Trip Cancellation And Trip Interruption Coverage

Both types of insurance offer coverage under specific situations that are outlined in the policy. Certain situations qualify for coverage under these policies, while some aren’t. Trip cancellation and trip interruption insurance policies typically cover the following:

Trip Cancellation Insurance Coverage

  • Illness or injury of an insured person 
  • Death of an insured person
  • Illness or death of an immediate family member of an insured person
  • Traffic accident or road closure that caused a missed flight
  • Travel advisory recommending Canadians not to travel to a destination that an insured person is travelling to
  • Request for active duty of an insured person 

Trip Interruption Insurance Coverage

  • Illness or injury of an insured person that forces a trip to be cut short or causes a delay in reaching a specific destination
  • Death of an insured person during the trip
  • Illness or death of an immediate family member of an insured person that requires an early trip home 
  • Traffic accident or road closure that caused a missed connecting flight
  • Travel advisory recommending Canadians not to travel to a destination that an insured person is travelling to as part of their itinerary

For more coverage options, check out our post on how to buy travel insurance

When Trip Cancellation And Trip Interruption Insurance May Be Void

While trip cancellation or trip interruption insurance covers many things, there are certain situations in which these policies would likely not provide coverage, including the following:

Trip Cancellation Insurance

  • Pre-existing medical conditions
  • Injuries that are self-inflicted 
  • Reimbursement of travel points that would be lost if a trip was not booked within a certain period of time

Trip Interruption Insurance

  • Criminal activity by an insured person while on the trip
  • Alcohol or drug abuse by an insured person
  • Intentionally inflicted injuries by an insured person
  • Psychological issues of an insured person
  • Injuries as a result of participating in a dangerous activity 
  • Pregnancy-related reasons if they take place within 9 weeks of the due date
  • Terrorist acts

Best Credit Cards With Trip Cancellation And Interruption Insurance In Canada

The following make our top picks for the best credit cards that come with trip interruption and trip cancellation coverage:

Annual FeeWelcome BonusTravel Insurance
Scotiabank Gold American Express$120Earn up to 40,000 points in the first yearTravel emergency medical
Trip cancellation/trip interruption
Flight delay
Travel accident
Delayed and lost baggage
Rental car collision loss/damage
Hotel/motel burglary
BMO World Elite Mastercard$150Receive up to 30,000 pointsTrip cancellation/interruption
Flight delay
Baggage and personal effects loss or damage
24/7 trip assistance
TD Aeroplan Visa Infinite* Card$139Earn up to 30,000 Aeroplan pointsTrip cancellation/interruption
Flight delay
Travel accident
Delayed and lost baggage
Rental car collision/damage
Hotel burglary 
Scotiabank Passport Visa Infinite* Card$139Earn up to 40,000 bonus pointsTrip cancellation/interruption 
Flight delay 
Travel accident 
Delayed and lost baggage 
Rental car collision/damage 
Hotel burglary
National Bank Platinum Mastercard$89N/ATrip cancellation/interruption
Baggage loss 
Car rental 

How Do You Make A Trip Cancellation/Trip Interruption Claim?

If something happens while you are abroad, you should get in touch with your insurance provider immediately to file a claim. If your claim is accepted, you should receive reimbursement shortly after your approved claim. 

You should retain all invoices and receipts to show as proof to your insurance provider. You may also need to show some sort of proof of the circumstances, such as a screenshot of your delayed or cancelled flight.

When travelling, be sure to have the contact information of your insurance provider handy so you don’t have to scramble looking for it in the event that your trip is interrupted or cancelled.  

Have you had your insurance claim denied? Learn more about why this happens.

Final Thoughts

Anything can happen that may derail your travel plans. To protect yourself against the unexpected, it’s always best to have a travel insurance policy in place to avoid any unnecessary costs to you that are no fault of your own. With any one of these credit cards in your wallet, you can be protected without having to take out a separate policy.

Priyanka is a personal finance expert at Loans Canada. She is passionate about money management and educating Canadian consumers about how to take control of their financial lives. She has taken financial control of her life by using Mint to budget and track her expenses while growing her wealth by investing through Wealthsimple. She also believes in having an emergency fund, so she keeps a good sum of money in an easily accessible high-interest savings account. She also uses the American Express Cobalt Card to earn points on all her purchases, further fueling her savings goal. She also uses Loans Canada’s lender directory whenever she wants to compare rates from different lenders.

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