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.
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:
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.
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.
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:
For more coverage options, check out our post on how to buy travel insurance.
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:
The following make our top picks for the best credit cards that come with trip interruption and trip cancellation coverage:
| Annual Fee | Welcome Bonus | Travel Insurance | |
| Scotiabank Gold American Express | $120 | Earn up to 40,000 points in the first year | Travel 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 | $150 | Receive up to 30,000 points | Trip cancellation/interruption Flight delay Baggage and personal effects loss or damage 24/7 trip assistance |
| TD Aeroplan Visa Infinite* Card | $139 | Earn up to 30,000 Aeroplan points | Trip cancellation/interruption Flight delay Travel accident Delayed and lost baggage Rental car collision/damage Hotel burglary |
| Scotiabank Passport Visa Infinite* Card | $139 | Earn up to 40,000 bonus points | Trip cancellation/interruption Flight delay Travel accident Delayed and lost baggage Rental car collision/damage Hotel burglary |
| National Bank Platinum Mastercard | $89 | N/A | Trip cancellation/interruption Baggage loss Car rental |
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.
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.
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Priyanka Correia is a Marketing Coordinator and personal finance expert at Loans Canada. Priyanka completed her Bachelor's degree in Marketing at Concordia University and has published work that has been mentioned in various news media. She is passionate about money management and educating Canadian consumers about how to take control of their financial lives.
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