There’s a lot that goes into planning a trip, including accommodations, airfare, transportation, entertainment, food, travel insurance, etc. But even the best planning won’t stop unexpected circumstances from throwing a wrench in your travels and forcing you to stay home.
If you’ve prepaid your non-refundable trip, you could be paying for a vacation that you never actually take.
That’s where a trip cancellation insurance policy comes into play. With this type of plan in place, you can be covered for a portion of the cost of your trip if it is cancelled for a qualifying reason.
What Is Trip Cancellation Insurance?
Trip cancellation insurance provides coverage to you when your trip is cancelled for some reason before you leave. If your airfare or hotel accommodations are non-refundable, for instance, a trip cancellation insurance policy will reimburse you for these costs (keep in mind that these policies have a cap) in case you are unable to leave for a covered reason.
This type of plan starts soon after you buy it and ends when you leave for your trip. After you depart, your coverage ends.
Best Trip Cancellation Insurance Providers
Insurers offer trip cancellation insurance either as standalone products or as additional coverage that you can add to an existing travel medical insurance plan.
| Company | Types of Travel Insurance offered | Availability |
| SoNomad | – Trip cancellation and trip interruption insurance – Travel medical insurance – Snowbird insurance | All Canadian residents |
| Insurance Hotline | – Travel insurance – Snowbird travel insurance – Trip cancellation insurance | All Canadian residents |
| Manulife | – Travel insurance – Trip cancellation insurance – Travel insurance for students studying abroad and visitors travelling in Canada | All Canadian residents |
| TD Travel | – Travel insurance – Snowbird insurance – Trip cancellation and more | All Canadian residents |
| CAA-Quebec Travel | – Travel insurance with or without medical coverage – Emergency medical care insurance – Trip cancellation or interruption insurance | Quebec residents only |
| BCAA | – Emergency medical insurance – Trip protection coverage – Visitors to Canada insurance | BC & Yukon residents only |
SoNomad
SoNomad is a travel insurance firm that provides various levels of travel protection to Canadians. The company’s mission is to make travel insurance more affordable, transparent, and easier to access.
SoNomad offers the following types of travel insurance plans to meet your needs:
- Medical insurance
- Trip cancellation and interruption insurance
- Visitor insurance
- Snowbird insurance
- Super visa insurance
You can buy a standalone insurance product or choose the all-inclusive option to get all products for a bundled price.
Manulife
Manulife has been in the insurance industry and protecting Canadians for more than a century. It is now considered one of the leading global financial services groups that not only offers insurance products but also professional financial advice and wealth and asset management solutions.
Among Manulife’s insurance products offered is travel insurance. You can get up to $10 million in emergency medical coverage, including COVID-19-related expenses. Manulife’s suite of travel insurance products includes the following:
- Emergency medical insurance
- Trip cancellation and interruption insurance
- Non-medical all-inclusive insurance
- Student insurance
- Visitors to Canada insurance
- Senior and snowbird insurance
TD Travel
TD Insurance is part of one of the largest banks in Canada. The company works with individuals and groups and is dedicated to helping Canadians find insurance products that best suit their needs.
TD Travel Insurance is underwritten by TD Life Insurance Company. Under this branch, you can purchase a single trip plan to cover you for each of your travels, or an annual trip plan that is good for unlimited trips taken in one year, which is best if you travel frequently and are looking to keep insurance costs low.
TD Travel offers the following plans:
- Medical insurance
- Seniors and snowbird insurance
- Trip cancellation and interruption insurance
CAA-Quebec Travel
CAA-Quebec Travel Insurance is a branch of the popular CAA. The company offers travel insurance coverage to Quebec residents to ensure comprehensive coverage while abroad.
CAA-Quebec Travel Insurance offerings include the following:
- Emergency medical care
- Trip cancellation and interruption
- Visitors to Canada
Other add-ons are available at an additional price:
- Coverage of damage to rental vehicles
- Coverage for pre-existing conditions
- Air adventure coverage
- Coverage for professional sports and motor speed contests
BCAA
BCAA provides travel insurance plans to residents of BC and the Yukon. Individuals and families can choose from single-trip and annual multi-trip plans according to their travel frequency. Kids are covered for free, and BCAA members can save 10% on a travel insurance plan.
Travel insurance plans from BCAA include the following:
- Emergency medical insurance
- Visitors to Canada coverage
- Trip cancellation and interruption insurance
What’s The Difference Between Trip Cancellation And Trip Interruption Insurance?
It’s not uncommon to confuse “trip cancellation” and “trip interruption” insurance, but they differ slightly.
Unlike trip cancellation insurance, trip interruption insurance covers events that interrupt your trip after you’ve already departed. Coverage starts after you leave for your trip. If your travels are disrupted at any point before you are scheduled to go back home, this policy will reimburse you for any costs (there will be a cap) required to get you home.
Trip interruption is a separate policy and isn’t automatically included if you get a trip cancellation policy.
What Issues Are Covered With Trip Cancellation Insurance?
The specific reasons that are covered under a trip cancellation policy depend on the exact plan that you have taken out. You must be fully aware of what’s covered under your policy before you sign on the dotted line.
That said, certain reasons are commonly included in these types of policies, such as the following:
- You or a travelling partner get sick or injured unexpectedly
- A family member has been hospitalized or has died
- You or your spouse are pregnant and are due to give birth within 9 weeks of your scheduled departure date
- Visa issues that are beyond your control
- The travel supplier suddenly stops operations
- There is a travel advisory in the destination you intend to travel to
- Bad weather has made travel dangerous
- You’ve been ordered to attend jury duty
- You lose your job
- Threats of terrorism
Can You Cancel For Any Reason?
With a general trip cancellation insurance policy, you cannot cancel for any reason. As explained above, there are specific reasons covered. But, you can find more specific policies that will let you cancel for any reason and they will be expensive.
Can You Get Trip Cancellation Insurance Through An Insurance Broker?
Yes, an insurance broker can help you find a trip cancellation insurance plan. In fact, there are many reasons why you may want to use a travel insurance broker to shop around for a trip cancellation insurance policy:
Brokers work for customers, not insurance companies. An insurance broker is not employed by a specific company, so they’re not obligated to push one particular insurer’s products. Instead, brokers work on your behalf and have your best interests in mind when looking for the best deal available for you.
Brokers work with a vast network of insurers. With so many insurance companies within a broker’s network of professionals, you’ll have access to the top insurers in Canada.
Brokers do all the legwork. Instead of calling individual insurance providers to find out what products and prices they offer, you can get a broker to do all the comparison shopping for you. This will save you plenty of time and will ensure you wind up with a great plan at the lowest rate.
Brokers are licensed and thoroughly trained. Insurance brokers are required to be licensed in their province or territory. Further, they typically hold a license for each type of insurance product they work with. As such, brokers must meet specific requirements in terms of competence and ethical conduct. In this way, you can rest assured knowing that you’re working with a trained professional who will treat you fairly and give you the best service.
Brokers can help with claims. It can be a bit daunting and time-consuming to make a claim when required. Insurance brokers are very familiar with the claims process and can help you throughout this journey by communicating with the insurance provider and ensuring that a resolution is reached quickly.
Additional Places To Get Trip Cancellation Insurance
Trip cancellation insurance can be purchased in a handful of ways:
Credit Card Issuers
If you have a credit card, you may have access to insurance products, including trip cancellation insurance. Some policies are included in the cost of your annual fee, while others may be purchased as an add-on product. Get in touch with your credit card provider to find out what’s available to you.
Best Credit Cards With Trip Cancellation Insurance
The following make our top picks for the best credit cards that come with trip cancellation and trip interruption insurance:
| Annual Fee | ||
| TD® Aeroplan® Visa Infinite Privilege* Card | $599 | Learn More |
| Scotiabank Passport® Visa Infinite* Card | $150 | Learn More |
| BMO Ascend World Elite®* Mastercard®* | $150 | Learn More |
| National Bank Platinum Mastercard® | $70 | Learn More |
| RBC Avion Visa Infinite | $120 | Learn More |
Note: Credit card trip cancellation usually requires you to charge a certain percentage of your flight and hotels to your credit card for your policy to be valid.
Banks And Airlines
Like credit card issuers, banks typically offer insurance products, including travel interruption and cancellation policies.
Similarly, most reputable airlines offer the option to add trip cancellation insurance when you purchase an airline ticket.
How Much Does Trip Cancellation Insurance Cost?
This type of insurance will vary in cost depending on where you buy it from and the extent of the coverage you require. You can expect to pay a couple of hundred dollars for a single trip. A multi-trip policy is a good option if you plan to travel twice in a shorter time. This will usually cost less than two individual plans.
However, trip cancellation insurance on its own will cost less, as it won’t include all the other types of coverage found under the umbrella of a comprehensive travel insurance policy, such as medical insurance. In this case, you can expect to pay less than what you would pay for a full travel insurance plan.
Final Thoughts On Getting Trip Cancellation Insurance
No matter how carefully you plan your trip, there’s always the possibility that something may happen that could force you to cancel. But with a trip cancellation policy in place, you can have any non-refundable portion of your travels reimbursed so you won’t be stuck with a big bill for a trip you never take.
