There’s a lot that goes into planning a trip, including accommodations, airfare, transportation, entertainment, food, and so forth. 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 the cost of your trip in the event that it is cancelled for whatever reason.
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.
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 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 actually leave for your trip. After you depart, your coverage ends.
On the other hand, 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 were scheduled to go back home, this policy will reimburse you for any costs required to get you home.
Are you a frequent traveller? Consider multi-trip insurance.
What Reasons Are Covered With Trip Cancellation?
The specific reasons that are covered under a trip cancellation policy depend on the exact plan that you have taken out. It’s important that you are 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 a 9-week span 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 lost your job
- Threats of terrorism
Additional Reading
Where Can I Get Trip Cancellation Insurance?
Trip cancellation insurance can be purchased 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.
Check out our list of credit cards with trip cancellation insurance.
Banks
Like credit card issuers, banks typically offer insurance products, including travel interruption and cancellation policies.
Travel Insurance Companies
Insurers offer trip cancellation insurance either as standalone products or as additional coverage that you can add to an existing travel medical insurance plan.
Airlines
Most reputable airlines offer the option to add trip cancellation insurance when you purchase an airline ticket.
Best Trip Cancellation Insurance Providers
| Company | Types of Insurance offered | Geographical Availability |
| Rates.ca | – Travel Insurance | All of Canada |
| Insurance Hotline | – Travel Insurance – Snowbird travel insurance – Trip cancellation insurance | All of Canada |
| Manulife | – Travel Insurance – Trip cancellation insurance – Travel insurance for students studying abroad and visitors travelling in Canada | All of Canada |
| TD Travel | – Travel insurance – Snowbird insurance – Trip cancellation and more | All of Canada |
| CAA-Quebec Travel | – Travel insurance with or without medical coverage – Emergency medical care insurance – Trip cancellation or interruption insurance | Quebec Only |
| BCAA | – Emergency medical insurance – Trip protection coverage – Visitors to Canada insurance | BC & Yukon |
Cost Of Buying Trip Cancellation Insurance
While 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 anywhere from 4% to 10% of the total price of your trip for travel insurance.
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. It’s estimated that the average price for trip cancellation insurance is approximately $170.
Trip Cancellation Insurance FAQs
Is trip cancellation insurance worth it?
Can you buy trip cancellation insurance after you’ve booked your flight/vacation?
What information do you need to compare trip cancellation/travel insurance quotes?
- Your location
- Your trip destination
- Your departure and return dates
- Cost of your trip per traveller
- Number of travellers
- Your age
Final Thoughts
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.
