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Trip Cancellation & Interruption Insurance

Last updated: 26th June 2023

What is Trip Cancellation and Trip Interruption Coverage?

Imagine that you have already pre-paid for your dream holiday, including flights and hotel, and you are looking forward to a well-deserved break. However, life is unpredictable and you are suddenly faced with an unfortunate circumstance that requires you to cancel your vacation. If the arrangements that you've made for your travel and accommodation are non-refundable, then you've certainly lost a significant investment. It's a nightmare scenario that nobody wants to experience.

But how can you protect the investment that you've made in your travel plans? The answer is Trip Cancellation and Trip Interruption coverage for Canadians. This type of insurance can provide peace of mind by covering the costs of your non-refundable expenses in case of unexpected events such as illness, injury, or other unforeseen circumstances that may prevent you from taking your trip. With this coverage, you can enjoy your holiday knowing that you are protected against financial loss.

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How does trip cancellation work?

In Canada, when you purchase a Trip Cancellation policy, you'll get the following benefits.

Trip cancellation coverage provides benefits if you have to cancel your travel and holiday plans before departure for medical or non-medical reasons. Medical reasons could relate to you or your traveling companions falling ill preventing you from traveling, or possibly the family member that you'd be staying with at the destination being unable to host you due to an illness on their end. Non-medical reasons could be a weather-related event at the destination, an emergency at home, or an issue with the travel supplier such as them canceling the flight.

Trip interruption coverage can provide reimbursement for costs associated with having to change your travel plans to return home AFTER you have departed. Such situations could be the need to return due to an emergency at home, whether it be medically related to a family member or an accident with your home. Several unforeseen scenarios could curtail one's trip.

You may find other benefits as well with Trip Cancellation and Trip Interruption coverage, such as reimbursement for expenses due to a missed connection.

These types of coverage can be purchased as a standalone policy or as part of an All-Inclusive Travel Insurance policy.

Aerial view of a small village on the water in the Norwegian Fjords

Should I consider buying Trip Cancellation and Trip Interruption coverage?

This coverage is especially important if you have pre-paid expenses that are non-refundable, such as flights, hotels, tickets, activities, or car rentals. By purchasing Trip Cancellation Insurance, you can protect yourself from unexpected events that could prevent you from taking your trip.

Even if your travel plans are not pre-paid, you may still want to consider travel insurance if your trip is a significant investment that cannot be transferred to another date or substituted for another location. By purchasing insurance, you can ensure that you won't lose out on your investment if something unexpected happens.

If you're travelling on a budget, you may feel that the coverage is worth the price to protect your trip - the cost of a policy may well be cheaper than the total cost of your trip!

Finally, you may want to purchase coverage simply for the peace of mind it brings. By knowing that you're covered in case something happens, you can relax and enjoy your trip without worrying about what might go wrong.

Do you already have a separate travel medical insurance policy or coverage with a credit card?

If you already have travel insurance coverage, check if there are benefits for Trip cancellation and Trip Interruption. If there are benefits, check if there is sufficient coverage to cover the costs associated with the non-refundable portion of your trip.

If you have coverage on a credit card, again, what are the benefit limits and what are the requirements to ensure coverage is active with the card? For example, do you have to book the entire trip with that card? Is your card in good standing? These are all questions to confirm and another reason to review the policy details associated with your coverage.

You may consider:

  • How much would it cost to replace my trip?
  • What is the refund policy of my travel supplier if I need to cancel or interrupt my trip?
  • Does my existing coverage cover these costs?

If there isn't any coverage or what you have is insufficient, you have the opportunity to purchase a stand-alone Trip Cancellation and Trip Interruption plan to ensure effective protection.

What Insurance Coverage do Credit Cards Offer?

Learn more about the travel insurance offered by credit card providers and how it compares to standalone coverage. Read our guide to find out more about why investing in standalone cover could be beneficial.

Find out more

When should you take out Trip Cancellation coverage?

As soon as you make any payment towards your travel, such as booking the flights, reserving the cruise and/or making the hotel arrangements, you should consider Trip Cancellation Insurance. It's important to note that obtaining coverage for your trip as soon as possible is a wise decision, even if you're making payments in installments.

How can I compare Trip Cancellation quotes?

At this point, you may be wondering how to go about securing the right coverage for you. This is where our team comes in! We are more than happy to help you find the right protection for your travels.

With our state-of-the-art travel insurance comparison website, you can obtain customised quotes based on your trip value from a range of different insurers. This allows you to compare Trip Cancellation and Trip Interruption coverage, so you can make an informed decision and find the best protection for your trip.

So why wait? Click the button below to get started and secure your trip with confidence!

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There are numerous factors beyond your control that can disrupt your travel plans. If the non-refundable portion of your trip is costly, are a snowbird or your departure date is some time away, it may be wise to consider purchasing Trip Cancellation insurance.

Although it may come at a cost, this form of Trip Cancellation insurance (often abbreviated as TCAR) offers the most comprehensive coverage. With this type of insurance, you can cancel your trip for any reason - without the need for a specific qualifying event - prior to departure and receive full compensation. It's like no questions asked insurance, providing peace of mind for any unexpected changes in your travel plans.

An all-inclusive coverage bundle provides additional coverage on top of emergency medical expenses with benefits such as baggage loss/delay and trip cancellation/interruption.

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Warren Brown
Author: Warren Brown, Relationship Manager

Warren holds over 19 years of experience in the travel insurance industry. He enjoys telling the stories of people and places which is fed by his love of travel. Warren is an active member of the Travel Health Insurance Association of Canada (THIA) to better educate the Canadian traveller on the benefits of travelling protected.


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