Trip Cancellation

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When it comes to travel, we know to expect the unexpected. No matter how well you have planned out your trip, life is full of surprises. If your trip has been cancelled or your plans have changed, trip cancellation insurance can help to protect what you have paid towards your trip.

What is travel cancellation insurance?

Trip cancellation insurance can protect the investment you’ve made in your travel plans in the event that you need to change or cancel your trip. These expenses may include deposits, flight, hotel, car rental, event tickets, excursion and cruise bookings.

Often a trip cancellation protection policy will also include additional benefits to cover trip interruption, travel delay, or supplier default (i.e. bankruptcy). These coverages may vary by policy and provider.

Medical plans do not include trip cancellation. For plans with both trip cancellation and medical coverage, consider an all-inclusive plan.

Does travel insurance cover cancellation of a trip?

Only travel insurance plans which include Trip Cancellation / Interruption coverage can protect your travel bookings in the event of modifying or cancelling your trip.

What does trip cancellation cover?

Trip cancellation covers your prepaid, non-refundable, non-transferable expenses.

Acceptable reasons for cancellation vary by policy, however the most commonly accepted reasons for trip cancellation or interruption may include:

  • A medical emergency for you or your travel companion
  • A medical emergency, hospitalization or death of an immediate or extended family member
  • Unforeseen legal obligations
  • Job loss due to layoff
  • Relocation due to job transfer

Will travel insurance cover cancellation due to weather?

Weather is a common cause of trip cancellations, especially during hurricane season or the winter. For example, if a severe storm wreaks havoc on your travel plans, you may be relieved that you purchased an insurance plan that includes trip cancellation coverage. Remember that coverage and plans vary. We strongly recommend that you read your policy carefully and to reach out to our Customer Care Team for help and questions with the fine print of your policy.

Does travel insurance cover accommodation cancellation?

Travel insurance plans that include trip cancellation coverage would cover all pre-paid, nonrefundable expenses, including your accommodations. This means your hotel, vacation rental, resort or any other type of nonrefundable accommodation would also be covered under your trip cancellation coverage if you need to cancel your trip.

Does my credit card cover trip cancellation?

Some premium credit cards may offer trip cancellation benefits. However, benefits vary significantly, and card users may have difficulty evaluating the scope of coverage.

How to find out: check your credit card policy for details on trip cancellation coverage. If you can’t find it, your card likely doesn’t offer it. You can also contact your card company and ask these types of questions to get clarification on limitations and other requirements:

  • What is the reimbursement limit per trip, per occurrence, and maximum benefit per year?
  • What are the covered reasons, restrictions, limitations, and exclusions?
  • Does the credit card travel insurance coverage extend to my family?
  • Do you cover longer trips?

Cardholders usually must use the card to book or buy their entire travel purchase in order to be eligible for coverage.

How much is trip cancellation insurance?

Travel insurance is not one-size-fits-all and is as unique as the traveller themselves.

It is important to ensure your insurance policy offers the right coverage for your individual needs and circumstances. Vacation cancellation insurance can offer the most value if you need to cancel your travel plans. The cost of the policy will vary based on the age of the travellers, cost of the trip, and trip length.

Is trip cancellation insurance worth it?

Life happens, and events are often beyond our control. Any number of events can derail your trip, no matter how well you have planned it.

Trip cancellation insurance offers the ideal protection for any traveller who cannot accept the financial loss of their pre-paid, non-refundable, or non-transferable expenses. This is a popular choice of coverage for travellers who plan for a trip well in advance (10 – 18 months prior to departure). The sooner you purchase a plan, the sooner your investment will be protected from unforeseen circumstances.


DISCLAIMER: This guidance in this article is provided for informational and educational purposes only. It is intended to offer guidance regarding travel insurance and the benefits which may be available. It does not guarantee coverage for any traveller. The information in this article reflects the most up-to-date information available at the time of publication. If you have questions regarding specific coverage details or available travel insurance plans, please contact our licensed customer care team.