Cancellations or delays can seriously affect your holiday and travel plans. Trip cancellation coverage can help protect you financially – request a free quote.
find out more
What is trip cancellation insurance?
Matt Hands, VP, Insurance and MoneySense
Despite months of expert planning, a vacation can be over in moments, when sudden and unforeseen events require you to cancel travel plans. Even the best-laid plans can be derailed by a medical emergency, death in the family, natural disasters, or visa issues. The same goes for emergencies that happen while on a holiday.
With trip cancellation insurance in Canada, you’ll be reimbursed for prepaid, non-refundable, non-transferable travel expenses if your trip is cancelled before departure or interrupted due to a covered event as defined by your insurance policy.
Trip cancellation insurance must be in place before you travel. Ideally, it should be purchased as soon as your trip is booked - especially if your departure date is months away - to ensure you're covered before something happens that would force you to abruptly cancel.
advertisem*nt
A few things we're proud of
1,200,000
monthly users
11 years
young
Over 1M
better choices made
Trusted partner
See AlsoBest travel insurance in Canada for 2024CAA Travel Insurance Review for 2024: Rates, Plans, and MoreThe Canadian Guide To Annual Multi-Trip Travel InsuranceTravel Insurance for Canada - 5 Best Sites to Search (2024)to Canada’s top financial institutions
How does trip cancellation insurance work in Canada
One of the most important parts of a travel insurance policy is understanding exactly what’s covered and excluded in a policy, especially when it comes to pre-existing medical conditions for yourself, your spouse, travel companion, or immediate family members. Not every situation or loss is covered, and coverage is restricted to the terms outlined in your policy.
In addition to pre-departure cancellation coverage, a few things that are also covered under a standard trip cancellation policy include:
- Baggage loss insurance: Reimbursem*nt for certain costs related to the loss, damage or theft of luggage or travel documents such as visas or passports during your trip.
- Baggage delay: Reimbursem*nt for the cost of purchasing essential clothing and toiletries if your luggage is delayed for a certain number of hours.
- Trip delay and interruption: Reimbursem*nt if your trip is delayed or interrupted due to a covered cause. Covered causes may include emergency illness, injury, hospitalization or quarantine of you, your spouse, travel companion, immediate family member, caregiver, key employee or business partner or destination host.
- Flight and travel accident: Benefits for serious injury or death because of an accidental injury that occurs on a commercial aircraft during your trip.
If the non-refundable portion of your trip is expensive, you should consider factoring the cost of travel insurance into the cost of a trip - a $500 premium beats paying the full cost of a non-refundable $5,000 trip.
Get the best trip cancellation insurance for Canadians.
Travel insurance is inexpensive, quick to arrange, and it protects you against the pain of trip cancellations or flight delays. Make sure your planned vacation is fully protected.
request a quote
Frequently asked trip cancellation insurance questions
Should I get trip cancellation insurance?
Depending on how you booked your plane tickets, hotel reservations, all-inclusive vacation or cruise package, portions of your trip may be non-refundable, non-transferrable or subject to cancellation penalties.
If you have to cancel your trip before your departure, trip cancellation will cover those non-refundable costs as long as the reason for cancellation is covered under your policy.
Trip cancellation policies may also include coverage for trip interruption or delay, if you need to return home earlier or later than planned. When looking at policies, make sure to read up on the conditions, limitations and exclusions.
Considering how the travel industry has been fairly unreliable and unpredictable of late, it's highly recommended purchasing cancellation insurance for your trips.
How much does trip cancellation insurance cost?
In general, travel insurance costs about 4-10% of the total prepaid, non-refundable cost of the trip. For example, if your trip costs $2,500, the cost of travel insurance will likely range from $100-$250, but a $10,000 trip will have a slightly higher cost of $400-$1,000. When purchased on its own, trip cancellation insurance costs even less - with some estimates suggesting the average premium for trip cancellation insurance is around $170.
Can I buy just trip cancellation insurance only?
Yes. Many insurers offer trip cancellation insurance as a standalone package or as additional coverage as part of a travel medical insurance plan. Trip cancellation insurance is pretty affordable on its own, but purchasing it alongside a travel medical insurance plan will likely save you money when you bundle the policies together. Travel cancellation insurance policies may also cover trip delay and interruption, lost or stolen baggage and flight and travel accidents.
Is trip cancellation insurance worth buying?
Even if you’re completely healthy, any number of things beyond your control can derail your trip (see list of covered cancellations reasons below). You should consider travel cancellation insurance if the non-refundable portion of your trip is expensive, if you plan on travelling for a long time, if you book your trip far in advance, or if you’re a senior and/or a snowbird. The best time to buy travel insurance is as soon as your trip is booked, but you can usually buy it up to 48 hours before your trip.
What are covered reasons for trip cancellation?
It varies by policy, but medical and non-medical reasons for trip cancellation may include:
- A personal medical emergency (you or your travel companion)
- Medical emergency, hospitalization or death or an immediate family member
- You or your spouse becomes pregnant, and your departure date falls within nine weeks before or after your expected delivery date
- Global Affairs Canada issues a travel advisory for your destination
- Visa issues beyond your control
- Legal obligations such as jury duty or subpoena to appear as a witness in court
- Permanent job loss because of layoff or dismissal without cause, or a job transfer that requires moving
Can I purchase trip cancellation after booking a trip?
Yes, but the longer you wait the more expensive it could become. There also maybe a cut-off time to purchase before your trip For example, some insurance may not let you purchase cancellation insurance 7 days out from your flight.
It is always recommended to purchase it at the time of booking or soon after in order to find the most affordable coverage and to ensure your trip is protected from any potential cancellations.
Do travel insurance policies include trip cancellation?
Yes, but it will depend on the travel insurance company and their policy packages. Sometimes it is included in a standard travel insurance policy, other times it is considered a coverage addition to a standard policy. To ensure you have trip cancellation protection we recommend purchasing a comprehensive travel insurance policy, but if you are ever unsure of what's included be sure to ask the travel broker.
What is trip cancellation for any reason?
This is the most comprehensive and expensive form of trip cancellation insurance, but it provides the best protection. This can be thought of as no questions asked cancellation insurance, as you can cancel you trip for any reason prior to departure and receive full compensation in return.
Does my credit card cover trip cancellation insurance?
Some premium credit cards offer travel insurance (including trip cancellation insurance) as a benefit – in this case, you could potentially forego purchasing the coverage separately.
For more information, read our blog on the best credit cards for travel insurance.
Matt Hands, Business Director of Insurance
With 6+ years of experience at Ratehub.ca, Matt’s focus has been on growing its newest business unit, Insurance. He is a thought leader and a valuable resource to respected publications across Canada. read full bio
Learn more about insurance
learn more
Helpful travel insurance links
Travel insurance quotes
- Travel insurance quotes
Travel insurance basics
- Travel insurance by coverage
- Travel insurance by program
- Travel insurance by traveller
Travel insurance resources
- Travel insurance blog
- Travel insurance reviews
advertisem*nt
