Trip Cancellation

Read time: 3 mins

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

What is travel cancellation insurance?

Trip cancellation insurance allows you to protect the investment you’ve made in non-refundable, pre-paid expenses if you need to cancel your travel plans due to unforeseen events listed within the policy document. These expenses may include your flight, hotel, rental car, event tickets, excursion, cruise, and more.

Often a trip cancellation protection policy will also include additional benefits to cover trip interruption, travel delay, or supplier default. 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?

Travel cancellation insurance protects your travel plans in case you need to cancel your trip.

What does trip cancellation cover?

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

Covered reasons vary by policy, but common reasons for trip cancellation may include:

  • A medical emergency for you or your travel companion
  • A medical emergency, hospitalization or death of an immediate family member
  • A travel advisory for your destination
  • 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 extremely glad you invested in a plan that includes trip cancellation insurance. However, always keep in mind that coverage varies by plan and travellers are reminded to read their policy wording carefully to confirm coverage. Our Customer Care Team is available to help review the fine print of your policy if you need help.

Does travel insurance cover accommodation cancellation?

Trip cancellation protection covers all pre-paid, nonrefundable expenses, including your accommodations. This means your hotel, vacation rental, resort, or any other type of nonrefundable accommodation would be covered by your insurance for cancelled trips.

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 also popular coverage for travellers who are planning for a trip far in advance as 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.