Protect your vacation with 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.

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.

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.

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.

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

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.

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.

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.