What is Trip Cancellation and Interruption Insurance and How Does it Work? (2024)

The Trip Cancellation and Interruption plan provides coverage for eligible travel expenses in case your trip is interrupted or cancelled. It can be purchased separately or as part of a medical travel insurance plan. Let's dive into understanding the difference between trip cancellation and trip interruption.

What is the difference between trip cancellation and trip interruption insurance?

Sometimes, trip cancellation and trip interruption are used interchangeably but they do cover different aspects of your travel.

A trip cancellation plan provides coverage if your trip is cancelled for a covered reason before you depart for your trip. The benefits could include reimbursing you for the cost of non-refundable travel expenses, like trip deposits and flight change fees, if your trip is cancelled because of a covered cause.

On the other hand, a trip interruption plan provides coverage after you depart on your trip. The benefits could include paying for your trip home or to your next destination if your trip is interrupted because of a covered cause.

It is good to keep in mind that trip cancellation and interruption plan may not provide coverage for medical expenses you incur on your trip. So, you may want to purchase a travel medical plan if you are looking for travel medical coverage.

The benefits provided under these types of plans vary by insurer. Therefore, it is a good idea to review the plan details before you purchase.

Highlights:

  • How does a trip cancellation and interruption insurance plan help?
  • Why should I purchase a Trip Cancellation and Interruption insurance plan?
  • What is not covered by trip cancellation and interruption insurance?
  • Do I need to get travel medical insurance separately?
  • Who is eligible for buying trip cancellation and interruption insurance?
  • How much does trip cancellation and interruption cost?
  • Is trip cancellation and interruption insurance worth buying?
  • Applying for Trip Cancellation and Interruption plan with TD Insurance

How does a trip cancellation and interruption plan help?

If you've faced any of the covered causes as mentioned in your policy, it would be advisable to report the incident as soon as possible to the insurer. Some policies may require you to report the cancellation or interruption within a specified time, therefore, it is best to review the policy documents to understand the reporting requirements.

The requirements for a claim are generally to submit the completed claims form along with any required documents and information. If you meet the conditions for a successful claim based on your coverage, you may be refunded or compensated for some of the financial losses you faced. The benefits, limitations and exclusions under a trip cancellation and interruption plan vary by policy and insurer. The best practice is to review the policy

Why should I purchase a Trip Cancellation and Interruption insurance plan?

This type of plan can reimburse you if your trip is cancelled or interrupted for a covered reason. Some examples of covered reasons could be:

  • Sickness, injury, death, or quarantine of a member of your travel party.
  • A delay that causes you to miss or interrupt any part of your covered trip due to weather, mechanical reasons, or travel advisory.
  • Loss or damage to your baggage and personal effects due to theft, burglary, fire, or transportation hazards.
  • Death or emergency hospitalization of your host at the destination.
  • Involuntary loss of permanent employment.

What is not covered by trip cancellation and interruption insurance?

Every insurer has their own list of exclusions and limitations. Also, you should be aware that any benefit paid will be for eligible expenses and only up to the defined limit as per your policy. Here are some of the exclusions you could come across:

  • Pre-existing medical conditions
  • Self-inflicted injuries
  • Getting involved in criminal activities
  • Labour disruptions or strikes
  • Giving birth to a child during your trip

While these are just a few of the exclusions you may find, it's best to check your insurance policy for a detailed list. Also, you can check with your travel insurance provider if you have questions.

Do I need to purchase travel medical insurance separately?

As we've discussed above, the trip cancellation and interruption plan doesn't include any benefits for travel medical expenses. A separate travel medical insurance plan can be purchased that could help cover costs for hospitalization or doctor's fees, ambulance services, diagnostic services, prescription drugs or even medical appliances. Several insurers provide a comprehensive bundle such as TD Insurance Multi-Trip All Inclusive Travel Insurance Plan1 that includes medical and trip cancellation and trip interruption benefits in one plan.

Who is eligible for buying trip cancellation and interruption insurance?

No matter which insurer you choose, it's always a good idea to check your eligibility before you apply for the plan. Here are some eligibility requirements you may have to meet if you are applying trip cancellation and interruption insurance with TD Insurance:

  • You are a Canadian resident
  • You are covered by the government health insurance plan of your province or territory of residence during your trip and at the time a claim is incurred.
  • Minimum age requirement of 15 days old.
  • There are certain medical conditions that could make you ineligible for coverage under a selected plan.

Please read the policy or contact us for more details on eligibility.

How much does trip cancellation and interruption insurance cost?

There are several factors on which the cost of a trip cancellation and trip interruption plan may depend on. A few things that may determine the cost of such a policy are:

  • The total cost of your trip. This may include the cost of non-refundable purchases like flights, cruises and hotels or any other prepaid travel arrangement.
  • The amount of coverage you wish to purchase
  • The number of travelers who will require insurance coverage
  • Your age and the condition of your health
  • The duration of the trip

Is trip cancellation and interruption insurance worth buying?

Whether you should purchase trip cancellation and interruption insurance depends on your personal circ*mstances. To determine whether you should purchase this type of insurance, you can consider the following:

  • You are travelling internationally or out of your province
  • You have multiple layovers as the more connecting flights you have, higher are the chances of facing a cancellation or interruption.
  • You are looking to cover the cost to repair or replace your baggage and personal effects due to loss or damage by reason of theft
  • You have little to no coverage through your employer provided travel plan or limited benefits with your travel credit card

Applying for Trip Cancellation and Interruption plan with TD Insurance

You can apply for TD Insurance Trip Cancellation and Interruption Plan online2. We will let you know of your eligibility provide you with an estimate of how much the coverage might cost based on your response. If you're satisfied with the estimate, you could proceed to purchase.

While experience is a great teacher, it doesn't hurt to get a few tips along the way to help make an informed decision in case of trip cancellations and interruptions.

FAQs Related to Trip Cancellation and Interruption

Does trip cancellation and interruption insurance only cover the cost of cancelled flights?

The trip cancellation and interruption plan can reimburse you for more than just the cost of flights or other travel arrangements like a cruise. Such plans could also cover the cost of meals, accommodations, taxi transportations if your trip is cancelled or interrupted for a covered reason.

Different plans could have different benefits, it is important to read the policy carefully before purchasing.

Can I buy trip cancellation and interruption insurance after booking a trip?

Generally, you can purchase trip cancellation and trip interruption insurance after you book your trip. However, you cannot purchase the insurance after you depart for your trip. Please check with your insurer for exact details.

Is it better to purchase an all-inclusive travel insurance package which includes medical insurance, or a trip cancellation and interruption insurance plan?

Whether you get an all-inclusive travel insurance plan, or a Trip cancellation and Trip Interruption plan is up to you. If you do not have travel medical coverage, it could be a good idea to purchase an all-inclusive plan which includes medical and non-medical coverage.

Is it sufficient if my credit card provides Trip Cancellation and Trip Interruption insurance?

The answer differs based on the type of traveler you are and the coverage that is associated with your credit card. If compared with a trip cancellation and trip interruption insurance policy provided by an insurance company, the one provided by a credit card may or may not fulfill your needs. While planning your next trip you should consider understanding the coverage on your credit card and if it is adequate to cover medical and/or non-medical situations.

Is there any age restriction for applying for trip cancellation insurance?

There is a minimum age that varies with each insurer. Please check with your insurer for details.

What is Trip Cancellation and Interruption Insurance and How Does it Work? (2024)

FAQs

What is Trip Cancellation and Interruption Insurance and How Does it Work? ›

Trip interruption coverage exists to cover you for any unexpected or uncontrollable circ*mstances that may force a premature return home from your trip. Examples include a serious injury, illness, a family emergency back home, quarantine, evacuation or an early departure.

What does trip cancellation and interruption insurance cover? ›

Sickness, injury, death, or quarantine of a member of your travel party. A delay that causes you to miss or interrupt any part of your covered trip due to weather, mechanical reasons, or travel advisory. Loss or damage to your baggage and personal effects due to theft, burglary, fire, or transportation hazards.

What is not covered by trip cancellation insurance? ›

Claims due to known, foreseeable, or expected events, epidemics, government prohibitions, warnings, or travel advisories or fear of travel are generally not covered (coverage can vary by state.)

What does up to 100% reimbursem*nt for covered trip cancellation and interruption mean? ›

The details vary from provider to provider and with each plan. If you do need to cancel, you will be reimbursed 100% of the prepaid, non-refundable trip cost for which you are insured and can provide documentation. All of this coverage, is only if the trip is cancelled due to a specific, unforeseen covered reason.

Is it good to get trip cancellation insurance? ›

When booking travel, particularly expensive trips consisting of nonrefundable reservations, it makes sense to consider trip cancellation insurance since it can protect your deposit if your plans do not materialize due to unforeseen events.

What qualifies as trip interruption? ›

Trip interruptions are when you need coverage for a trip unexpectedly cut short, and you return home for several covered reasons. Trip delay insurance covers travel plans that have been delayed, such as a late or canceled flight, which created a domino effect on other travel plans and reservations.

Does a Visa credit card cover trip cancellation? ›

When you pay the full price of your tickets with your valid and active Visa card, you, your spouse and dependent children under 23 years of age are each automatically covered for prepaid travel and/or lodging expenses that are not recoverable if a covered trip is cancelled due to serious illness or injury, or due to ...

What is the difference between trip cancellation and trip interruption? ›

Trip cancellation kicks in if certain medical or non-medical events occur before you leave home, so you're reimbursed on all or some costs, depending on your coverage. Trip interruption reimburses you if a similar set of events occur after you leave home and during your trip and you're forced to return home.

Do credit cards have trip cancellation insurance? ›

A number of credit cards provide various types of travel insurance (including trip cancellation, trip interruption and car rental loss and damage insurance) when you use your card to pay for flights, rental cars and other travel expenses.

How does credit card trip cancellation insurance work? ›

With both, your credit card company would reimburse you for non-refundable expenses, in the event that your trip is interrupted while in progress or is cancelled outright. Trip cancellation insurance applies when a trip has to be cancelled before it's even started.

When to buy trip interruption insurance? ›

If you plan to travel outside Canada—even for a day in the United States—you should buy trip interruption and travel health insurance before you leave.

What are valid reasons to cancel a flight and get a refund? ›

Top Reasons Most People Cancel Trips
  • Injury or Illness. Sickness and injury are the top reasons for cancelling a trip. ...
  • Death. ...
  • Natural Disaster. ...
  • Acts of Terrorism/Evacuation. ...
  • Financial Default of the Travel Company.
  • Death or Hospitalization of Host.
  • Residence Damage. ...
  • Jury Duty or Military Deployment.

What reimbursem*nt do you get if your flight is Cancelled? ›

If an airline cancels your flight less than 14 days before departure and you choose to cancel your trip entirely, you're entitled to a refund of both your plane ticket and any pre-paid baggage fees (in most cases). This typically applies even if you have non-refundable tickets.

What is the difference between travel insurance and trip cancellation insurance? ›

Travel protection focuses primarily on trip cancellation and gives limited protection for unforeseen circ*mstances that may cause you to cancel or interrupt your trip. Travel insurance supplies broader coverage, protecting against a wider range of possible financial losses during your travels.

What is not covered by Allianz travel insurance? ›

Travel insurance does not cover losses that arise from expected or reasonably foreseeable events or problems. In general, you could not reasonably foresee crashing your car, catching the flu or falling off a camel.

Does a credit card cover flight cancellation? ›

Your credit card's trip cancellation insurance may reimburse you for prepaid flights and hotel stays booked with your credit card. Trip interruption insurance (for trips that end earlier than planned) may cover expenses like the cost of a last-minute flight home.

Which provides up to $2500 for non refundable passenger fares if your trip is canceled or cut short by sickness or other ›

Bank of America® Premium Rewards® credit card: Up to $2,500 for non-refundable passenger fares if your trip is canceled or cut short by sickness or other covered situations.

Does trip interruption insurance cover food? ›

Travel Delay Coverage provides reimbursem*nt for additional expenses if your flight is delayed, such as an extra night in a hotel or a meal at a restaurant. This coverage is about having a 'lifeline' to call when something happens. Medical emergencies, stolen baggage, lost passports, cancelled flights.

Does travel insurance cover flight delays and cancellations? ›

Cancellation protection for flights is typically included with standard travel insurance, but if it's not enough for your needs, you can buy dedicated cancellation insurance as an add-on or as a standalone policy.

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