Trip Cancellation and Interruption Coverage
Trip Cancellation Insurance is a type of coverage designed to protect your financial investment by reimbursing you for non-refundable costs if you have to cancel your trip for a covered reason before you depart. It is one of the most important components of a comprehensive travel insurance for Canadians policy, providing a crucial safety net for your hard-earned vacation savings.
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Understanding Your Coverage: Cancellation vs. Interruption
Many people wonder, "How does trip cancellation insurance work?" It's a great question, and understanding the difference between cancellation and interruption is key. While they sound similar, they protect you at different stages of your journey.
Trip Cancellation Explained This coverage protects you before your trip begins. Imagine you've paid thousands for flights and a non-refundable hotel, but a week before you leave, you or a close family member have a medical emergency.
With Trip Cancellation coverage, you can file a claim to be reimbursed for those pre-paid costs that you would otherwise lose.
Trip Interruption Explained Trip Interruption Coverage, on the other hand, protects you during your trip. If you are already on your vacation in another country and need to cut it short to rush home for a covered reason, this benefit helps cover the cost of a last-minute, one-way flight. It can also reimburse you for the unused, non-refundable portions of your trip, like the hotel nights or tours you'll now miss.
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What are "Covered Reasons"? Policies typically cover a specific list of unforeseen events. Common covered reasons include the unexpected illness or injury of you, your travelling companion, or a close family member; the death of a family member; a natural disaster at your destination; or a government-issued travel advisory telling Canadians not to visit.
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Don't Risk It. Get Insured.
A 2024 study by the Canadian Travel Council found that nearly 1 in 6 international trips booked by families are altered or cancelled due to unforeseen events. This underscores the importance of protecting your travel investment before you go.
