What is Credit Card Trip Cancellation Insurance?

Are you a fan of stress-free travel? If so, travel insurance should be a top priority.

Credit card trip cancellation insurance protects you against specific travel emergencies that lead to cancellation before departure. This benefit helps you reclaim those pre-paid, non-refundable or non-transferable expenses linked to stubborn bookings.

We’ve packed everything you need to know about this policy into this post. Covering how it works, what to expect, plus how to pick the best credit card to keep you covered.

What Does Credit Card Trip Cancellation Insurance Cover?

Credit card trip cancellation insurance covers certain emergencies that prevent you from travelling. The timeline for claiming coverage starts from your booking to the start of your scheduled departure.

Depending on the plan, cardholders can seek coverage on the following:

• Medical emergencies such as unexpected illnesses or injuries to the cardholder or their family
• The death of the insured person or a death in the cardholder’s family
• Missing a departure flight due to a car accident or road closure
• Receiving a notice from the Department of Foreign Affairs that advises Canadians not to travel to the destination in question
• If the cardholder is a military reservist and is called into active duty before departure

Due to the severity of some of these cases, it’s probably best never to be forced into them, but it’s comforting to know you are covered by Credit Card Trip Cancellation Insurance if they arise.

What Does Credit Card Trip Cancellation Insurance Not Cover?

That said, here are some examples of what credit card cancellation insurance usually doesn’t cover:

• Reimbursement of travel points that will ultimately be lost
• Pre-existing medical conditions where symptoms or treatment began pre-departure
• Self-inflicted injury
• Missing a flight because you left for the airport too late

As easy as it is to skim through the terms and conditions, it’s crucial to be familiar with the coverage policies on your credit card to know which cases are covered and which ones are not.

Does Credit Card Trip Cancellation Insurance Cover Trip Interruption?

So you’ve already reached your destination, started your trip, and something happens requiring you to return home. This is called trip interruption.

Often part of the same conversation, trip cancellation and trip interruption insurance are distinct policies. Both of which can be found on certain credit card insurance plans.

For either policy, credit card benefits can reimburse you for non-refundable charges. While trip cancellation happens when the trip is terminated before taking place, trip interruption occurs when trips suddenly end due to unforeseen circumstances.

Does Credit Card Trip Cancellation Insurance Cover Airline Cancellations?

Sometimes, most of our travel expenses cover flight costs, so it’s no wonder airline coverage is at the top of most travel insurance concerns. 

Typically, when an airline cancels or delays your flight, it’s up to them to rebook your flight or reimburse you, but with other non-refundable expenses to consider, this only solves part of the problem.

That’s what makes credit card trip insurance so valuable. If your credit card is equipped with trip interruption insurance, you can also be reimbursed for any connecting flights you missed due to the initial delay. Not to mention, added costs for food, hotel stays, rental cars, or lost luggage. 

Keep a few things in mind with this type of coverage. For one, you’ll only be covered for bookings paid for by the insured credit card. Secondly, credit card trip interruption insurance is secondary coverage. This means you can’t file a claim with your card if the airline already provided you with vouchers for added accommodations. This also means that you may need to file claims with your primary insurance provider before your credit card company provides a reimbursement.

How Do You Make a Credit Card Trip Cancellation Claim?

When making a credit card trip cancellation claim, make sure your case is covered by your credit card’s insurance policy. To do this, you’ll need to read your card’s travel insurance certificate, which should also provide you with the contact information for the claim.

To file a credit card trip cancellation (or interruption) claim, notify your credit card provider as soon as possible. Providers may need time to approve certain cases, plus some providers may issue a specific timeline for you to follow. 

Make sure you have all the appropriate documentation for your claims – whether that be invoices, receipts, ticket copies, or medical records.

Part of being prepared is also about keeping all your bookings in one place. This is where that tricky fine print becomes so important. Even if you split your trip costs between two credit cards, both with trip cancellation and trip interruption coverage, some cards will require the whole trip to be paid for on the same card to claim insurance benefits.

To keep things simple, invest in one credit card that has trip cancellation and trip interruption insurance and use that card exclusively. Splitting things up can complicate claims, cancel reimbursements and cost extra money.

What Kinds of Reimbursements Can You Expect With Credit Card Trip Cancellation Insurance?

Okay, let's talk about money. The value of your credit card trip cancellation insurance reimbursement will depend on the service being reimbursed and the credit card company providing coverage. Always check your credit card agreement for coverage estimates, ranges, and terms.

How to Select the Best Credit Card for Credit Card Trip Cancellation Insurance?

As we’ve established, credit card trip cancellation insurance differs from card to card. It’s important to select a credit card with insurance policies tailored specifically to your travel needs. 

For instance, a frequent traveler may be more willing to pay a larger annual fee for their insurance (think about it, the more you travel the more likely you might need some sort of coverage). Whereas someone who’s planning to take only one trip a year, or who is unsure when their next trip will take place, may not want to make the same investment. 

Likewise, if you often travel with your family, you might want to pick a card that covers travel partners. Or, if you’re a long-term traveller, you’ll want to see the card’s maximum length of trip covered.

Conclusion

When it comes to travel insurance knowledge, it’s impossible to overpack. Credit card trip cancellation insurance provides a solution to non-refundable and non-transferable expenses.

Pay close attention to travel insurance policies, select a card that works for you, and keep your trip coverage tucked inside your back pocket – literally!

Frequently Asked Questions

How does credit card trip cancellation work with a credit card?

Some credit card companies offer trip cancellation as an added benefit to cover certain non-refundable and non-transferable travel charges.

Does credit card trip cancellation cover any circumstance?

No, credit card trip cancellation insurance will only cover circumstances specified by the credit card company.

How do I know if my credit card has trip cancellation insurance?

Check your credit card’s certificate of insurance to see whether trip cancellation is covered, plus which circumstances are covered specifically. Typically this certificate comes with your credit card or you can locate it on your credit card company’s website.