You’ve made your itinerary and planned your vacation down to the minute. But what happens when something beyond your control forces you to change or cancel your travel plans? Nobody can predict the future, which is why trip cancellation insurance is a must-have for travellers.
Here are six situations that could be covered by your insurance.
Trip cancellation or modification in case of illness or accident
A family member or travel companion (or even you!) becomes too ill or injured to travel.
Or worse yet, a loved one dies. Your trip cancellation or modification coverage may apply in these unfortunate situations.
Trip cancellation due to bad weather
Your plane is grounded due to bad weather, the flight is cancelled because of an approaching storm, or your carrier is delayed.
Or maybe the weather has made the roads so bad that it's impossible to get to the airport.
Trip cancellation due to a Government of Canada travel advisory
After you’ve purchased your trip cancellation or modification coverage, or after you’ve increased your insurance amount, the Canadian government issues a travel advisory for your destination or type of trip. You may be able to modify or cancel your trip under the following conditions.
Advisory issued before your departure date
You need to cancel your non-essential trip because a travel advisory is still in effect 14 days or less before your planned departure.
Advisory issued after your arrival
A travel advisory is issued after you arrive at your destination, and your safety and security are at risk. Your coverage may apply if you change your travel plans and return to your province of residence.
Important: If the Government of Canada advises against all travel to your destination, you must interrupt your trip and return within 14 days of the advisory being issued. After that, your coverage might end.
Trip cancellation due to civic duty
You’ve been called to testify in court or summoned for jury duty.
Job loss forcing you to change your travel plans
Just before your trip begins, you lose your permanent employment that you’d had with the same employer for more than one year. As a result, you can’t afford to travel anymore. If this happens, contact your insurer to see if you can be reimbursed for any non-refundable expenses.
Major home damage making travel impossible
A disaster causes significant damage to your primary residence just before you leave, and you need to stay home to sort things out.
For a complete list of reasons covered under Desjardins Travel Insurance for trip cancellation or modification, see the summary of coverage.
What does trip cancellation insurance cover?
Some non-refundable travel expenses paid in advance may be covered, including:1
- Plane tickets
- Hotel reservations
- All-inclusive packages
So what’s not covered?
You’ve probably heard this before, but it’s important to always check the full list of exclusions. Trip Cancellation or Modification coverage can’t protect you from everything. Here are a few common examples:
Weather conditions
They’re not expecting much sun at your destination. You won’t be reimbursed if you cancel your trip.
Personal situation
Your relationship ends just before you leave. Even if this person was supposed to travel with you, the change in plans won’t be covered.
Work situation
Your boss won’t give you the time off, so you have to cancel your trip. Unfortunately, this isn’t covered. Make sure your time off has been approved before you book your trip.
Important documents
It’s the day of your departure, and your passport still hasn’t arrived. Or you get to the airport only to realize your passport has expired. Usually, this isn’t covered by your trip cancellation insurance.
Practical tips for trip cancellation insurance
- Review all your non-refundable trip expenses. Coverage is limited to the amount of insurance you purchased.
- Get trip cancellation insurance as soon as you purchase your trip or make your first deposit. Remember: Once you have a reason to cancel your trip, it’s too late to purchase this coverage.
- Take the time to read and understand the conditions, limitations and exclusions for your trip cancellation coverage, especially the exclusion for pre-existing conditions and injuries. They vary from one insurance company to the next.
- Cancellation coverage may be worthwhile even if you’re leaving in a few hours, as it also includes trip interruption coverage. After your departure, it may cover the following costs, depending on the circumstances and the conditions of your contract:
a. The unused and non-refundable portion of the costs you paid in advance
b. Living expenses that may arise if your return is delayed, for example
c. The extra cost of changing the date or time of your plane, boat, train or bus ticket