Planning a trip is exciting. However, as any seasoned traveller knows, life doesn't always go according to plan. Things like illness, family emergencies, severe weather, or even airline disruptions can derail a trip in an instant. That's where trip cancellation and interruption insurance comes into play.
Trip cancellation and interruption insurance ensures that you are able to get your money back for expenses such as flights, hotels, and car rentals in the event you have to cancel your trip or end it early. It's an essential part of any travel insurance policy and can be a lifesaver when plans go awry.
In this ultimate guide to trip cancellation and interruption insurance, we'll walk you through what this type of coverage is, the common situations it protects against, what’s not typically included, and how to choose the right plan for your needs. By the end, you'll feel more confident about protecting your travel investment and ready to embark on your trip with complete peace of mind.
What is Trip Cancellation and Interruption Insurance?
Trip cancellation and interruption insurance is part of the coverage offered by a travel insurance policy, and it is designed to reimburse you for non-refundable expenses if your trip is cancelled before it starts or cut short after it begins for a covered reason.
Trip cancellation coverage can allow you to receive a refund for bookings like flights, hotels, and tours if you have to cancel your trip before departure. Trip interruption coverage, meanwhile, covers expenses if your trip is interrupted mid-journey. This could include returning home early, resuming your trip later, or paying for extra accommodations and meals while you sort things out.
Common Scenarios Covered by Trip Cancellation and Interruption Insurance
Life is unpredictable, and there are a lot of different reasons why a person may need to cancel a trip or end it early. Here are a few common scenarios for both cancellation and interruption that are typically covered by a travel insurance policy:
Reasons for Trip Cancellation
You may need to cancel your trip before departure for reasons such as:
- Medical emergencies: if you or your travelling companion becomes ill or injured before leaving.
- Family emergencies, such as the hospitalization or death of a close relative.
- Legal obligations, like being called for jury duty or subpoenaed to court.
- Natural disasters that make your destination unsafe or otherwise prevent you from travelling.
- Work-related issues, such as unexpected layoffs or being asked to work during your scheduled trip.
Without insurance, the money you spent on flights, cruises, tours, or resorts could be lost. With insurance, you can file a claim to recover those expenses.
Reasons for Trip Interruption
Even after you’ve arrived, circumstances may force you to cut your trip short or delay your return home. Examples include:
- Sudden illness or injury while travelling.
- Family emergencies back home, such as a loved one falling ill.
- Travel delays caused by weather or airline disruptions that leave you stranded.
- Natural disasters occurring at your destination.
- Missed connections leading to lost portions of your trip.
In these cases, trip interruption coverage can help cover additional transportation, meals, and lodging expenses—or even reimburse you for unused portions of your trip.
What isn't Typically Covered?
While a good travel insurance policy, such as those offered by GMS, will offer broad protection, there are a few scenarios that trip cancellation and interruption insurance doesn't tend to cover. This includes scenarios like:
1. Change of Mind
Deciding not to travel or deciding to end your trip early because you simply changed your mind isn't covered. Coverage only applies when specific, unexpected events occur.
2. Pre-Existing Conditions
If you have a medical condition that hasn’t been stable for a certain period of time, your travel insurance policy may not cover expenses related to that condition. This includes having to cancel or interrupt your trip due to a medical emergency caused by the condition. That's why it's essential to understand your policy's stability clause and notify the provider of any pre-existing conditions before you purchase the policy.
3. Travel Advisories
If the Canadian Government issues a travel advisory for your destination before you book, cancellation related to that advisory likely won’t be covered. However, if an advisory is issued after you book and it directly impacts your trip, certain protections may apply.
4. Airline Strikes
Labour disruptions can create massive headaches for travellers. If a strike occurs after you book, you may have coverage for cancellations or delays. However, if it was announced beforehand and you still book, coverage will likely not be included.
How to Choose the Right Plan
Before choosing a travel insurance policy, it's always important to carefully research your options. Factors like coverage, cost, and exclusions are key things to consider if you want to choose a policy that is well-suited for your situation and avoid any unpleasant surprises. As you go about comparing policies, here are a few tips to keep in mind:
1. Assess Your Trip
If you're trying to decide whether or not trip cancellation and interruption insurance is worth the cost, start by assessing your trip and the total cost of all non-refundable expenses. This can include airfare, cruises, lodging, tours and excursions, car rentals, and any other non-refundable booking. The more of these expenses that you have, the more important it becomes to protect your trip.
2. Understand Coverage Limits
Every policy has a maximum payout limit for claims. If this limit is exceeded, you'll have to pay the difference out of pocket, even if it is a covered expense. Be sure to check the coverage limit on the policy, and make sure that it's sufficient to cover all your non-refundable expenses.
3. Look for a Stability Clause
If you have a pre-existing medical condition, it is essential to understand the stability period required for coverage. For example, a policy may require your condition to have been stable for 90 days prior to departure in order for the policy to cover cancellation or interruption caused by the condition.
4. Read the Policy Wording
This may not be the most exciting part about planning a trip, but it is important. Reviewing your official policy documents ensures you understand exactly what is and isn’t covered. It'll help you have peace of mind and prevent an unpleasant surprise from turning an already difficult situation into something even more upsetting.
Protecting Your Trip With GMS TravelStar® Travel Insurance
GMS’s TravelStar® Trip Cancellation and Interruption Insurance is built with Canadian travellers in mind. It helps protect your financial investment if your trip is cancelled, interrupted, or delayed for many different events beyond your control.
Some of the highlights of this robust travel insurance policy include:
- Protection for both cancellation and interruption scenarios.
- Coverage for a wide range of unexpected events.
- Peace of mind that your non-refundable travel expenses are safeguarded.
- Family-friendly policies—up to six kids under 16 are included on your policy for free.
Unexpected events can happen, but they don't have to put your travel plans or your finances at risk. A travel insurance policy from GMS provides the security you need to travel with confidence.
To learn more about what sets GMS TravelStar® Travel Insurance apart from other travel insurance policies and to request a free quote for your trip, check out the official GMS Trip Cancellation & Interruption Insurance page.