Trip cancellation protection can help save you money should your dream vacation hit a last minute snag.
Travel enthusiasts heading out on vacation might worry about the financial repercussions of a cancelled trip. However, if you use a credit card that provides trip cancellation insurance, you’ll be protected against such losses.
Some of the cards on our best credit cards Canada list feature impressive insurance packages as part of their perks. Here’s everything you need to know about trip cancellation insurance credit cards and coronavirus coverage.
3 best trip cancellation cards
Scotiabank Passport® Visa Infinite* CardÂ
Earn up to $1,300* in value in the first 12 months, including up to 40,000 bonus Scene+ points*
American Express® Aeroplan®* Reserve Card
Earn up to 85,000 Welcome Bonus Aeroplan®* points
National Bank World Elite® Mastercard®
Get up to $1,460 in benefits and rewards upon enrollment*
How does trip cancellation work?
Trip cancellation insurance is a policy that covers a portion or all of the non-refundable travel-related expenses in the event that you need to cancel your travel plans. It’s not the same as trip interruption insurance, which kicks in after departure. Trip cancellation insurance is only applicable before your travel actually starts.
For credit cards that include this coverage, the amount of reimbursement varies by card, though on average coverage ranges from $1,500 to $2,500 per eligible person up to a max of $5,000 to $10,000 per trip. If you consider how much travellers spend on non-refundable flights and hotels, it quickly becomes clear why credit cards with trip cancellation insurance are so popular and can potentially save you thousands of dollars.
Some trip cancellation insurance policies often cover not only the cardholder but a travel companion (usually a spouse and/or dependent children who are travelling with you). Some policies may even cover grandparents, grandkids or family-in-law members so check your policy for details.
Of course, there are some catches. You will likely have to provide an acceptable reason for cancelling, backed by documentation (more on this later). Plus, aside from having an acceptable reason to file a claim, credit cards also have different rules and loopholes about when a trip’s expenses are eligible for reimbursement. For instance, some insurers require 100% of the eligible expenses to be charged to the card, while others just require that 75% of the eligible expenses be charged.
The bottom line? Read your policy and contact your credit card provider to ensure you understand the conditions.
What are the covered reasons for trip cancellation?
You can’t just cancel a trip and get reimbursed for any reason. Credit cards with trip cancellation insurance have very strict parameters about what is and what is not considered an acceptable reason to cancel a trip. Some examples of acceptable cancellation reasons may include (but are not limited to) the following:
- An unexpected death, injury, or illness of the cardholder, an immediate family member, or a travel companion. Note: you may be required to submit documentation/written confirmation from an authority figure.
- Adverse reactions to a vaccination required for travel
- Jury duty
- An official government travel advisory against travel to your destination
- A call to service
- The conference or business meeting you were scheduled to attend is cancelled
- Your travel provider goes bankrupt
- A delay causing a missed connection due to weather, an accident, natural disasters, or mechanical failure
What is not covered by trip cancellation insurance?
It depends on the policy offered by your credit card. But some examples of non-acceptable cancellation reasons include:
- A pre-existing condition
- Self-injury or suicide
- Illness or injury due to alcohol or drugs
- Acts of terrorism and war
- Participation in a dangerous sport
An important note: some credit cards may not cover the loss of redeemed rewards. So, if you used Aeroplan Miles or Air Miles to book a flight, it may not be possible to get back the value of the points that you lost. However, some loyalty programs may offer some flexibility for bookings so be sure to contact your loyalty program to confirm their policy.
Our picks for the best credit cards for trip cancellation insurance
There are numerous travel credit cards in Canada with excellent cancellation insurance. But here are our choices for the best credit cards with trip cancellation insurance.
Best overall
up to $1,300* value
Welcome Bonus
$926
First Year Value
$0
Annual Value
Welcome Bonus: Earn up to $1,300* in value in the first 12 months, including up to 40,000 bonus Scene+ points* Expires Jul 01, 2025
Get this card if you...
-
travel often and want premium travel perks like lounge access
-
want to avoid paying foreign exchange fees
-
appreciate a good welcome offer
Annual Fee & Annual Interest Rates
$150
Annual Fee
20.99%
Purchase
22.99%
Cash Advance
22.99%
Balance Transfer
Our Take
The Scotiabank Passport® Visa Infinite* Card is a travel rewards credit card offering elevated Scene+ points on eligible grocery store purchases, dining, entertainment, and daily transit, with a standard earn rate on all other purchases. Cardholders benefit from no foreign transaction fees, six complimentary airport lounge visits per year through the Visa Airport Companion Program, and comprehensive travel insurance.
Eligibility
Excellent (740+)
Recommended Credit Score
$60,000
Required Annual Personal Income
$100,000
Required Annual Household Income
Pros
-
No FX fees means the card saves you significant expenses on foreign transaction fees
-
Earn up to 3x Scene+ points per $1 spent on eligible purchases
-
Flexible and straightforward redemption program
-
Visa acceptance globally compared to American Express, especially outside major cities
-
Enjoy six annual visits to airport lounges
-
Robust insurance offerings, including extended travel emergency medical coverage
-
Access to Visa Infinite Program benefits, with added advantages like a free supplementary card
Cons
-
High annual fee
-
Limited rewards categories for earning reward max rate on purchases
-
Primarily best for travel within Canada
Annual Interest Rates
20.99%
Purchase
22.99%
Cash Advance
22.99%
Balance Transfer
Fees
$150
Annual Fee
$0
Foreign Transaction
5.00%
Balance Transfer
$5
Cash Advance
Rewards Scene+
3x
Scene+ points¹ on every $1 you spend at Sobeys, Safeway, IGA, Foodland and participating Co-ops and more
2x
Scene+ points¹ for every $1 you spend on other eligible grocery stores, dining, eligible entertainment purchases and eligible daily transit options (including ride shares, buses, subways, taxis and more)
4x
Scene+ points for every dollar you spend on hotel bookings, car rentals, and things to do with Scene+ Travel, Powered by Expedia
1x
Scene+ point for every $1 spent on all other eligible everyday purchases
Insurance Benefits
$2,000,000
Emergency medical insurance amount
$3
Emergency medical insurance over 65 days
$500,000
Travel accident insurance amount
$1,000
Hotel burglary insurance
$65,000
Rental car insurance amount
Earn up to $1,300 in value in the first 12 months, including up to 40,000 bonus Scene+ points*.
Potential First Year Value = up to $1,345 |
Our Take
The Scotiabank Passport® Visa Infinite* Card is a travel rewards credit card offering elevated Scene+ points on eligible grocery store purchases, dining, entertainment, and daily transit, with a standard earn rate on all other purchases. Cardholders benefit from no foreign transaction fees, six complimentary airport lounge visits per year through the Visa Airport Companion Program, and comprehensive travel insurance.
Eligibility
Excellent (740+)
Recommended Credit Score
$60,000
Required Annual Personal Income
$100,000
Required Annual Household Income
Pros
-
No FX fees means the card saves you significant expenses on foreign transaction fees
-
Earn up to 3x Scene+ points per $1 spent on eligible purchases
-
Flexible and straightforward redemption program
-
Visa acceptance globally compared to American Express, especially outside major cities
-
Enjoy six annual visits to airport lounges
-
Robust insurance offerings, including extended travel emergency medical coverage
-
Access to Visa Infinite Program benefits, with added advantages like a free supplementary card
Cons
-
High annual fee
-
Limited rewards categories for earning reward max rate on purchases
-
Primarily best for travel within Canada
Annual Interest Rates
20.99%
Purchase
22.99%
Cash Advance
22.99%
Balance Transfer
Fees
$150
Annual Fee
$0
Foreign Transaction
5.00%
Balance Transfer
$5
Cash Advance
Rewards Scene+
3x
Scene+ points¹ on every $1 you spend at Sobeys, Safeway, IGA, Foodland and participating Co-ops and more
2x
Scene+ points¹ for every $1 you spend on other eligible grocery stores, dining, eligible entertainment purchases and eligible daily transit options (including ride shares, buses, subways, taxis and more)
4x
Scene+ points for every dollar you spend on hotel bookings, car rentals, and things to do with Scene+ Travel, Powered by Expedia
1x
Scene+ point for every $1 spent on all other eligible everyday purchases
Insurance Benefits
$2,000,000
Emergency medical insurance amount
$3
Emergency medical insurance over 65 days
$500,000
Travel accident insurance amount
$1,000
Hotel burglary insurance
$65,000
Rental car insurance amount
Earn up to $1,300 in value in the first 12 months, including up to 40,000 bonus Scene+ points*.
Potential First Year Value = up to $1,345 |
Why we chose the Passport
The Scotiabank Passport® Visa Infinite* Card is a good option if you want the frills of a premium card but without paying a hefty annual fee. The trip cancellation insurance is first-rate: cardholders are automatically insured for up to $2,500 per person for eligible expenses (maximum $10,000 per trip) when you charge at least 75% of such trip expenses to your card and are forced to cancel/interrupt your trip for eligible causes. Also covered by this policy are your spouse, one travelling companion, and your eligible dependent children travelling with you.
Disclosures:
Rates, fees and other information are effective as of January 3, 2025. Subject to change.
Conditions Apply. Visit here for the Scotiabank Passport® Visa Infinite* Card to learn more.
*See Card Provider's website and Card Application for complete card details, terms and current offers. Reasonable efforts are made to maintain accuracy of information.
Best for Aeroplan
up to 85,000 points
Welcome Bonus
$3,011
First Year Value
$411
Annual Value
Welcome Bonus: Earn 60,000 Aeroplan®* points* after spending $7,500 on your Card within the first 3 months as a new Cardmember.*
Get this card if you...
-
fly with Air Canada and want priority boarding and lounge access
-
looking to earn Aeroplan points faster through higher earn rates
-
want comprehensive travel insurance to ensure peace of mind
Annual Fee & Annual Interest Rates
$599
Annual Fee
21.99%
Purchase
21.99%
Cash Advance
Our Take
The American Express® Aeroplan®* Reserve Card is a premium travel credit card tailored for frequent Air Canada travelers, offering elevated rewards on Air Canada purchases and dining, along with comprehensive travel benefits such as priority airport services and lounge access. Cardholders also enjoy extensive insurance coverage and an annual worldwide companion pass, enhancing both the value and convenience of their travel experiences.
Eligibility
Good (620 - 670)
Recommended Credit Score
$0
Required Annual Personal Income
$0
Required Annual Household Income
Pros
-
Generous signup bonus where you can earn up to 85,000 Aeroplan points
-
High earn rates on Air Canada, dining, and food delivery
-
Extensive travel perks like priority check-in, boarding, and free first eligible checked bag on Air Canada flights
-
Complimentary access to select Air Canada Maple Leaf Lounges within North America
-
Toronto Pearson Airport benefits including priority security, complimentary valet parking, and discounts on parking and car care services
-
Annual worldwide companion pass at a fixed base fare between $99 and $599 CAD (plus taxes and fees)
-
$100 NEXUS statement credit every 4 years
-
Robust insurance coverage including emergency medical
-
Access to Amex Experiences such as movie premieres
-
No minimum income requirement
Cons
-
High annual fee of $599
-
Lower acceptance when compared to Visa and Mastercard
-
High spending to unlock signup bonus
-
Limited high-earning categories
-
2.5% foreign transaction fee
-
Priority perks limited to Air Canada flights
Annual Interest Rates
21.99%
Purchase
21.99%
Cash Advance
28.99%
Penalty
Fees
$599
Annual Fee
$2.5
Foreign Transaction
Rewards Aeroplan
3X
the points on eligible purchases made directly with Air Canada®* and Air Canada Vacations®*
2X
the points on eligible Dining and Food Delivery purchases in Canada
1.25X
the points on everything else
Insurance Benefits
$5,000,000
Emergency medical insurance amount
$500,000
Travel accident insurance amount
$1,000
Hotel burglary insurance
$85,000
Rental car insurance amount
Earn 60,000 Aeroplan®* points* after spending $7,500 on your Card within the first 3 months as a new Cardmember.*
Plus, earn 25,000 Aeroplan®* points* when you spend $2,500 in month 13.*
*Current or former Cardmembers with this Card are not eligible for these offers. Other terms apply.
Our Take
The American Express® Aeroplan®* Reserve Card is a premium travel credit card tailored for frequent Air Canada travelers, offering elevated rewards on Air Canada purchases and dining, along with comprehensive travel benefits such as priority airport services and lounge access. Cardholders also enjoy extensive insurance coverage and an annual worldwide companion pass, enhancing both the value and convenience of their travel experiences.
Eligibility
Good (620 - 670)
Recommended Credit Score
$0
Required Annual Personal Income
$0
Required Annual Household Income
Pros
-
Generous signup bonus where you can earn up to 85,000 Aeroplan points
-
High earn rates on Air Canada, dining, and food delivery
-
Extensive travel perks like priority check-in, boarding, and free first eligible checked bag on Air Canada flights
-
Complimentary access to select Air Canada Maple Leaf Lounges within North America
-
Toronto Pearson Airport benefits including priority security, complimentary valet parking, and discounts on parking and car care services
-
Annual worldwide companion pass at a fixed base fare between $99 and $599 CAD (plus taxes and fees)
-
$100 NEXUS statement credit every 4 years
-
Robust insurance coverage including emergency medical
-
Access to Amex Experiences such as movie premieres
-
No minimum income requirement
Cons
-
High annual fee of $599
-
Lower acceptance when compared to Visa and Mastercard
-
High spending to unlock signup bonus
-
Limited high-earning categories
-
2.5% foreign transaction fee
-
Priority perks limited to Air Canada flights
Annual Interest Rates
21.99%
Purchase
21.99%
Cash Advance
28.99%
Penalty
Fees
$599
Annual Fee
$2.5
Foreign Transaction
Rewards Aeroplan
3X
the points on eligible purchases made directly with Air Canada®* and Air Canada Vacations®*
2X
the points on eligible Dining and Food Delivery purchases in Canada
1.25X
the points on everything else
Insurance Benefits
$5,000,000
Emergency medical insurance amount
$500,000
Travel accident insurance amount
$1,000
Hotel burglary insurance
$85,000
Rental car insurance amount
Earn 60,000 Aeroplan®* points* after spending $7,500 on your Card within the first 3 months as a new Cardmember.*
Plus, earn 25,000 Aeroplan®* points* when you spend $2,500 in month 13.*
*Current or former Cardmembers with this Card are not eligible for these offers. Other terms apply.
Why we chose the Aeroplan Reserve
Along with travel insurance coverage including emergency medical, trip interruption and car rental insurance, the American Express® Aeroplan®* Reserve Card comes with trip cancellation insurance. You’ll get reimbursed for the non-refundable and non-transferable travel arrangements you paid for with your card. However, you must charge these items to your card before your departure date and your trip must be cancelled for a covered reason. The coverage extends to $1,500 per person, per trip (up to $3,000).
Perks include unlimited Air Canada Maple Leaf Lounges™ and Air Canada Café™ access, priority check-in, boarding and baggage handling.
Disclosures:
Contact American Express for the most up-to-date referral bonus figures.
American Express is not responsible for maintaining or monitoring the accuracy of information on this website. For full details and current product information, click the Apply Now link. If you apply and get approved for an American Express Card, (I/we) may receive compensation from American Express, which can be in the form of monetary payment.
What you need to file a trip cancellation insurance claim
Once again, each credit card has different requirements when it comes to making a claim (that’s why you really should read your credit card’s certificate of insurance carefully). Overall, most require some or all of the following:
- Official flight, hotel or travel agent receipt/invoices
- Doctor’s note or death certificate if you are cancelling for a medical reason
- Providers may request that you show some manner of proof that the costs would not be reimbursed by your flight or hotel company
Additionally, most insurance providers request that cardholders notify them immediately upon cancelling a trip. Many providers also have deadlines for submitting a completed claim, such as within 90 days of the cancellation.
Final word: Is trip cancellation insurance worth buying?
While travelling for pleasure is off-limits for Canadians right now, things will eventually return to normal. The coronavirus crisis highlights the value of having trip cancellation insurance and it’s a good time to research the best credit cards in Canada with travel insurance (and maybe other perks like lounge access too) that work best for you.
Another good resource to consult when considering travel insurance—or any insurance for that matter— is InsuranceHotline.com. You can get online quotes from trusted Canadian insurance providers all at once through an easy-to-use search platform and a single search can save you some serious bucks.
If you’re still unsure about how the coronavirus will affect your trip cancellation insurance, the best thing you can do is take the time to familiarize yourself with your policy and contact your provider for specific answers.
Sandra MacGregor has been writing about finance and travel for nearly a decade. Her work has appeared in a variety of publications like the New York Times, the UK Telegraph, the Washington Post, Forbes.com and the Toronto Star.
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