7 ways trip cancellation & interruption benefits saves you money

Oscar Wilde once said that ‘To expect the unexpected shows a thoroughly modern intellect’. We can’t be sure if he was referring to purchasing a travel insurance plan but there is certainly a parallel to be made. Travel cancellation and interruption insurance helps protect you from unexpected cancellations or interruptions while you are travelling.

You've been saving up for years and now your trip is just around the corner. Since you've booked through a Canadian tour operator, you don't have to worry about anything. The trip of a lifetime to Bora Bora—a personal cabana over a crystal blue ocean and cocktails with paper umbrellas and exotic fruit. Your holiday plans are perfect. Then imagine the Canadian travel supplier goes bankrupt one week before your departure. And guess what? That tour company won’t be returning your investment.

However, being the savvy traveller you are, you bought trip cancellation insurance that will reimburse your prepaid expenses, up to $3,500 CDN, to enable you to re-book your holiday. Or what if your dream vacation is a ski trip, and just days before departure your travel companion sustains an unexpected injury. Once again, trip cancellation insurance could be financially beneficial, providing some compensation for the cancelled trip.

Trip cancellation coverage typically includes a variety of specific covered reasons that can cause you to cancel your trip. Before purchaing a travel insurance policy, be sure to check what reasons for cancellation are  eligible. This way you can be sure the policy will fit your needs.

What if something happens while you are already on your trip? Unfortunately, there are lots of things that can go wrong unexpectedly, forcing you to interrupt your plans. A relative may have fallen ill or suffered an injury back home that would force you to end your trip. Perhaps you have to cut your trekking adventure short due to a badly sprained ankle that renders you immobile. Or you may need to evacuate the area you are staying at due to a natural disaster. 

Trip Interruption benefits may help cover the cost of changing your flights or purchasing a one-way return ticket earlier than planned, as well as any pre-paid trip arrangements that you’re no longer able to use.

Athleisure travel is one of the most enjoyable ways to visit other parts of the world while enjoying your favourite hobbies. Travel built around tennis, golf, skiing, cycling and other activities are often the most enjoyable, and memorable trips. But, if your sports equipment gets lost, delayed or damaged in transit the trip becomes a lot less pleasurable. Trip cancellation and interruption insurance may cover replacement or repair of crucial items like baggage or equipment, up to policy limits. This can help you avoid significant delays if something goes wrong on your trip.

A major inconvenience when taking a commercial flight is when you arrive at your destination, but your baggage doesn’t due to mishandling by the airline. With the right coverage in place, you may be able to purchase necessary items such as toiletries and clothing to get you through until your luggage arrives. Usually, travel insurance with baggage protection benefits will reimburse loss, theft or delay of your luggage—a must for savvy travellers.

Travel is unpredictable and airlines are under no obligation to support travellers because of unanticipated delays. If your trip is interrupted or delayed, travel insurance may cover the cost of meals, accomodations, and essential telephone calls. So, unless you want to pay out of pocket for an airport hotel, travel insurance should be considered!

Your pup is spending their vacation at a kennel that specializes in pampering their furry guests, and that is a budgeted expense. However, if your return home is delayed because of a reason covered by travel insurance, Fido’s extended stay at the puppy palace could also be reimbursed.

You will probably be surprised at how much coverage is available through travel insurance plans with trip cancellation and interruption benefits. So take a few minutes to read your policy carefully. And once you understand the benefits of travel protection, it’s hard to imagine travelling without it. Peace of mind is priceless.

Get a travel insurance quote today and find out how Allianz Global Assistance can help protect your next trip.


Travel insurance is underwritten by CUMIS General Insurance Company, a member of The Co-operators Group of Companies, administered by Allianz Global Assistance, which is a registered business name of AZGA Service Canada Inc

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