• Trip Cancellation and Trip Interruption Insurance – Credit Card

Trip Cancellation and Trip Interruption Insurance – Credit Card

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Trip Cancellation and Trip Interruption Insurance – Credit Card
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Credit Card Travel Insurance – Trip Cancellation and Trip Interruption 

What happens when you’re forced to either cancel your vacation or cut it short because of severe weather, sickness or any other reason? We are always faced with different emergency situations that cause us to cancel our trip. However, you can be assured of financial protection when your travel plans are either interrupted or canceled with a reward credit card that comes with insurance. Most of the reward credit cards available today come with insurance to offer protection in case of an emergency.

It’s important that you find out if your credit card offers trip cancellation and trip interruption insurance. As mentioned, you can be forced to delay your return home or cancel your travel plans due to sickness or any other unexpected event.   Imagine losing the amount of money you paid for your travel arrangements and planning for extra transportation and hotel costs. A trip cancellation and trip interruption insurance are, therefore, important when planning for a vacation.

Trip Cancellation and Trip Interruption Insurance: What you need to Know?

Well, the first thing you need to understand is that these are two different policies though related. They are both offered by select credit card companies to help with the investment you make with all your travel arrangements. You’ll agree to the fact that the costs of disrupting your trip to get back home prematurely can be more severe. Your airline will charge you cancellation penalties not to mention the significant loss you’ll have in making all those arrangements.

A trip cancellation and trip interruption insurance provide coverage for all your eligible non-refundable, prepaid expenses in case your trip is canceled outright or disrupted while still in progress. The difference between the two is that trip cancellation insurance take care of any cancellation charges or deposits before departure while trip interruption insurance covers for after departure costs.

Trip cancellation insurance only applies from the moment you book your trip to the time you’re scheduled to leave for the trip. It provides cover for all the trip cancellation penalties you may be charged. Trip interruption insurance, on the other hand, provides cover for the expenses you’d incur if you return from your trip later or earlier than you’d have stayed.

What does each of the two policies cover?

Flights Cancelled – Departures Arrivals Screen / Board / Monitor

Of course, you’re aware and well informed how insurance policies work. The trip cancellation and trip interruption insurance work the same way. The credit card companies or any other insurance provider won’t reimburse your travel expenses when you cancel your trip simply because you’re busy with your personal responsibilities. Similarly, you won’t qualify for reimbursement if you return home earlier than planned because the vacation seems boring. If you don’t have a valid reason, you have no business making any claim.

The Trip Cancellation Insurance Covers:

  • Accidental bodily injury
  • Severe weather that leads to the cancellation of a covered trip before it starts
  • Loss of life by the Cardholder/insured
  • Sickness experienced by the insured
  • A formal notice by the government authorities advising Canadian citizens not to travel to a destination the insured is supposed to go for his trip
  • Sickness experienced by an immediate family member or traveling companion of the insured person.
  • A car accident that forces the cardholder/insured to miss their flight
  • Jury duty that can’t be waived or postponed.

The Trip Interruption Insurance Covers

  • Hijacking or terrorist action forcing the cardholder to discontinue the trip.
  • A formal notice by the government authorities advising Canadian citizens not to travel to a destination the insured is supposed to go for his trip
  • Loss of life of the insured person while on the trip
  • Sickness experienced by the insured person, his traveling companion or immediate family member
  • A car accident that forces the cardholder/insured to miss their connecting flight
  • Severe weather or road closure affects the trip and causes the cardholder to miss a connecting flight
  • The death of an immediate family member to the cardholder forcing them to return home earlier than planned.

What’s not covered by the Travel Cancellation and Trip Interruption Insurance?

  • Loss due to a pre-existing medical condition
  • Any self-inflicted injury
  • A declared or undeclared war
  • Change in travel plans
  • Drug abuse cases
  • Body injuries arising from dangerous activities
  • Choosing to travel against the advice of a physician
  • Involvement in criminal activities by the cardholder/insured individual
  • Terrorism
  • Mental complications by the cardholder/insured person

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