Cancellation vs interruption
- Trip cancellation applies only when you cancel before the trip starts. It refunds prepaid, non-refundable costs such as flights, hotels and tours.
- Trip interruption applies after you leave. It reimburses the unused part of your trip if you have to come home early because of something unforeseen.
Many policies bundle the two. Check the limit: it should be at least what you'd lose if you cancelled.
Typical covered reasons
Policies only pay for the reasons they list, so read the list before you buy. Common ones include:
- The unexpected death, sickness or injury of you, a travelling companion or a family member.
- Losing your permanent job involuntarily, without just cause.
- Your home becoming uninhabitable because of a disaster.
Changing your mind, or a trip you no longer want, isn't a covered reason.
When the airline owes you, not the insurer
If the airline cancels or badly delays your flight, even for reasons outside its control, Canada's Air Passenger Protection Regulations let you choose a refund or rebooking. Refunds must be paid within 30 days, to your original payment method. Claim from the airline first; insurance usually covers what's left over.
If the delay was within the airline's control, you may also be owed compensation, which you can claim yourself or through a claims service.
Travel advisories
Many policies won't cover you in a region where the Government of Canada advises against all travel or all non-essential travel. Check the advisory for your destination before you book and before you buy insurance.
Where to get it
Cancellation cover is sold on its own, bundled with medical insurance, and by some credit cards (with a limit). A cancellation policy bought with a holiday package may not include medical cover, so check you have both.
VisitorsCoverage is a US-based marketplace. When you get a quote, enter your Canadian address and check the plan accepts Canadian residents and covers your whole trip and any medical conditions. For long trips, older travellers or pre-existing conditions, also compare a Canadian insurer. Some links earn us a commission at no extra cost to you.
Flight delayed, cancelled or overbooked?
That's not an insurance claim. Under Canada's Air Passenger Protection Regulations and the EU's rules, the airline may owe you compensation. These services file the claim for you and take a share only if they win.
We earn a commission if you use these services, at no extra cost to you. You can also claim from the airline yourself for free; the Canadian Transportation Agency explains how.
Common questions
What's the difference between trip cancellation and trip interruption?
Cancellation applies before you leave and refunds non-refundable costs. Interruption applies once you've left and reimburses the unused part of the trip if you must come home early for a covered reason.
Does travel insurance cover a cancelled flight?
Claim from the airline first. Under Canada's rules, if the airline cancels, you can choose a refund or rebooking, and refunds must be paid within 30 days.
Can I cancel for any reason?
Standard policies only pay for the covered reasons they list, such as illness, a death in the family or losing your job. Changing your mind isn't one.
Sources
Checked October 15, 2026. Rules and amounts change, so confirm with your province, insurer or IRCC.
- Travel.gc.ca: Travel insurance
- Canadian Transportation Agency: FAQs on refund amendments to the Air Passenger Protection Regulations
- TravelInsurance.ca: What is a covered reason for trip cancellation?
- CLHIA: A guide to travel health insurance (PDF copy)
- Milesopedia: Travel insurance on credit cards, conditions and limits (updated October 5, 2026)
- ITIJ: Fine print limits highlighted
More on travel insurance
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