A vacation, including flights, hotels and rental cars can cost about $3,000 a person, but almost two-thirds of Canadians either don't buy or are unsure if they have trip cancellation insurance before leaving on holiday.
According to a survey by Kanetix, travellers who don't buy trip cancellation insurance, cite the following reasons:
- 36 per cent of Canadians believe the insurance is expensive
- 28 per cent said they have it on their credit card
- 18 per cent are not confident a claim would be paid
- 15 per cent have coverage through their workplace benefits
- 13 per cent have never heard of trip cancellation insurance
- 12 per cent believe their travel medical policy includes it
Coverage helps protect your investment
“For all that trip cancellation insurance covers, it's an inexpensive way to protect the money you've invested into going on vacation," says Janine White, VP of marketplaces and strategy at Kanetix.ca. "Whether it's due to a death in the family, being called to jury duty, or a sudden injury or illness that prevents you from travelling, trip cancellation insurance can help you recoup travel expenses that are non-refundable or prepaid should you need to cancel your plans."
Trip cancellation insurance can also provide coverage if you're laid off from your job, your home suffers a catastrophic loss like fire or flooding, severe weather, as well as new "avoid travel” advisories issued by the federal government.
“If you believe you have trip cancellation insurance through your credit card or workplace benefits, we encourage you to review your policy's limits to ensure the full value of the trip is covered,” adds White. “And, if you think your travel medical policy includes trip cancellation, we want you to be sure of it. Unless an all-inclusive policy has been purchased, which bundles emergency medical, trip cancellation and baggage loss coverage into one policy, there's a chance you don't have the coverage you think you do."