Travelling during the coronavirus outbreak. Passport with face mask, sunglasses and hand sanitizer gel.

Does your credit card trip cancellation insurance cover coronavirus cancellations?

Sab Cam / Shutterstock


Updated: August 01, 2023

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To say it’s been a stressful year is the understatement of the century. From social distancing and quarantines to lay-offs and stock market crashes to kids homebound indefinitely, Canadians certainly have their plates full dealing with the economic crisis triggered by the coronavirus.

To add to that, travel lovers who still elected to go on vacation may be worried about a financial hit from a cancelled trip. However, for those who charged a trip to a credit card that includes trip cancellation insurance, their credit card could be a lifeline. Some of the best credit cards in Canada 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.

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.

Is Coronavirus covered by trip cancellation insurance?

In March 2020, when the coronavirus first started to really be taken seriously by many countries outside of China, it was not clear how credit card companies would react. No Canadian credit card company specifically mentioned pandemics—although policies are clear that insurance is intended to include only sudden and unforeseen events. At this point, the coronavirus would definitely be considered a known event.

Some policies have clearer guidelines on what happens when a country issues travel advisories. Generally speaking, a cardholder will be covered if Canada or the destination issues an official travel advisory that states all non-essential travel is to be avoided. But this is the critical part: you will usually be eligible to file a claim only if you booked travel before an advisory was issued. If you book after a travel advisory is announced, it’s unlikely your travel costs will be reimbursed. By now, Canadian credit card companies would consider the coronavirus pandemic a known event and by and large it looks like they will not cover trip cancellations. (Though again you should always contact your specific credit card company to be sure of their policies.)

Here are what some credit card companies are saying regarding how the coronavirus affects trip cancellation insurance.

  • RBC notes on their website “Any Trip Cancellation/Interruption claim related to COVID-19/Coronavirus will not be payable if the policy was purchased or trip was booked/paid on an RBC Credit Card, on or after March 13, 2020 5:30PM (EST).”
  • BMO states that “BMO Mastercard customers, who charged the full or partial cost of a trip outside of Canada to their BMO Mastercard account on or after March 13, 2020 at 5:00 pm ET, are not eligible to claim for trip cancellation benefits if the reason for cancellation is related to coronavirus.”
  • Scotiabank states that “Any trip booked on or after March 13th, 2020, will not be eligible for Trip Cancellation/Interruption insurance while the travel advisory is in effect.”
  • In an email correspondence, American Express Canada stated that “As of today [March 17, 2020], a Cardmember who booked a trip on an AMEX card that includes Trip Cancellation & Trip Interruption coverage may be covered if the trip was booked before any formal travel advisory against the destination country/region/city had been issued by the Government of Canada. Booking travel plans to a destination after it has received an advisory of ‘Avoid all travel’ or ‘Avoid non-essential travel’ can impact the travel insurance coverage.”
  • TD Bank states that “Given the Official Global Travel Advisory issued by the Government of Canada on March 13, 2020, Canadians have been instructed to avoid all non-essential travel outside of Canada until further notice. This means that you are not eligible for Trip Cancellation/Trip Interruption coverage due to COVID-19 if you:
  1. 1.

    book a trip to a destination, after the “avoid non-essential” or “avoid all” travel advisory issued by the Government of Canada is in effect for that destination

  2. 2.

    purchase TD Trip Cancellation and Trip Interruption Insurance for a destination, after the “avoid non-essential” or “avoid all” travel advisory issued by the Government of Canada is in effect for that destination.

  • CIBC has released a statement saying that: As a result of the most recent government travel advisory on March 13, 2020, advising against all non-essential travel outside of Canada, all trip cancellation, trip interruption and travel medical insurance coverages that are features of your CIBC credit card are no longer in force. Note that you may still be eligible for Trip Cancellation benefits depending on when you booked your trip.

Remember, the coronavirus crisis is constantly evolving, so be sure to contact your credit card provider to get the most accurate, updated facts. At worst, you can submit a claim and hope for the best.

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.

Scotiabank Passport® Visa Infinite* Card

Quick Facts

Earn up to $1,100* in value in the first 12 months, including up to 35,000 bonus Scene+ points and first year annual fee waived on your first supplementary card.¹ Earn 25,000 bonus Scene+ points by making at least $1,000 in everyday eligible purchases in your first 3 months. Plus, as a Scotiabank Passport Visa Infinite cardholder, you are eligible to earn an annual 10,000 Scene+ point bonus when you spend at least $40,000 in everyday net eligible purchases annually. Offer ends October 31, 2023.

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.

The details:

  • Annual fee: $150
  • Minimum income eligibility: You must have a minimum annual income of $60,000 or a minimum household income of $100,000 or a minimum assets under management of $250,000.
  • Credit score required: Excellent
  • Welcome offer: Earn up to $1,100* in value in the first 12 months, including up to 35,000 bonus Scene+ points and first year annual fee waived on your first supplementary card.¹ Offer ends October 31, 2023.
  • Earn rate: Earn 3X Scene+ points on every $1 you spend on all eligible purchases¹ at Sobeys, IGA, Safeway, Foodland, FreshCo, Voilà by Sobeys, Voilà by IGA, Voilà by Safeway, Chalo! FreshCo, Thrifty Foods, IGA West, Les Marchés TradItIon, Rachelle Béry and Co-Op. Earn 2 Scene+ points on every $1 you spend on other eligible grocery stores, dining, entertainment purchases, and daily transit purchases (including buses, subways, taxis and more), and earn 1 Scene point on every $1 you spend on all other eligible purchases.
  • Additional benefits: Visa Airport Companion Program membership + 6 free lounge visits per year, no foreign transaction fees, travel insurance
  • Purchase APR: 20.99% | Cash Advance APR: 22.99%
Learn more

¹ Conditions Apply. Visit here for the Scotiabank Passport® Visa Infinite* Card to learn more.

The American Express® Aeroplan®* Reserve Card

Quick Facts

New Offer: Cardmembers can now get an extra night free for every 3 consecutive hotel nights redeemed with Aeroplan points. Offer ends December 31, 2024

While this card does come with a hefty fee ($599 per year), when you combine the perks and the insurance coverage, you get one attractive package for frequent flyers.

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, and goes to a maximum of $3,000 for everyone who is insured.

Perks include Air Canada Maple Leaf Lounges™ and Air Canada Café™ access, priority check-in, boarding, and baggage handling; Enjoy your eligible first checked bag free for up to 9 people travelling on the same reservation on Air Canada flights; and you can also roll over any unallocated Aeroplan Elite™* Status Qualifying Miles and unused eUpgrade Credits to the following year to enjoy during your travels.

The details:

  • Annual fee: $599
  • Minimum income eligibility: N/A
  • Credit score required: Good;Excellent
  • Welcome offer: New American Express® Aeroplan®* Reserve Cardmembers can earn up to 85,000 Aeroplan points.
  • Earn rate: Highest Air Canada earn rate on an Aeroplan payment card in Canada: Earn 3X the points on eligible purchases made directly with Air Canada®* and Air Canada Vacations®*; Standard Earn Rate 2X the points on eligible Dining and Food Delivery purchases in Canada and earn 1.25X the points on everything else.
  • Additional benefits: Comprehensive insurance, access to select Air Canada lounges and Priority Airport services, access to exclusive American Express benefits, and employee card misuse protection. 
  • Interest on purchases: 20.99% | Interest on cash advances: 21.99%
Learn more

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 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.

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.

Sandra MacGregor Freelance Contributor

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, and the Toronto Star.


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