Credit Card Articles
Credit Cards And Free Trip Cancellation
Trip cancellation insurance sounds very appealing because it reimburses up to the full cost of the travel tickets after the trip is cancelled. Usually, an eligible cancellation is one that occurs due to jury duty, bad weather, government travel warnings, and medical emergencies. The question is whether or not this type of insurance is truly worth the cost of having the card.
It is unfortunate when trips are cancelled because of all of the planning that goes into them, not to mention the anticipation that is involved. Traveling is exciting and it comes with a great deal of positive anxiety. It is when the trip must be cancelled that life can become somewhat chaotic and, without some kind of insurance, the cancellation can become very expensive.
Many Canadians can agree that the cold and harsh winters give them plenty of incentive to consider having a credit card with trip cancellation protection. It is not uncommon for a trip to be cancelled because of the weather. In some cases, a cardholder may have a trip cancellation plan that allows them to cover both reward points and credit card payments that are applied toward the cancelled trip. This is extremely beneficial to Canadians that could potentially deal with weather-related cancellations or any type of cancellations. That way they lose out on very little or nothing at all.
As for whether or not it is worth it, it depends upon what the cardholder wants from the card and also depends on the card itself. The following are explanations of specific cards and their benefits, which are subject to change from time-to-time, and whether or not the protection is worth it when considering the fees and interest rates that come with them.
Built-In Trip Cancellation
There are many cards on the market that have trip cancellation insurance built-in. This means that it automatically comes with the card. The following are some of the most popular cards that individuals opt for when they want trip cancellation coverage already included with the card.
The first card is the RBC Rewards Visa with a trip cancellation maximum per trip. This includes the cardholder's spouse and minor children. Some cards are limited on what constitutes a good reason, but RBC states a long list of reasons, such as natural disasters and employee relocation. The card does come with an annual fee, but it is one that could make the trip cancellation insurance worth it.
The second card is the ScotiaGold Passport Visa Card which is a card that provides a considerable amount of trip cancellation insurance per person and also awards a maximum amount for all individuals that are traveling. There is an age limit for traveling adults and children and includes the trip tickets, the accommodation, and any package tour costs. This card also has an annual fee that is more than paid for if this insurance must be used. As for the interest, individual credit profiles determine interest rates. If not paying off balances every billing cycle, then it is important to determine if the long-term cost is worth actual reimbursement or the peace of mind that the protection brings.
The third is the TD First Class Travel Visa Infinite which offers coverage that is somewhat less than what cards normally provide and has an annual fee that is competitive. There is per person coverage with an overall limit and an age limit on traveling children. There is no maximum age for adults and there is a pre-existing condition limitation that is determined based on the age of the cardholder. However, the coverage is generous in that reimbursement is granted when a trip is cancelled because of unexpected injury or sickness of a family member. Other cards only have this allowance for the cardholder or traveling companions, but this one will reimburse for travel cancelled due to the illness or injury of a grandparent, parent brother, or sister.
Optional Trip Cancellation Coverage
There are cards that offer optional trip cancellation insurance charge separate annual fees for the coverage. For instance, the BMO Travel protection with Trip Cancellation insurance insures per person up to a total limit per trip that covers all travelers.
The pre-existing condition exclusion depends upon the age of the travelers. However, there are more cancellation scenarios offered with this protection than the average program. The reasons can range from sudden unemployment to airliner bankruptcy. Even pre-trip vaccinations are covered. BMO bundles this coverage with trip interruption, baggage insurance, and return trip assistance.
Another trip cancellation program is the TD Medical Insurance with Trip Cancellation option that has a per person coverage amount with a total amount for the entire party. There is a maximum number of days in which the coverage is in effect, so this may not be for travelers that plan on traveling longer than that. This coverage also comes with medical emergency coverage and trip interruption. The annual fee that is charged depends upon the age of the applicant and the amount of coverage selected.
The third program is the National Bank Travel Insurance Package which gives the cardholder trip cancellation, baggage coverage, and medical insurance. Trip cancellation covers a reasonable maximum amount per person without a group maximum. Applicants can choose whether to cover their trip for 15 days or 30 days. Because of the medical insurance included in this package, it provides more than the emergency medical that other plans provide. As for the annual rate, it depends upon the duration of the trip, age of the applicant, and whether the coverage is single or family coverage. Being able to choose from all of these parameters allows the applicant to have more coverage choices.
Trip cancellation coverage is going to vary greatly from card-to-card. That is why it is important to evaluate all of the cards, the fees, and the interest rates to ensure the coverage is worth it. Even if the trip cancellation coverage is an add-on, it is going to come with a cost for something that you will hopefully never have to use.
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