Published on
August 14, 2025
As Air Canada’s strike draws near, travelers face the uncertainty of flight cancellations and delays. Understanding credit card travel insurance becomes crucial in this situation, as it can offer essential protection. If your trip is disrupted, the right insurance policy may cover costs such as cancellations and rebookings, potentially saving you from hefty expenses. However, it’s vital to ensure your card’s coverage aligns with the specifics of the situation, especially if the strike was foreseeable when the ticket was booked. Knowing your rights and the terms of your insurance can make a significant difference in navigating these potential challenges.
After meticulously organizing your summer getaway, the last thing you want is to deal with last-minute transportation changes. Yet, some travelers could be left scrambling as the threat of an Air Canada strike approaches.
After months of meticulous planning, the thought of a last-minute transportation change should be the least of anyone’s concerns when preparing for a summer vacation. For certain travelers, this situation could quickly turn into a stressful reality as the countdown begins to a potential strike at Air Canada.
The airline recently announced that it would begin gradually suspending flights starting Thursday. This follows the issuance of 72-hour strike and lockout notices by both the union representing Air Canada’s 10,000 flight attendants and the airline itself. These notices are set to come into effect at 1 a.m. ET on Saturday, marking the potential start of significant disruptions for travellers.
For passengers caught in the middle of this situation, dealing with sudden cancellations and delays can be incredibly frustrating. However, there may be some relief for those who booked their tickets with a credit card that includes travel insurance — provided that they meet certain conditions.
In general, credit card travel insurance covers trip cancellations under specific circumstances, as long as the ticket was purchased before the possibility of a labour dispute became evident. If the ticket was booked after the airline announced the threat of a strike, the insurance policy likely won’t cover costs arising from the disruption, which can leave travellers scrambling for alternative arrangements.
That’s why it’s crucial to carefully review the details of the credit card’s travel insurance policy before relying on it for coverage. The terms can vary widely between card providers, and understanding the exclusions and coverage limits is key.
For instance, travellers need to confirm whether the policy explicitly covers cancellations or delays due to labour disputes. In many cases, credit card policies include exclusions for cancellations caused by government actions, pandemics, or labour disruptions. Without these crucial details, travellers might assume they are covered when, in fact, they are not.
Interestingly, coverage for disruptions caused by labour disputes may vary depending on the type of credit card a traveller holds. Premium or high-end credit cards often offer more comprehensive coverage, sometimes including strike-related cancellations even if the ticket was purchased after the strike became foreseeable. But, again, it’s important to be aware of the fine print of each card’s specific policy.
Another aspect to consider is the coverage limits and the payout rules attached to the insurance policy. For instance, some credit cards may provide up to $5,000 in cancellation reimbursement, but this limit can be lower for other cards. Travellers need to determine whether the coverage amount will be enough to compensate for their trip’s total costs. The key question here is whether the insurance payout is sufficient for the cost of the entire trip or if it falls short.
Meeting the terms and conditions of the credit card’s policy is equally important. For example, some policies require that a substantial portion of the trip be paid for using the credit card in question to qualify for reimbursement. Therefore, it’s essential to verify that the payment conditions align with the requirements for a claim.
In the case of a trip interruption while a traveller is already en route, airlines typically provide essential services such as hotel stays and meals. During labour disruptions, airlines are generally required to reimburse passengers for reasonable costs related to accommodation, meals, and rebooking. However, additional expenses, such as non-refundable hotel bookings made in advance, may not be reimbursed unless specifically covered by either the airline’s policy or the traveller’s own insurance.
Air Canada, for its part, has pledged that affected passengers will be eligible for a full refund should their flight be cancelled. The airline has also worked out arrangements with other carriers to provide alternative options for passengers, but travellers should be prepared for potential delays in securing alternate flights, as many other airlines are already at capacity during the busy summer travel season.
In situations like these, experts advise that the key to securing the right insurance coverage lies in doing thorough research ahead of time. Understanding the scope of your credit card’s insurance policy can save you from significant inconveniences down the road.
Ultimately, consumers are encouraged to contact their credit card issuer directly to confirm whether their card’s travel insurance covers strikes. Doing so can provide peace of mind, especially if a potential work stoppage threatens to disrupt travel plans. It’s essential to ensure that travellers are fully aware of what is, and is not, covered under their policy — before they find themselves needing to make a claim in the middle of an unexpected travel disruption.
