Hundreds of 1000’s of Canadians fly to and from the United States every month. Those who purchased trip cancellation insurance before the federal government shutdown was announced as a travel advisory must be eligible for compensation, said Marty Firestone, president of Toronto-based insurance company Travel Secure Inc. “After this date, purchasing a policy will no longer cover anything related to the government shutdown or related air traffic control issues,” he said.
This means travelers who’ve recently purchased a policy or skipped out on it altogether could also be out of luck with meal, hotel and transportation coverage – although the airline would still owe them a rebooking or a refund for the canceled trip.
Selected travel bank cards
presented
Scotiabank Gold American Express Card
Earn as much as 6 Scene+ points per dollar spent and save on foreign transaction fees.
GO TO WEBSITE
Interest rates:
20.99% Purchase, 22.99% Cash Advance, 22.99% Balance Transfer
Welcome offer:
Value of $500
Earn as much as $1,050 in welcome offers, rewards and savings for the primary yr, including no annual fee for the primary yr, and as much as 50,000 bonus Scene+ points.
presented
American Express Cobalt Card
Earn as much as 5 MR Points per dollar spent and transfer them to partner loyalty programs.
GO TO WEBSITE
Interest rates:
21.99% Purchase, 21.99% Cash Advance, N/A Balance Transfer
Welcome offer:
Value of $150
Earn 1,250 points for each month you spend $750, as much as a maximum of 15,000 points.
presented
MBNA Rewards World Elite Mastercard
Earn 5 MBNA Rewards points per $1 in five categories, plus a ten% annual bonus in points.
GO TO WEBSITE
Interest rates:
21.99% Purchase, 22.99% Cash Advance, 22.99% Balance Transfer
Welcome offer:
Value of $200
Earn 20,000 bonus points (roughly $165 money back value) after you make $2,000 or more in eligible purchases inside the first 90 days.
“The key to this particular situation is that insurance was purchased prior to the advisory taking effect, as this is now a ‘known event,'” said Matt Hands, vp of insurance at Ratehub. In the world of insurance, a known event is a foreseeable event and is due to this fact excluded from insurance coverage.
Some bank cards offer travel insurance, which incorporates coverage within the event of flight cancellation or interruption. But consumers should still check their terms and conditions to substantiate what is roofed, Hands said. For example, the insurance can only be valid if the trip was booked with this card.
Lack of air traffic controllers within the US results in cancellations in Canada
The shortage of air traffic controllers within the US because of the federal shutdown prompted US regulators to order a discount in air traffic starting last Friday. Since then, wintry weather has exacerbated staff shortages in parts of the continent.
Several Canadian airlines told The Canadian Press last week that passengers may very well be affected, particularly those with connecting flights to the United States. Even direct cross-border routes between major hubs are affected. Air Canada told passengers booked on a flight from New York City to Toronto on Monday that the evening flight was “cancelled due to air traffic control restrictions.”
“Air traffic control limitations can occur when too many aircraft share the same airspace,” said the e-mail to customers, obtained by The Canadian Press.
The FAA warns that flight delays could proceed
According to Cirium, the typical cancellation rate in recent days has already exceeded the Federal Aviation Administration’s requirement of 4% – a figure that ought to rise to six% on Tuesday and 10% this Friday.
The article continues below promoting
X
The FAA warned Monday that staffing shortages at greater than a dozen towers and control centers could delay the departure of planes to Phoenix, San Diego, the New York region and Houston and other cities. The agency also expanded its flight restrictions on Monday, banning business jets and plenty of private flights from using a dozen airports that have already got business flight restrictions.
The US Senate passed a bill to reopen the federal government on Monday, however the bill still must be approved by the lower house of Parliament and final passage may very well be just days away – further flight disruptions are possible for the remainder of the month.
“It will be well over a week to 10 days, if not two weeks, which will roll into the Thanksgiving period when it is their busiest travel day,” Firestone said. “This is impacting so many people, including Canadians who are traveling for business and can’t take the risk of being stuck in New York for two or three days because of this shutdown. It’s a domino effect.”
U.S. Transportation Secretary Sean Duffy made clear last week that flight cuts will proceed until the FAA determines that staffing levels at its air traffic control facilities stabilize.
Get free MoneyDown financial suggestions, news and advice in your inbox.
Read more about travel insurance:
