Travel Insurance

Travel insurance is an essential safeguard for Canadians travelling outside their home province or country. While many travellers assume their provincial health plan will cover them in case of a medical emergency abroad, the reality is that provincial coverage outside of Canada is extremely limited, and in many cases, provides no coverage at all.

Medical treatment outside of Canada can be extraordinarily expensive. A hospital stay in the United States can easily cost thousands of dollars per day, and a serious medical emergency could result in bills exceeding $100,000. Without travel insurance, you would be personally responsible for these costs.

Beyond medical coverage, travel insurance can also protect your financial investment in your trip. Trip cancellation and interruption insurance can reimburse you for non-refundable expenses if you need to cancel or cut short your trip due to covered reasons, such as illness, injury, or a family emergency.

Travel insurance is relatively inexpensive compared to the potential financial consequences of travelling without it. A comprehensive travel insurance policy for a one-week trip might cost $50-$150, while the cost of a medical emergency abroad could be devastating without coverage.

A comprehensive travel insurance plan typically includes the following coverages:

Emergency Medical Insurance: This is the most critical component of travel insurance. It covers emergency medical treatment, hospitalization, surgery, prescription medications, and medical evacuation or repatriation. Coverage amounts typically range from $1 million to $5 million or more.

Trip Cancellation Insurance: Reimburses you for non-refundable, prepaid travel expenses if you need to cancel your trip before departure due to covered reasons, such as illness, injury, death of a family member, or certain unforeseen events.

Trip Interruption Insurance: Covers additional expenses and the unused portion of your trip if you need to return home early due to a covered event.

Baggage and Personal Effects Insurance: Covers loss, theft, or damage to your luggage and personal belongings during your trip. It may also cover the cost of essential items if your baggage is delayed.

Flight and Travel Delay Insurance: Provides reimbursement for meals, accommodation, and other expenses if your flight or other transportation is delayed for a specified period.

Accidental Death and Dismemberment (AD&D): Pays a benefit if you die or suffer a serious injury as a result of an accident during your trip.

Most insurers offer the option to purchase individual coverages or a comprehensive package that combines all of the above at a discounted rate.

To get the most value from your travel insurance, keep these tips in mind:

Buy Early: Purchase your travel insurance as soon as you book your trip. This ensures you have trip cancellation coverage from the moment of booking and may provide additional benefits, such as pre-existing condition coverage.

Disclose Pre-Existing Conditions: Be honest and thorough when disclosing your medical history. Failure to disclose pre-existing conditions can result in denied claims. Many policies offer coverage for stable pre-existing conditions if purchased within a specified window of booking.

Understand the Exclusions: Read your policy carefully to understand what is not covered. Common exclusions include pre-existing conditions (if not stable), high-risk activities, travel against government advisories, and alcohol or drug-related incidents.

Check Your Credit Card Coverage: Some credit cards offer travel insurance benefits. However, this coverage is often limited and may not be sufficient for comprehensive protection. Use it as a supplement, not a replacement, for a standalone travel insurance policy.

Consider Annual Plans: If you travel frequently, an annual multi-trip travel insurance plan can be more cost-effective than purchasing individual trip policies throughout the year.

Keep Documentation: In the event of a claim, you will need to provide documentation such as medical reports, receipts, police reports (for theft), and proof of travel arrangements. Keep copies of all important documents.