Are you planning a family vacation or traveling for work? Whatever the reason for your travel, make sure you have the right financial protection before you go. Travel insurance can protect you from a variety of unexpected events like an accident, sickness or missed flight.
When should I get trip insurance?
Travel insurance acts as a safety net. It protects you from a range of travel risks that can happen both at home and abroad. Buy your policy as soon as you’ve booked any part of your trip. By doing so, you’ll be able to take advantage of the cancellation elements of the policy should anything go wrong.
Note that some credit cards also come with travel insurance. For example, there are several business cards that offer certain coverage for the frequent traveler.
What are the different types of coverage?
Broadly speaking, there are two types of travel insurance: single trip and annual policies.
- Single trip coverage. This policy type covers you for one continuous journey, which can include multiple destinations. Coverage ends once you return home.
- Annual-multi trip coverage. Annual policies provide you with protection for multiple trips throughout a 12-month period.
Within the two coverage types there are various options you can select:
- International. If you’re heading abroad for your next vacation, compare international insurance policies. Be sure the policy covers the region you’re traveling to.
- Domestic. Domestic travel insurance provides you with coverage for traveling around Canada.
- Comprehensive. Comprehensive plans cover trip cancellation or delay, baggage delay and loss, trip interruption, as well as medical and medical evacuation. Insurers generally offer basic, mid-range and high-end plans.
- Cruise. Some comprehensive policies cover cruises as standard. Other insurers require you either get a cruise-specific insurance policy or add a cruise option to your existing policy.
- Luggage only. It’s good to add this if you’re worried about your luggage making it to your destination on time.
- Medical only. Medical only is great for people who are traveling light and only want to pay for the cost of emergency medical expenses.
- Cancellation only. Coverage when unexpected events force you to cancel your vacation. Be sure to check the listed reasons for cancellation outlined in your certificate travel insurance.
What’s generally covered?
- Trip cancellation. If you’re forced to cancel your trip, trip cancellation reimburses your lost, prepaid, non-refundable expenses. Most insurers have a list of approved reasons for cancellations.
- Trip interruption. If you find yourself in a situation where you need to cut your trip short and return home, if your reason is covered by your insurance you’ll be reimbursed for the unused, non-refundable part of your trip and the additional or increased transportation expenses.
- Travel delay. This provides reimbursement for additional accommodation and travel expenses because of a delay of 6 hours or more.
- Missed connection. If you miss a scheduled cruise or flight, missed connection coverage reimburses any resulting expenses.
- Baggage. Provides a benefit for lost, damaged or or stolen luggage and other personal effects.
- Baggage delay. Coverage reimburses when you buy essential items if your luggage is delayed for 24 hours or more.
- Medical. Coverage for necessary emergency medical expenses incurred during your trip.
- Dental. Depending on your policy, this will cover emergency dental work.
- Pre-existing conditions. Some insurers will offer medical coverage if you have a pre-existing condition, as long as you haven’t shown symptoms.
- Evacuation. If you’re in need of emergency medical transportation due to an illness or injury, you’re covered for transportation to the nearest hospital or appropriate facility.
- Accidental Death. Accidental death coverage provides a benefit for your named beneficiary if you suffer an injury or accidental death during a trip.
- 24 hour assistance. Make sure your policy offers 24 hour worldwide assistance. This way, no matter what the situation there’ll always be someone there to lend a helping hand.
What isn’t covered?
Every travel insurance policy has exclusions when the insurer won’t provide coverage, such as:
- Claims for intentional bodily harm, including suicide.
- Losses due to adverse weather conditions, if you cancel your trip.
- Losses incurred while you were participating in an unlawful act.
- Losses that are the result of your participation in an extreme sport.
- Claims for travel losses where the purpose of the trip was to receive medical treatment abroad.
- Claims for situations where you didn’t do everything within your power to reduce or mitigate your losses.
- Losses related to war, military actions, civil disorder and riots.
- Claims relating to mental, psychological or nervous disorders.
- Claims relating to existing medical conditions, though some offer waivers, so check with your provider.
- Losses sustained while you were under the influence of drugs or alcohol.
- Losses due to venereal disease, AIDS, pregnancy or abortion.
- Claims for nuclear radiation or radioactive contamination.
How much does it cost?
There are several factors that affect the cost of your travel insurance including:
- The level of coverage. This is a major factor in the cost of your policy. For example, if you’re traveling light, opt for a policy with a lower luggage coverage, or if you’re older and have health issues, you may need a policy with higher medical benefits.
- The age of the traveler. Age is the other major factor when it comes to the cost of travel insurance. The older you are, the more risk you pose to an insurer, resulting in increased premiums.
- Where you’re going. Your destination will impact the cost of your coverage depending on its perceived risk to the insurer.
- The length of travel. The longer you’re away, the more risk you pose to an insurer.
- Number of travelers. The number of travelers increases the cost of your premium. Some insurers offer discounts for insuring multiple travelers on one policy. Always check with your insurer before buying a policy.
Tips when buying travel insurance
- Get your coverage early. Take out coverage as soon as you’ve paid for any part of your trip. Certain coverage require that you’ve held the policy for a minimum amount of time, generally between 7 to 14 days.
- Don’t skimp on overseas medical. If you’re heading overseas make sure the policy offers a high level of medical coverage.
- Get coverage for your pre-existing conditions. If you have a pre-existing condition, check with your insurer about getting a waiver.
- Get coverage for only what you need. If you’re backpacking, choose a policy with minimum coverage for luggage. Don’t over-insure your trip.
- Check cruise coverage. While cruise coverage can be expensive, it’s worth it. Evacuation at sea can be expensive.
- Read your policy certificate. Every policy is different. Even if you’ve bought travel insurance before, chances are there will be slight variations in coverage. Make sure you read through the policy certificate.
What to know before getting a quote
Don’t buy coverage from your airline
While airline policies are cheap, they don’t provide much in the way of coverage. They can also be more expensive than going directly to the insurer.
Frequently asked questions
Travel insurance glossary
Actual cash value. This is the amount you paid for an item, less depreciation.
Baggage. This includes your luggage and it’s contents.
Dependent. Your spouse or unmarried children under the age required by your insurer.
Departure date. This is the date listed on your insurance certificate of when you’re scheduled to leave on your trip.
Effective date. This is the time and date your coverage starts.
Return date. This is the date listed on your insurance certificate when you’re scheduled to return to your final destination.
Severe weather conditions. This describes weather conditions such as hailstorms, blizzards or ice storms.
Premium. The financial cost of buying travel insurance.
Pre-existing condition. Any condition either you or your traveling companion were aware of or got treatment for before you bought coverage.
Unlawful acts. Any crimes committed by you or your traveling companion while you were away.
Read more on this topic
Travel insurance coverage for epidemics and pandemics Find out if your travel insurance will cover you for epidemics and pandemics like coronavirus.
Coronavirus travel alerts Find out what policies your travel insurance provider has put in place to protect you during the coronavirus outbreak.
Does travel insurance cover the coronavirus? Most travel policies offer limited coverage for coronavirus claims.
3 travel insurance tips to help ease coronavirus woes Unless you bought travel insurance before January, you probably won't be covered for the coronavirus. But there may be other ways you can protect your pocket.
The coronavirus proves why it’s important to read the fine print of your travel insurance policy Standard travel insurance policies won’t cover those who are worried about travelling due to COVID-19 — but there are some exceptions.
Accidental Death and Dismemberment (AD&D) Travel Insurance Finder Learn about accidental death and dismemberment travel insurance (AD&D), including what policies generally cover - and what they don't.
RBC travel insurance Protect yourself every time you go overseas with RBC’s affordable line of travel insurance products.
TD travel insurance Get reliable and affordable travel insurance to cover emergency medical and trip interruption expenses on your next trip overseas.
Blue Cross travel insurance Find out what types of travel insurance you can get with Blue Cross and apply for a quote today.
CAA travel insurance Find out how to apply for travel insurance with CAA to cover yourself on your next trip.
Ask an Expert
You must be logged in to post a comment.