Travel Insurance for Canadians

Are you the kind of traveler who enjoys visiting new countries and experiencing different cultures? Or are you an avid domestic traveler who loves to explore the wide range of unforgettable experiences Canada has to offer?

Either way, travel insurance is something you should strongly consider. Your government health insurance plan may offer limited or no coverage at all when you travel outside your home province or territory.

Travel insurance provides financial protection against travel risks and gives you peace of mind, knowing you’ll be covered if things go wrong. Here’s what you need to know.

What is travel insurance for Canadians?

Travel insurance provides financial protection against a wide range of risks associated with traveling, including medical emergency and evacuation, baggage loss, baggage delay, trip delay and trip cancellation. While no single plan covers every possible thing that can go wrong, usually you can tailor the coverage to meet your unique needs.

Different types of travel insurance for Canadians

There are several different types of travel insurance. The most common ones are:

Individual travel insurance

This type of travel insurance plan covers one person and usually provides complete medical and health cover while you are traveling to a domestic or international destination.

Family travel insurance

It is one single plan that covers your entire family, while they are traveling together. A typical plan includes emergency medical coverage, trip cancellation, and luggage loss.

Single-trip travel insurance

It offers financial protection against exigencies for only one trip — domestic or international. The coverage starts when you purchase the plan and ends when you return home.

Multi-trip travel insurance

It covers you for multiple trips taken within one year and provides financial protection from losses in traveling.

Business travel insurance

This type of travel insurance plan covers a range of risks an employee may face during the course of a business trip. Example of risks covered include emergency medical expenses, trip cancellation, luggage loss, and other personal loss.

High-risk travel insurance

This type of travel insurance cover is specifically designed to include high-risk destinations, including war zones and regions recently affected by political unrest or terrorist attacks.

What Does Travel Insurance Cover?

A standard travel insurance plan should provide coverage for medical treatment, luggage loss, and trip cancellation while traveling. However, each travel insurance plan is different, and no one plan is likely to cover every exigency. Read your policy document carefully to see what is included — and what isn’t.

Medical expenses and evacuation

This benefit covers you against medical contingencies and emergency medical evacuation situations while traveling. Most plans will cover:

• Emergency medical expenses, including ambulance fees and hospital charges
• Cost associated with medical evacuation
• Emergency repatriation
• Emergency transport

Accidental death and dismemberment

It covers accidental death or the accidental loss of limb while you’re away from home. Note that this benefit doesn’t cover death from illness or natural causes or suicide, so it’s different than a life insurance plan.

Trip cancellation

In case your trip is canceled for a covered reason, your policy will reimburse you for prepaid, non- refundable expenses, such as airline tickets and hotel rooms. Covered situations usually include:

• Illness or injury
• The death of a traveling companion or family member
• Natural disaster
• Job loss
• Airline strike
• Military deployment

Find the best rates

Compare quotes from Canada's top life insurance companies in no time.

Compare Rates

Trip delay

In the event of a travel delay due to a covered reason, your plan will provide reimbursement for necessary expenses incurred by you. Covered expenses include transportation, lodging, and meal, among others. This coverage typically kicks in after a specified length of time — usually between three to 12 hours.

Trip interruption

This coverage reimburses you for pre-paid, non-refundable expenses you forfeited when you have to interrupt or cut short your trip due to a covered reason.

Baggage loss

It covers checked-in baggage that is lost, stolen, or damaged during your trip.

Baggage delay

This coverage reimburses you for the checked-in luggage if it is delayed for the minimum amount of time mentioned in your policy document.

How much does travel insurance costs for Canadians?

The cost of travel insurance is usually 4% to 6% of the trip cost. For a $10,000 trip, the premium may range from $400 for basic coverage up to $600 for a plan with comprehensive coverage. That said, exactly how much you will pay for coverage depends on a number variables. These include:

The total cost of non-refundable, pre-paid expenses

If your travel insurance coverage includes trip cancellation/interruption benefits, your premium rate will be partially based on the total cost of non-refundable, pre-paid expenses, which includes airfare, excursions, special tours, and hotel, among others. The higher this amount is, the higher the cost of coverage will be.

Age of travelers

Typically, older applicants pay more for the same level of travel insurance coverage than their younger counterparts. It makes sense: Older people have a higher risk of falling sick or suffering an injury.

Number of travelers

Another factor that impacts the cost is the number of people covered. The more people a plan covers, the higher the odds that you will need to file a claim.

Trip duration

You may have to pay higher travel insurance premium for a longer trip than for a shorter trip. This is because the longer the trip length, the greater the chances of your filing a claim.

Add-on benefits selected by you

Add-on benefits enhance your base policy’s coverage, usually at an additional cost. Each add-on benefit that you add to your plan will increase the premium slightly.

Factors to Consider When Choosing Travel Insurance in Canada

When it to comes travel insurance for Canadians, there are many options available. It’s important you pick a plan that’s right for you. Here are a few things you should consider when choosing a travel insurance plan:

• Types of coverage and coverage limits: First determine what types of coverage and how much financial protection you need.
• Single trip or annual plan: If you are a frequent traveler, buying an annual travel insurance plan makes a lot of sense. On the other hand, if you travel fewer than three times a year, a single trip plan might be a better option.
• Individual or family plan: Buying a family plan is more cost-effective than purchasing individual plans for each family member.

Conclusion

Travel insurance offers coverage against a variety or risks related to travel. Whether you are traveling internationally or within Canada, consider buying a robust plan. The right policy can protect your wallet, personal belongings, and peace of mind.

Not sure what type of travel insurance cover you need? Or from where to start? Let Dundas Life help you. Speak to one of our advisors or drop us an email, and we will walk you through the entire travel insurance buying process while offering transparent, unbiased advice.

‍

Frequently Asked Questions (FAQs)

Do you need travel insurance when traveling to the US from Canada?

Canada has universal healthcare coverage, but your government health insurance plan may not cover the costs of medical care abroad or may cover only a small portion of it. Medical emergencies can occur anywhere and at any time. With medical care costs being so expensive in the US, you may find yourself staring at a huge bill if you get sick or hurt during your stay. This is why travel insurance is imperative as it helps cover emergency medical costs while traveling.

Do I need travel insurance when traveling in Canada?

All Canadian provinces, except Quebec, have reciprocal interprovincial health insurance agreements. In simple language, it means that if you need emergency medical treatment while you are in another province, your host province will cover medical costs incurred by you. However, there are certain limits and gaps to what your host province will cover, meaning your out-of-pocket medical expenses could easily run into several thousands of dollars. Therefore, it make sense to protect yourself by buying travel insurance even when traveling within Canada.

Do I need travel insurance when going to Europe?

While traveling in Europe, your provincial or territorial plan may provide limited coverage or may not provide medical coverage at all. This could leave you on the hook personally for out-of-pocket medical expenses totaling thousands of dollars. For this reason, purchasing travel insurance, which covers unanticipated medical costs while you are away from home, is a good idea when going to Europe.

How far in advance can I buy travel insurance?

You can buy emergency medical insurance up to 180 days before your departure date.

Can I buy travel insurance after booking my trip?

Yes, you can purchase travel insurance after you’ve booked a trip. However, it is always a good idea to buy coverage well in advance. If you procrastinate, your plan may not include certain benefits.

Does travel insurance cover personal belongings?

Whether or not your travel insurance cover personal belongings depends on the types of coverages it includes. If your plan includes baggage and personal item loss coverage, it will cover items throughout your entire trip, not just during a flight. Every travel insurance plan is different, so read your policy’s terms and conditions to understand what is covered.

Does travel insurance cover luggage theft?

If your travel insurance policy includes baggage loss and damage benefits, it will likely reimburse you for luggage theft. Carefully read the policy document to understand what is covered. Typically, high-value items, like jewelry, are covered only up to a certain limit. Stolen cash is usually not covered.

Does travel insurance cover flight changes?

If your travel insurance plan includes trip cancellation/interruption coverage, it can help recoup losses incurred due to flight changes.

Does travel insurance cover traveling to remote or high-risk destinations?

Standard travel insurance plans cover remote destinations but not high-risk destinations. If you are traveling to a high-risk destination or country where your country’s Foreign Office advises against travel, consider buying high-risk travel insurance. It is specifically designed to cover those traveling to dangerous locations, including war zones, disaster or crisis relief zones, and regions recently affected by terrorist activity or political unrest. Make sure you have the right type of coverage in place to give you peace of mind, knowing your plan has got you covered if anything goes wrong.

Does travel insurance cover pre-existing medical conditions?

Standard travel insurance plans do not cover pre-existing medical conditions. However, some insurers let you purchase this coverage as an add-on at an additional cost.

What are the implications of not having travel insurance as a Canadian traveler?

Without travel insurance, you will have to pay out of your own pocket for medical emergencies or other problems that you experience while traveling. Or you may lose all the money you paid if you have to cancel your holiday.