How to get travel insurance

Are you planning a trip? If you are, you probably need travel insurance coverage. When you’re somewhere unfamiliar, you never know what could happen. That’s why having some form of financial protection is important — travel insurance can help. Whether you need medical treatment because of an unexpected emergency or an airport loses your bags, you’ll be stuck paying a decent amount out of pocket if you don’t have insurance coverage.

However, when it comes to travel insurance, you probably don’t know where to start. Luckily, your insurance provider can give you some advice, and so can an insurance broker. At BrokerLink, we have all the knowledge you need to purchase travel insurance. It’s time to learn about how to get travel insurance coverage.

What is travel insurance?

Travel insurance prevents financial losses that can occur while travelling. It’s not limited to domestic or international travel. You can purchase travel insurance whether you are hours or days away from home. Multiple types of travel insurance coverage are available, and they can cover various scenarios. We’ll explore each type more in depth below:

Comprehensive travel insurance

If you want to be ready for any situation, comprehensive travel insurance is the way to go. It allows you to bundle multiple types of coverage into one plan. It combines a 24-hour assistance line that allows you to find local doctors or receive aid in an emergency. It provides reimbursement if your trip gets cancelled, trip interruption or delay, baggage loss or loss of items, and the costs of medical treatment and medical evacuation.

In addition, you have the option to purchase coverage separately. This makes more sense if your insurance provider already provides coverage for certain losses. For more information on how to stay safe, review our travel guide.

Trip cancellation or interruption insurance

When you travel, there are certain costs you have to pay for before you travel. In some cases, certain expenses are non-refundable. You should be aware of these before planning your trip to avoid any unexplained expenses. These include the following:

Trip cancellation

You will be reimbursed for paid travel expenses if you are unable to go on your trip because of a reason listed in your policy.

Travel delay

This allows you to receive compensation if your trip is delayed for various reasons.

Trip interruption

If you have to shorten your trip, you will be compensated for the additional costs of going home early.

Cancel for any reason (FAR)

This coverage reimburses you some of the costs of your trip if you have to cancel it for any reason. Because of its extensive nature, this type of coverage costs more than its counterparts.

In order to receive compensation through trip cancellation and interruption insurance coverage, you need to fulfill certain conditions. When you make a claim with your insurance provider, it has to be for a reason outlined in your policy, which commonly includes:

• Personal illness
• An immediate family member falls ill or passes away
• Unexpected business problems
• Inclement weather prevents travel
• Legal requirements (e.g. jury duty)
• Bankruptcy

When it comes to making a trip cancellation or interruption insurance claim, you have to meet the requirements listed in your contract as of your policy’s effective date. In some cases, you might have to pay more to receive insurance coverage. For example, financial struggles, terrorism in your destination city or work priorities might not always be covered.

Damage and lost luggage insurance

When you fly, it’s not uncommon for baggage and personal belongings to get lost, stolen or damaged. This is a common customer complaint that can ruin any trip. Damage and lost luggage insurance can help protect you if your baggage or personal belongings are lost, stolen or damaged when you travel to, in, and from a destination.

It’s important to note that travel insurance policies have restrictions when there’s an issue with delayed baggage. These conditions tend to set limits on how much the insurance company will cover. You might have to list specific items you want covered, and you will only receive a set amount of money for each one. Ask your insurance provider about coverage limits when purchasing travel insurance.

There are exceptions to this rule, though. Your insurance company may not pay for lost and damaged luggage because the airline would be considered at fault. Luckily, the majority of airlines compensate travellers if their baggage gets lost or destroyed as a result of their actions. Keep in mind that there are also restrictions on this, which is why having travel insurance also matters.

Rental insurance

Whether you’re visiting a new city or a new country, you’re likely renting a place to stay. Vacation rental insurance helps cover the costs of accidental damage to a rental property. Sometimes, insurance will also help pay the costs if you can’t use your vacation rental, making this endorsement another form of trip cancellation and interruption coverage. Common reasons for claims include:

• Getting keys lost or stolen
• Unclean or unsafe vacation property
• Vacation rental did not look like how it was advertised
• Company or property owner oversold your vacation rental

There’s also the option of purchasing rental car insurance. Rental cars can get damaged or lost when you’re driving in a foreign country. This endorsement will replace the rental company’s collision damage waiver (CDW) or your regular car insurance policy. Check your policy to see what it covers because it can range from collisions to theft, vandalism and other incidents. Sometimes, rental car insurance can be added to your personal car insurance policy in a similar way to third-party liability car insurance, but it won’t cover liability or legal responsibility if you injure someone or damage their property.

Travel health insurance

Having a way to pay for emergency medical expenses while travelling can be helpful because not everywhere has universal healthcare like Canada does. Seeking medical care is already stressful enough, especially when trying to have safe travels abroad, where you might not know the laws or speak the language. Coverage will vary but generally includes the following:

Foreign travel medical coverage

Having this type of policy will cover medical treatment required while travelling for anywhere from five days to a year or longer.

Medical evacuation

Oftentimes, medical evacuation is required when a person has to be airlifted to a medical facility to receive care.

Pre-existing medical conditions

You can receive emergency medical coverage if you have certain pre-existing medical conditions. Consult your insurance company to learn about limitations. In Canada, health insurance isn’t a thing because of universal healthcare. However, receiving emergency medical care in a foreign country costs money and can add up without travel medical insurance. That’s why it’s important to have emergency medical coverage in case something happens. You should also look into coverage for common illnesses. Consider checking our guide to Covid 19 and travel insurance.

Accidental death and dismembership (AD&D) insurance

Accidents happen — even if you seek emergency medical care right away, you might suffer an injury or, in some cases, pass away. Having this policy will compensate you with a lump sum of money if you are injured and the beneficiaries you list on your policy in the event of death. This type of travel insurance usually covers the following:

Flight accident insurance

The insurance company will provide coverage if an accident occurs on a flight from a licensed commercial airline.

Common carrier

If something happens on public transportation such as train, ferry or bus, you will receive coverage.

General travel

It allows you to receive coverage if something happens at any time during your trip. Keep in mind that like other parts of your travel insurance policy, this type of coverage is subject to restrictions. In other words, only certain injuries may be covered such as hand, foot, limb or eyesight.

However, if you already have life insurance, you might not need this type of coverage. It doesn’t mean you have to opt out of it, though, because if death occurs, more money will be paid out to your beneficiaries.

How do you purchase travel insurance coverage?

The first step in getting travel insurance is making the purchase. How do you do this? Let’s find out.

Having travel insurance cover the costs of an unexpected emergency can be helpful. Although coverage tends to vary, this is a good thing since you can choose to use it for a single trip, multiple trips, or annual trips. When you fill out your insurance policy, your insurance company will want to know as many details as possible about your trip, including:

• Who’s coming
• How much it costs
• Where you’re going
• When you’re going
• Date you will make the first payment toward your trip

Once you provide this information, your insurance company will review it to create some guidelines and determine a rate. Assuming your application gets accepted, your insurance company will provide you with a policy.

After receiving your policy, you will be given time to review it (usually 10 to 15 days). If you would like to decline the policy or ask about adjustments, this is the time to do so. Be cautious when reviewing your policy and ensure it covers the following:

• Emergency medical care and transportation back to Canada
• Limits that will cover the costs of potential damages
• The area you are travelling to
• How long you’ll be travelling and the number of trips you’re going on
• Each of the excursions you plan to go on
• Pre-existing medical conditions and those common among people your age

The basics, such as emergency medical assistance and property, should be covered. Read the fine print and look for any exclusions to ensure the costs of travel insurance are worth it. If anything looks like it’s missing, let your insurance company know.

How much does travel insurance cost?

There isn’t a single price for a travel insurance policy. Despite this, there are some common factors that affect the price of travel insurance. Here’s what you need to know:

Your age and health

In some cases, an insurance company may ask you to fill out a medical questionnaire. If you have pre-existing medical conditions, there’s a higher likelihood of emergency treatment. In turn, this can increase the costs of medical expenses if something were to happen. You are also more vulnerable as you age, which also affects your insurance costs.

How long your trip is

If you plan to go on a long trip, there’s more risk involved. This is because there’s a higher likelihood of something going wrong, especially if you are travelling abroad and taking multiple flights. Even if you have a round-trip flight, your belongings and luggage could still get damaged or stolen. Be aware that longer trips can be fun but often come with a higher price tag for travel insurance.

Your destination

Going on a quick road trip across the border using travel trailer insurance is quite different from flying across the ocean to gaze at the Eiffel Tower. Travelling further away can put you at a higher risk for financial losses and medical expenses. Yes, you can have travel insurance cover the costs, but there are exclusions, which can lead to you paying a little bit out of pocket.

Contact BrokerLink today

Travel insurance offers trip cancellation coverage and many other types of coverage. Each can be helpful in different ways. Despite this, it can sometimes be difficult to find the right coverage. If only there were a way to learn more about travel insurance coverage without constantly shopping around. Luckily, there is! We advise travelling safely with TuGo or checking the options available from Travelwell.

Whether you’re looking for travel medical insurance, rental insurance or both, reaching out to an insurance broker can help. At BrokerLink, we are connected with the best travel insurance companies and can help you find a policy that suits your budget and needs. What are you waiting for? Call, use our online quote tool or visit one of our community branches today.

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