What does travel insurance cover?

The world is your oyster as a traveller. But travelling without insurance introduces you to potential financial hazards and other vulnerabilities that can be hard to recover from. A survey conducted by ISPSO alarmingly revealed that 24% of Canadians who travel abroad believed their provincial or employee health insurance was enough to cover them fully if a medical emergency occurred.

The risks of traveling without insurance

Despite the abundance of risks, a substantial number of Canadian travellers remain uncovered by travel insurance coverage. For example, ISPOS reports that in 2013, 40% of Canadians who had upcoming international travel plans intended to buy travel insurance.

Fast forward to 2020, and this trend continued, as Insurance Business America reports again that only 40% of Canadians travelling outside of the country bought coverage specifically for their trips.

It's easy to think that nothing will happen to you while you're travelling until the unthinkable does. RBC Insurance reports that 33% of Canadians file an insurance claim for overseas doctor visits. Without travel insurance coverage, you could face expensive out-of-pocket costs, emphasizing the necessity of including coverage in your plans--not only for financial protection but also for your peace of mind.

Types of travel insurance coverage

While the specifics of travel insurance policies vary between insurance plans and companies, here are some of the most common coverage options available:

Trip cancellation and interruption

The trip cancellation insurance/trip interruption insurance portion of your travel insurance will reimburse your prepaid or non-refundable costs in the event your trip is cancelled or interrupted due to a covered scenario listed in your policy.

For example, severe weather conditions, the death of a family member, cancelled flights, or illness/sickness can all lead to last-minute cancellations. Given that trip cancellations happen frequently, with 58% of Canadians reporting they experienced some form of trip cancellation in 2023, trip cancellation coverage and trip interruption coverage can help you avoid paying for nonrefundable trip costs out of pocket.

Medical emergency

If you suffer a medical emergency while on your vacation, your travel health insurance will cover medical costs for any illnesses or injuries that happen during your travels.

Eligible medical expenses include medical treatment in hospitals, visits to the doctor, and transportation in an ambulance. Remember, provincial and employment health insurance rarely covers the full cost of medical expenses abroad.

Emergency medical evacuation

Your travel insurance policy also protects you in case you require emergency transportation to a medical facility or your home country by providing you with protection against any expenses incurred.

Baggage loss

According to Blue Cross, 20% of Canadians experienced lost baggage while travelling in 2023. Baggage coverage will provide compensation for any damaged, stolen, or lost baggage, including your personal belongings within the bag, like lost passports, credit cards, and more.

Depending on the specifics of your travel insurance policy, lost luggage can also provide coverage for essential items you may need to purchase if you lose your bags.

Trip delay

If, for some reason, your trip is delayed, your travel insurance plan will reimburse any additional expenses incurred because of the delay. This can include things like meals, accommodation, and transportation costs.

Travel accident or flight accident

In the unfortunate event that you are involved in an accident that results in your accidental death or dismemberment, your travel insurance can help provide your family members with a cash payment.

Rental cars coverage

Travel insurance plans also offer coverage if you rent a vehicle and it is damaged or stolen. Not all travel insurance plans have this as an automatic option, so make sure to ask your insurance company if you plan on renting a vehicle during your international travel.

24/7 assistance

Most trip insurance policies include a 24/7 assistance hotline that can help you navigate emergency medical care, accommodations, the loss of your passport or other important documents, and more.

Missed transport connection

Your travel insurance plan will also cover additional transportation costs if you miss your flight, train, or other modes of transportation.

What travel insurance doesn't cover

Although travel insurance covers an extensive portion of risks, it's important to remember that not all hazards or incidents receive coverage:

Pre-existing medical conditions

Most travel insurance policies will not cover pre-existing conditions and related medical costs.

High-risk activities

Lots of Canadians enjoy an adrenaline rush. But activities such as bungee jumping, skydiving, scuba diving, and other high-risk activities could severely injure you or lead to your death, which in this case, would be excluded from your travel medical insurance coverage.

Pandemics

COVID-19 and travel insurance policies are relatively new, and not all companies offer coverage. We suggest speaking to different providers to determine whether they provide insurance for pandemics or epidemics.

Intentional acts

Regardless of which travel insurance company or policy you use, intentional acts that cause harm to you or another individual will not be covered.

Destinations with a travel advisory

If the area you intend to travel to has an advisory, many travel insurance policies will not cover costs should war or other types of unrest occur during your stay. You can verify your destination is safe and approved to travel to by looking at the Government of Canada's travel advisory list.

Losses due to alcohol or drugs

Incidents that occur while you're under the influence of alcohol or drugs are usually excluded from coverage as well.

Cosmetic procedures

According to the National Institutes of Health, an estimated 52,000 Canadians travelled abroad for cosmetic procedures in 2014. With the cosmetics industry growing substantially in the last couple of years, it's safe to assume that this number has increased since.

Unfortunately, should you choose to travel outside of Canada for elective medical treatment and experience complications, your travel medical insurance will not cover you.

How to check for exclusions in your travel insurance

1. Read your policy: Like any insurance coverage, understanding what is and isn't included can help you make informed decisions about whether you need to purchase extra coverage. Reading the fine print is also recommended to ensure you understand what benefits you have while away.
2. Speak with your insurance company: When in doubt, contact an insurance agent or insurance broker in Ontario for clarification on what insurance coverage you have for your trip. They'll be happy to speak with you and answer any questions or concerns you may have.
3. Consider adding additional coverage: If you feel you don't have enough coverage under your travel insurance, consider adding additional coverage to your existing plan for added peace of mind.

How to choose the right travel insurance for your upcoming trip

All travellers are different, which is why, like any insurance plan, you need to do some pre-planning to ensure that your travel coverage actually reflects your needs and intended destination. Here are the factors you need to consider:

Trip length and destination

Longer trips and those planned to countries with expensive medical costs, like the United States, will require more comprehensive coverage. According to Debt.org, the average hospital stay costs $2,883 per day. This cost doesn't factor in potential treatments or medications you may require. So remember, this is not covered by your provincial health plan, which is why travel health insurance is imperative.

Planned activities

Think over what type of activities you have planned for your trip. If you're planning on participating in high-risk activities, ensure that you speak with your insurance company and confirm that your travel insurance includes coverage for these risks. Consider your modes of transport as well, like travelling in a car, train, bus, or plane. If you have certain needs, such as travelling while pregnant, ensure you have clearance from your doctor and note that you may have to opt for higher coverage limits and additional policies to be comprehensively protected.

Coverage comparisons

Not all policies are the same, so before getting travel insurance, compare the following:

Coverage limits

Look at different coverage limits for medical expenses, cancellation and interruption costs, and lost bags/personal belongings to determine which limits work for your needs.

Deductibles

Understand that some policies may require you to pay a deductible before your insurance kicks in. Choose a deductible you're comfortable with paying out of pocket.

Exclusions

Be aware that exclusions in your policy may exist. Understand these before deciding whether additional coverage is needed for your travels.

Insurance from your credit card company

Some credit companies offer travel insurance as a part of their benefits. However, oftentimes, this coverage isn't enough to provide comprehensive protection to you as a traveller and may only be limited to trips you've purchased on your credit card. Always review the terms and conditions of this coverage before considering whether additional travel insurance is necessary for your upcoming trip.

How to file a travel insurance claim

If you need to file a travel insurance claim, here's what you need to do:

Notify your insurance company immediately

Contact your provider as soon as the incident occurs. There may be reporting deadlines you need to meet.

Gather evidence and documents

Ensure you comprehensively document any evidence of the incident. This includes police reports, receipts, airline delays, and medical reports.

Submit your claim

Submit all documents to your insurer and stay informed about the progress of your claim moving forward.

Receive compensation

Once your claim has been approved, you'll receive compensation from your provider for any losses or damages that occurred.

Contact BrokerLink for affordable coverage today

BrokerLink works with some of the top insurance companies in Canada. Our team can help you shop around for the best coverage, whether you need travel trailer insurance, travel health insurance, trip interruption insurance, or other policies that are tailored to your unique travel needs and destination, compare travel insurance costs, and answer any questions you may have, so you can truly enjoy your vacation with peace of mind.

For safe travels abroad, contact BrokerLink over the phone to speak with us directly, or you can also get a free quote whenever you use our online quote tool!

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