Why should you get travel insurance?
If you plan to travel abroad or even stay in another province, it’s in your best interest to purchase travel insurance. It can help you avoid unexpected expenses if you face a medical emergency, lost luggage or a cancelled flight. And by covering costs such as medical treatments and lodging, it keeps your travel budget on track and gives you greater peace of mind.
Although it’s generally not mandatory, travel insurance is required in certain circumstances. It all depends on the nature of your trip and your destination.
Here are the requirements according to the type of trip you’re taking:
Tourism
In many cases, it isn’t mandatory to purchase travel insurance for short-term vacations. However, some countries require it to issue a visa or clear customs.
For example, you may need to provide proof of valid insurance to cross certain borders. In some cases, your provincial health insurance card may be sufficient for entry requirements, but it’ll only partially cover – or not cover at all – medical expenses once you arrive at your destination.
This means it’s a good idea to purchase travel insurance that covers medical care, hospitalization costs and repatriation to your home country. It can help you avoid significant expenses in the event of an accident or illness.
Business
Are you planning a business trip? Depending on the nature and duration of your stay, you may need to purchase travel insurance. For example, if you’re working in a European country for more than 90 days, you’ll need to obtain a visa from that country’s embassy or consulate in Canada before you leave. You’ll be required to provide proof of insurance that’s valid for the entire duration of your stay, and in some cases, you’ll need to present this proof to customs when you arrive at your destination.
Is your employer based in Canada? Check to see if your group insurance plan covers business trips or if you’re eligible for coverage while working abroad.
Pro tip
If you’re planning to work remotely from abroad, be sure to check:
- Whether your business has a policy on remote work
- Whether there’s a maximum number of days or weeks you’re allowed to work remotely
- Whether your group insurance plan or corporate credit card provides coverage outside of Canada
- What the tax implications of this type of trip are
→ Check out our tips on working remotely from abroad
Study
If you plan to study in another country, you should purchase insurance. Contact the educational institution you’ll be attending to find out what type of coverage you need to get before you leave. In some cases, health insurance may be included in your tuition. If your dependent child is going on a study abroad program, your family insurance plan may also cover their stay.
Pro tip
Find out what number to call in your host country in case of an emergency – many people don’t realize that 911 isn’t universal. Some countries even have three separate numbers for contacting the police, calling an ambulance or reporting a fire.
What’s covered by travel insurance?
Insurance policies vary from one company to another, but most cover the following risks:
Medical care
Let’s say you’re in a motorcycle accident or contract a rare illness while abroad. Without travel insurance, hospital bills – or even a simple visit to a clinic – could be very expensive. In some cases, you’ll have to pay the bill right away.
If you have travel insurance, all it takes is a quick call to receive emergency assistance, helping take some of the weight off a difficult situation.
Good to know
If your province’s health insurance covers certain costs incurred abroad, reimbursement will be based on the rates in effect within its jurisdiction. You’ll then have to pay the difference.
Accidental death or dismemberment
Some insurance policies offer additional coverage if you lose the use of a limb, fall into a coma, or die as the result of an accident. A lump-sum payment will be made to you or, in the event of death, to your beneficiary. This coverage can make all the difference, as it includes land or air repatriation back to Canada, if necessary.
Flight delay or cancellation
Is a flight delay or cancellation forcing you to stay abroad? Your travel insurance policy may reimburse you for living expenses such as accommodation and meals. If a layover that was supposed to last a few hours ends up lasting several days, it can be a huge relief to receive compensation for these additional costs.
Loss or theft of luggage
Imagine your suitcase didn’t make it to your destination and the only clothes you have are the ones you’re wearing. If your travel insurance includes coverage for lost or stolen luggage, you’ll be able to buy whatever you need to enjoy your vacation.
Losing important documents while abroad, such as your passport and credit cards, can also cause you a lot of trouble. Some travel insurance policies will reimburse you for the cost of replacing them.
Pro tip
Before you leave, make a copy or take a photo of the identification page of your passport. If this document is lost or stolen once you arrive at your destination, contact the nearest Canadian embassy or consulate as soon as possible.
If you’ve misplaced your debit or credit card, you can temporarily block it by logging in to your account through your bank’s app or website. If it turns out to actually be lost or stolen, contact your financial institution.
Trip cancellation or interruption
There are several reasons why your trip might be cancelled or interrupted: your child becomes seriously ill, a member of your immediate family passes away, you lose your job or weather conditions prevent you from making your flight. In these situations, trip cancellation or interruption insurance could reimburse you for certain expenses, such as the cost of new airline tickets and accommodations.
Check to see if your insurance policy covers the costs incurred, either in full or in part.
Pro tip
To take full advantage of trip cancellation and interruption insurance, you should purchase it as soon as possible before your departure. Some coverage is only valid if it was purchased before or within a few hours of buying your plane ticket and booking your accommodation.
What isn’t covered by travel insurance?
Although each policy is different, most travel insurance policies aren’t valid under the following circumstances:
| Medical care |
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| Accidental death or dismemberment |
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| Flight delay or cancellation |
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| Loss or theft of baggage |
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| Trip cancellation or interruption |
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You’ll need to check your insurance policy for a complete list of exclusions.
How much does travel insurance cost?
There’s no set price for travel insurance. The amount you pay will vary depending on the insurance company and the policy you choose. That’s why you should take the time to shop around for coverage that fits your needs.
If you plan to take several trips throughout the year, some insurance companies offer annual travel insurance plans for trips of similar duration and cost.
Is the travel insurance provided by your credit card sufficient?
Many credit cards cover expenses incurred due to flight delays, lost luggage or car rentals during your trip. Check to see if your credit card also offers emergency medical insurance and whether the coverage is sufficient given your age and the length of your stay. If the coverage is only valid for a few days, it may be worth taking out additional policies.
→ Read our article on why you should use your credit card when you travel
Good to know
Some group insurance plans include travel insurance, so check with your employer to see if you’re already covered. If the coverage provided isn’t sufficient, you can supplement it with personal travel insurance for better protection.
Whether you’re heading out of town for a few days or going on a business trip for several weeks, you should request a quote to learn more about the different coverage options available. If you have any questions, don’t hesitate to ask our specialists – they’ll help you choose the coverage that’s right for your adventure.
Get a quote or speak with a specialist