Which travel insurance coverage do I need?

One trip, several kinds of insurance coverage

Some travel insurance protects you as an individual, while other kinds protect your investment or property. And, of course, you have to buy it at the right time. Is travel insurance is mandatory? No, but you may regret not getting it. You can’t get coverage for a problem after it has happened.

Medical travel insurance

Emergency medical care coverage protects the individual. You can purchase your travel insurance (or request a quote) online or in person at any time before your trip. It covers the cost of hospitalization or clinic visits following an accident or health issue while travelling and may even include telemedicine services (giving you easy access to a doctor). Some insurers cover the costs up front, while others will reimburse you upon receipt of invoices (you will need to complete a claim form and make sure your credit card can cover major hospital bills). Be sure to check for exclusions, including those due to your age or health and pre-existing conditions (such as cancer). You can also choose to add a deductible, which may lower your premium.

Good to know: Minimum coverage of $1 million or even more is generally recommended if you’re travelling to the United States.

Trip cancellation insurance

Trip cancellation insurance protects your investment. You must purchase it at the same time as your trip or as soon as possible afterwards. It covers non-refundable expenses incurred before the trip, including down payments, plane tickets, accommodations, excursions, and vehicle rentals. It also includes expenses incurred during the trip, such as excursions purchased at the destination that you are unable to take part in for an unforeseen and serious reason that’s beyond your control.

Good to know: You can sometimes cancel a trip without insurance, so always check the tour operator or carrier’s cancellation conditions. Some are more flexible than others, and this often reflects the price paid: The less you pay, the more restrictions there are.

Trip interruption insurance

Trip interruption insurance also protects your wallet and must also be purchased as soon as possible after booking your trip or at the same time. It covers additional travel costs in situations that are beyond your control, such as meals and lodging when flights are cancelled or delayed, return plane tickets in case of an emergency, and excursions that you could no longer take.

Good to know: Some insurers limit the benefit amounts, while others offer amounts that are to be determined. Ask for details. You should also know that trip cancellation and interruption insurance are often offered together. This is generally a more economical solution.

Baggage insurance

Baggage loss or theft insurance protects your property as long as you purchase it before your trip. It covers the loss or theft of your luggage, which means all the property travelling with you and that you purchase at your destination. There are coverage limits for some kinds of property like electronics, and they may be less than the value of your devices, so read your contract carefully. Your home insurance may also cover property stolen while travelling, but you’ll have to pay a deductible and a claim will appear on your home insurance file for the next few years, which may impact your premium.

Good to know: A document attesting to the theft or a written statement from the local police will be required to obtain compensation. You may also be asked to list the contents of your luggage.

Rental vehicle insurance

Rental vehicle damage insurance is exactly what the name says. What isn’t always clear is what it covers and where, which depends on whether it’s an endorsement added to your own auto insurance, coverage through your credit card, group insurance or travel insurance, or insurance through the vehicle rental agency. Of course, you have to buy it before you hit the road with your rental vehicle.

Good to know: Many of these coverage options do not include civil liability, even though it’s mandatory. When leaving the country, a coverage amount of $2 million is recommended.

Credit card insurance

If you are considering coverage through your credit card, check to see if you need to pay for your entire trip with the card. And regardless of the insurance, read your policy carefully before you leave to understand how much coverage you have and for how long to avoid unpleasant surprises at your destination. If necessary, be sure to add additional coverage to protect you in certain situations.

Does your travel insurance offer assistance?

Most insurers have a 24-hour travel assistance service, but they aren’t all the same.

• Is yours available in multiple languages? Are any interpretation services offered?
• Is there help available if your passport, credit card, or driver’s licence is lost or stolen?
• Is repatriation for you and your family included?
• What about transportation and a living allowance so that a loved one can get to your bedside if needed?

Assistance services are often underestimated but can be a great help when a problem occurs.

How much does travel insurance cost?

The cost of travel insurance varies depending on the length of your trip, age, health conditions, deductible amount, and selected coverage. Sure, it’s another cost to add to your travel budget, but not getting it could cost you a lot more, even if you’re just going on a simple shopping trip or a short getaway to the United States! Here are some tips to save money:

• Opt for annual travel insurance, which becomes worth it once you take your second trip in the same year, and is often a better deal than travel insurance for a single trip.
• Choose family insurance if you’re travelling with several family members. Children are often insured at no extra cost.
• Check your credit card or group insurance coverage. You may be able to just supplement that coverage (for example, by adding trip interruption insurance).
• Purchase your coverage options as part of a package (comprehensive insurance). It’s often cheaper than buying them individually.

Something to keep in mind: The most costly insurance is the kind you never took out. Travelling with peace of mind is priceless!

Which insurance for what kind of trip?

Being well insured doesn’t mean being insured for everything all the time; it means having the right coverage at the right time. Here’s an overview of useful coverage depending on the type of trip you’re about to take.

• You’re travelling out of province but within Canada and use your own vehicle. You have few (or no) prepaid bookings:
  • Emergency medical care insurance
• You’re travelling out of province but within Canada and are taking a plane, bus, or train. You’ve made reservations and incurred expenses before departure:
  • Emergency medical care insurance
  • Trip cancellation insurance
  • Trip interruption insurance
  • Lost or stolen baggage insurance
  • Rental vehicle damage insurance – If you’re renting a car in Canada and don’t have Endorsement Q.E.F. 27 on your own car insurance policy

  You can purchase these coverage options separately or as a package, which is usually a better deal.

• You’re travelling outside Canada and using your own vehicle. You have few (or no) prepaid bookings:
  • Emergency medical care insurance
  • Civil liability coverage of at least $2 million on your auto insurance policy
• You’re travelling outside Canada by plane, bus, or train and you’ve made reservations and incurred expenses before departure, or will incur penalty fees in the event of a cancellation:
  • Emergency medical care insurance
  • Trip cancellation insurance
  • Trip interruption insurance
  • Lost or stolen baggage insurance
  • Rental vehicle damage insurance – If you’re renting a car abroad, including in the United States, and don’t have Endorsement Q.E.F. 27 on your own car insurance policy
• You’re going on a cruise and will be making one or more stops. You’ve made reservations and incurred expenses before departure or will incur penalty fees in the event of a cancellation:
  • Emergency medical care insurance
  • Trip cancellation insurance
  • Trip interruption insurance
  • Lost or stolen baggage insurance

Last but not least, you should know that travel advisories issued by the Canadian government can have an impact on your insurance. Some situations (like getting COVID-19 or other illnesses) may be covered in some countries but not in others if an advisory about them is issued. Before paying for a trip and travel insurance, check the Government of Canada’s travel advice and advisories by destination.