What is Travel Insurance?

Planning a vacation should be exciting, not stressful. But what happens if you get sick abroad, your flight gets cancelled, or your luggage goes missing?

That's where travel insurance comes in. It's like a financial safety net that protects you from unexpected costs when things go wrong during your trip.

Travel insurance is a type of coverage that reimburses you for certain losses and provides assistance services when you're traveling. Think of it as protection for both your money and your peace of mind.

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What does travel insurance actually cover?

Travel insurance is typically a package of different protections bundled together:

Trip Cancellation/Interruption

If you have to cancel your trip before leaving (due to illness, family emergency, or other covered reasons) or cut it short, this covers your non-refundable expenses like flights and hotels.

Emergency Medical Coverage

This is huge when traveling internationally. If you break your leg skiing in Colorado or get food poisoning in Mexico, this covers hospital bills, doctor visits, and prescription medications that your regular health insurance might not cover abroad.

Baggage Protection

Lost luggage? Stolen camera? This coverage reimburses you for personal items that are lost, stolen, or damaged during your trip.

Travel Delays

When your flight is delayed for hours and you need to pay for meals and overnight accommodation, this coverage picks up those unexpected costs.

Emergency Evacuation

If you're seriously injured or ill in a remote location, this covers the cost of getting you to proper medical care. This can cost up to tens and thousands of dollars.

Do you really need travel insurance?

Travel insurance isn't mandatory, but here's when it makes the most sense:

You're traveling internationally: Your provincial health insurance has limited or no coverage outside Canada, making medical coverage essential.

You've paid for expensive, non-refundable trip costs: If you've spent $3,000 on flights and hotels, protecting that investment with $150 in travel insurance is often worth it.

You're traveling during risky seasons: Hurricane season in the Caribbean, flu season anywhere, or traveling during political instability increases your chances of needing coverage.

You have health conditions: If you have ongoing medical issues, you're at higher risk of needing medical care while traveling.

You might skip travel insurance if you're taking a short domestic trip, staying with family, or if your travel costs are minimal and easily absorbed if something goes wrong.

What does travel insurance cost?

Travel insurance typically costs between 4-8% of your total trip cost.

For a $2,000 vacation, you might pay $80-160 for coverage.

Several factors affect the price:

• Your age: Older travellers pay more due to higher medical risks

• Trip length: Longer trips cost more to insure

• Destination: Some countries are considered higher risk

• Coverage amount: More comprehensive plans cost more

• Pre-existing conditions: These may increase your premium or require special coverage

How to Buy Travel Insurance

When to buy: Purchase travel insurance as soon as you book your trip. Many benefits, like pre-existing condition waivers, are only available if you buy within a certain timeframe (usually 14-21 days of your first trip payment).

Where to buy: You can purchase through travel agents, directly from insurance companies, online comparison sites, or sometimes through your credit card company. Don't just buy from the first place you see – shop around for the best coverage and price.

What to look for: Read the policy carefully, especially the exclusions. Make sure it covers your specific activities (some policies exclude adventure sports), destination, and any pre-existing medical conditions you have.

Your credit card might already help

Many credit cards offer some travel protection, but it's usually limited.

Premium cards might cover:

• Trip cancellation (often only if paid with that card)

• Lost baggage

• Rental car insurance

• Some emergency medical coverage

However, credit card coverage often has gaps – lower coverage limits, specific exclusions, or only covering trips paid entirely with that card.

Check what your card offers, but don't assume it's comprehensive coverage.

Common travel insurance myths busted

"It's too expensive": At 4-8% of your trip cost, it's usually much cheaper than paying out-of-pocket for a medical emergency or cancelled trip.

"My health insurance covers me everywhere": Most provincial health plans provide minimal coverage outside Canada, and often require you to pay upfront and wait for reimbursement.

"Nothing will happen to me": Travel disruptions are more common than you think – flight delays, weather events, and minor injuries happen to ordinary travellers every day.

"It covers everything": Travel insurance has exclusions. It won't cover you if you're drunk, participating in extreme sports (unless specifically covered), or traveling against government advisories.

Travel smart, travel protected

Travel insurance is relatively inexpensive protection against potentially expensive problems. While you might never need to file a claim, having coverage lets you travel with confidence knowing you're protected against the unexpected.

Before your next trip, take a few minutes to evaluate your needs, compare options, and consider investing in travel insurance.