In the wake of the COVID-19 crisis, travel insurance has become a prominent topic among Canadian adventurers. The pandemic left its mark not only on travel plans but also on finances, highlighting the importance of securing your journeys. Traveling is a joyous experience, a chance to explore new horizons and create lasting memories. Yet, amid the excitement, it’s crucial to prepare for the unexpected. Explore travel insurance Canada, your protection in unexpected situations
In this detailed guide, we will explore the realm of travel insurance in Canada, uncovering its importance, major providers, coverage choices, expenses, and typical exceptions. Whether you are planning a local getaway or an international odyssey, this guide will empower you with the knowledge needed to travel with confidence, knowing you are safeguarded against the uncertainties.
Table of Contents
- What is Travel Insurance?
- What Does Travel Insurance Cover?
- Importance of Travel Insurance in Canada
- Top Canadian Travel Insurance Providers
- What are the Different Types of Travel Insurance?
- How Much Does Travel Insurance Canada Cost?
- What Travel Insurance Canada Should Include?
- Common Exclusions in Travel Insurance Policies
- Wrapping Up: Your Roadmap to Secure Travels
What is Travel Insurance?
Travel insurance serves as a form of protection aimed at securing the financial commitment you have made for your journey. It offers compensation for various financial setbacks, including trip cancellations or interruptions, emergency medical treatment while traveling, evacuation in emergencies, damage to rental vehicles, lost luggage, and more. In Canada, the medical component of travel insurance is particularly crucial due to variations in healthcare coverage by province and potentially higher costs outside your home province.
Travel insurance comes in different forms, such as individual policies, optional additions when booking travel services, or even as a benefit provided by certain credit cards for travel-related purchases. It’s essential to carefully assess your specific travel needs and review the terms and coverage of the insurance policy to ensure it aligns with your requirements for your upcoming trip.
What Does Travel Insurance Cover?
Travel insurance coverage varies depending on your chosen insurer and the level of the plan you select. Typically, it includes emergency medical care, trip cancellation, trip interruption, and protection for lost or damaged baggage.
Think of travel insurance as a tailored outfit for your trip. If you already have extra health coverage and are traveling within Canada, a basic plan that covers trip cancellations might be sufficient. However, if you are planning a tropical beach vacation in Hawaii, it’s wise to opt for a comprehensive plan that includes medical care and a way to bring you back home if you encounter a health issue during your trip. This way, you can have peace of mind while enjoying your vacation.
Importance of Travel Insurance in Canada
As you plan your trip to Canada, you may be aware of the waiting period before your provincial health plan becomes active, especially for new PR holders. During this period, you won’t have access to the same healthcare benefits as Canadian citizens. This is where travel insurance steps in to assist.
Why Choose a Canadian Travel Insurance Provider?
When it comes to selecting a travel insurance provider in Canada, it’s highly advisable to opt for a Canadian company. Here’s why:
1) Familiarity with the Canadian Healthcare System: Canadian insurance companies are well-versed in the nuances of the Canadian healthcare system. They understand the intricacies of provincial health plans, making it easier for you to navigate the coverage options.
2) Prompt Payment: Canadian travel insurance providers are more likely to process and pay claims promptly. This is crucial when you need medical assistance while in Canada, as you won’t want to be burdened with lengthy claim procedures during a time of crisis.
3) Cashless Transactions: Many Canadian travel insurance companies offer cashless transactions with healthcare providers in Canada. This means you can receive medical treatment without having to pay upfront and then seek reimbursement.
Top Canadian Travel Insurance Providers
Now that you understand the importance of choosing a Canadian travel insurance provider, let’s explore some of the top companies that cater to newcomers and visitors.
Here are some of the well-known travel insurance providers in Canada:
- Manulife
- 21st Century
- Allianz Global Assistance
- BMO (Bank of Montreal)
- CIBC (Canadian Imperial Bank of Commerce)
- Desjardins
- Goose Insurance
- Johnson Insurance
- Medipac
- RBC (Royal Bank of Canada)
- Scotiabank
- TD Insurance (Toronto-Dominion Bank)
- World Nomads
These providers offer various travel insurance policies, each with its coverage options and limits.
1) Manulife
Manulife is a prominent insurance and financial services company headquartered in Canada. It operates globally and provides a wide range of insurance products, including life insurance, health insurance, and retirement solutions. Additionally, Manulife offers investment and wealth management services to help individuals and businesses plan for their financial future. With a long history and a strong presence in the insurance industry, Manulife is known for its commitment to helping customers secure their financial well-being.
Policy name: CoverMe Single-Trip All-Inclusive Plan
Type of coverage:
- Emergency medical care: $10 million
- Trip cancellation or interruption: $3,500 per trip
- Baggage loss or delay: $1,000 (loss), $500 (delay)
- Flight and travel accidents: $100,000 (flight), $50,000 (travel)
2) 21st Century
21st Century Travel Insurance is a Canadian-based insurance company that specializes in providing travel insurance coverage for individuals traveling within Canada and internationally. They offer various travel insurance plans to suit different needs, including coverage for trip cancellations, emergency medical expenses, trip interruptions, and more. It’s important to carefully review the specific policies and coverage options offered by 21st Century Travel Insurance to ensure they meet your travel insurance needs.
Policy name: Medicare International Travel Insurance – All-Inclusive Plan
Type of coverage:
- Emergency medical care: $10 million
- Trip cancellation or interruption: $3,500 per trip
- Baggage loss or delay: $1,000 (loss), $500 (delay)
- Flight and travel accidents: $100,000 (flight), $50,000 (travel)
3) Allianz Global Assistance
Allianz Global Assistance is a leading international travel insurance and assistance services provider. They offer a wide range of travel insurance products designed to protect travelers against unexpected events during their journeys. These insurance plans typically cover aspects like trip cancellations, emergency medical assistance, baggage loss or delay, and other travel-related issues.
One notable feature of Allianz Global Assistance is its extensive global network of medical providers and assistance services, ensuring that travelers can receive help and support wherever they are in the world.
Policy name: Medical + Cancellation Plan
Type of coverage:
- Emergency medical care: $10 million
- Trip cancellation or interruption: Amount purchased
- Baggage loss or delay: $1,000 (loss), $400 (delay)
- Flight and travel accidents: $100,000 (flight), $50,000 (accidental death & dismemberment)
4) BMO (Bank of Montreal)
BMO Travel Insurance is offered by the Bank of Montreal (BMO), one of Canada’s major financial institutions. BMO provides various travel insurance options to protect individuals and families while traveling domestically or abroad. Their travel insurance policies typically include coverage for trip cancellations, emergency medical expenses, baggage loss or delay, and other travel-related incidents. Customers can choose from different BMO Travel Insurance plans, depending on their specific needs and the type of trip they are taking.
Policy name: Single Trip Premium Travel Plan
Type of coverage:
- Emergency medical care: $5 million
- Trip cancellation or interruption: Up to the sum insured to a maximum of $20,000 per certificate (cancellation), $2,000 per insured person (interruption)
- Baggage loss or delay: $750 per insured person to a maximum of $2,000 per trip
5) CIBC (Canadian Imperial Bank of Commerce)
CIBC offers travel insurance to help individuals and families protect themselves while traveling. CIBC Travel Insurance provides coverage for various aspects of your trip, including trip cancellations, emergency medical expenses, baggage loss or delay, and other travel-related incidents. They offer different insurance plans to cater to the diverse needs of travelers, whether they are going on a domestic or international trip. CIBC’s travel insurance aims to provide peace of mind and financial protection in case unexpected events occur during your journey.
Policy name: Comprehensive Travel Insurance
Type of coverage:
- Emergency medical care: $10 million
- Trip cancellation or interruption: Amount purchased; available up to $50,000 per person for trip cancellation
- Baggage and personal effects: $2,000
- Accidental death and dismemberment: $10,000
6) Desjardins
Desjardins Travel Insurance is offered by Desjardins Group, a prominent Canadian financial cooperative. They provide a range of travel insurance options to help individuals and families safeguard their trips against unforeseen events. Desjardins Travel Insurance typically includes coverage for trip cancellations, emergency medical expenses, baggage loss or delay, and various other travel-related issues. Desjardins offers different travel insurance plans to cater to different travel needs, whether you are traveling domestically or internationally.
Policy name: Travel Insurance
Type of coverage:
- Emergency medical care: $5 million
- Trip cancellation or interruption: Non-refundable fees paid to a travel service provider
- Baggage loss or delay: Actual value of baggage and personal effects, up to $500 for jewelry, watches, or articles made of gold, silver, or platinum; $500 for other belongings; $500 for baggage delay
- In the event of a flight accident, the insurance provides a full payout (100%) for cases involving the loss of life or the loss of functionality in two or more body parts. Additionally, there is a 50% payout for incidents resulting in the loss of use of a single body part.
- For accidents that occur during travel, if a passenger on a common carrier vehicle loses their life due to an accident, the insurance offers a 200% payout. In other accidents during travel resulting in the loss of life or the loss of use of two or more body parts, the insurance provides a 100% payout. Similarly, for the loss of use of a single body part in such cases, there is a 50% payout.
7) Goose Insurance
Goose Insurance is a digital insurance platform based in Canada. They specialize in providing travel insurance solutions for Canadians, with a focus on simplifying the insurance-buying process. Goose Insurance offers a range of travel insurance plans designed to meet the needs of various types of travelers, whether you are going on a short domestic trip or an international adventure.
One notable feature of Goose Insurance is the user-friendly mobile app, which allows customers to purchase and manage their travel insurance conveniently on their smartphones. The app also provides real-time information and assistance during your travels.
Policy name: Single Trip Worldwide
Type of coverage:
- Emergency medical care: $10 million
- Trip cancellation or interruption: Up to sum insured
- Baggage insurance (optional): $1,500 per insured to a maximum of $3,000 for the family
- Unstable pre-existing medical condition (optional): $250,000
8) Johnson Insurance
Johnson Insurance is a well-established insurance company in Canada. They offer a wide range of insurance products, including home insurance, travel insurance, and more. Johnson Insurance is known for providing insurance solutions to various sectors, including individuals, families, and groups. In the context of travel insurance, they offer comprehensive coverage for travelers, both for domestic and international trips.
Policy name: MEDOC Travel Insurance
Type of coverage:
- Emergency medical care: $10 million
- Trip cancellation or interruption: $15,000 per insured person per trip
- Baggage and personal effects: $1,500 per insured person to a maximum of $3,000 per family
- Flight accident: In case of death, there is a $150,000 payout to the policyholder’s estate. For injuries resulting in the loss of both hands or feet, or the loss of sight in both eyes, a $150,000 benefit is provided. Injuries leading to the loss of a single hand or foot, or the loss of vision in one eye, are covered with a $75,000 benefit.
- Accidental death and dismemberment: If the policyholder suffers fatal injuries, there is a $50,000 payout to their estate. Injuries causing the loss of both hands or feet, or sight in both eyes, are covered with a $50,000 benefit. In cases where a policyholder experiences the loss of a single hand or foot, or the loss of vision in one eye, a $25,000 payout is applicable.
9) RBC (Royal Bank of Canada)
The Royal Bank of Canada offers a variety of travel insurance options to help protect individuals and families while traveling. RBC’s travel insurance typically includes coverage for trip cancellations, emergency medical expenses, baggage loss or delay, and other travel-related issues. They offer different travel insurance plans to cater to different types of trips, whether you are traveling domestically or internationally.
Policy name: Classic Medical Single-Trip Plan
Type of coverage:
- Emergency medical care: Unlimited
- Return to trip destination: One-way economy fare
- Out-of-pocket expenses: $1,750
- Repatriation of remains: Unlimited transportation costs
- Emergency transportation: One-way economy fare, or stretcher, or qualified medical attendant or air ambulance
- Return of excess baggage: $500
10) Scotiabank
Scotiabank, a prominent Canadian financial institution, offers travel insurance to help individuals and families protect themselves while traveling. Scotiabank’s travel insurance typically includes coverage for various aspects of your trip, such as trip cancellations, emergency medical expenses, baggage loss or delay, and other travel-related incidents.
Scotiabank provides different travel insurance plans to cater to different travel needs, whether you are going on a domestic trip or an international adventure.
Policy name: Out of Province (Single-Trip All-Inclusive Plan)
Type of coverage:
- Emergency medical care: $5 million
- Trip cancellation or interruption: $3,500 per trip
- Baggage loss or delay: $1,000 (loss), $500 (delay)
- Flight and travel accidents: $100,000 (flight), $50,000 (travel)
11) TD Insurance (Toronto-Dominion Bank)
TD Insurance is a subsidiary of TD Bank, one of Canada’s major financial institutions. TD Insurance offers a range of insurance products, including travel insurance, to help individuals and families protect themselves while traveling. TD Insurance Travel Insurance typically includes coverage for various aspects of your trip, such as trip cancellations, emergency medical expenses, baggage loss or delay, and more.
Policy name: Travel Medical Insurance Single-Trip Plan
Type of coverage:
- Emergency medical care: $5 million
- Private duty nursing: $5,000 per trip
- Accidental dental: $2,000
- Bedside companion benefit: Round-trip economy airfare and up to $1,500 for meals and accommodations
- Vehicle return: $2,000
- Return of deceased: $10,000
12) Medipac
Medipac Travel Insurance is a Canadian insurance provider specializing in travel insurance coverage for Canadian travelers. It is known for catering to the needs of seniors who are traveling abroad. Medipac offers a range of travel insurance plans designed to address the unique requirements of older travelers. What sets Medipac apart is its focus on providing comprehensive emergency medical coverage, which is crucial for travelers, especially seniors.
Policy name: MedipacMAX
Type of coverage:
- Emergency medical care: $5 million (including COVID-19)
- Accidental death: $10,000
- Relocation benefit: $5,000
- Pet benefit: $1,500
- Excess luggage benefit: $1,000
- Return to Canada benefit: $4,000
- Canadian hospitalization benefit: $2,000
- Inpatient rehabilitation benefit: $5,000
13) World Nomads
World Nomads is a well-known travel insurance provider that specializes in serving travelers with a sense of adventure and exploration. They offer travel insurance plans tailored to the needs of individuals who embark on adventurous and immersive journeys, such as backpackers, adventure seekers, and digital nomads.
Key features of World Nomads travel insurance often include coverage for a wide range of activities and experiences, including adventurous sports and activities like hiking, scuba diving, and more. They also typically cover emergency medical expenses, trip cancellations, baggage loss or delay, and other common travel-related issues.
World Nomads is popular among travelers who seek flexibility, as they often allow policyholders to purchase or extend coverage while already abroad, making it suitable for longer trips.
Policy name: Travel Insurance Standard Plan
Type of coverage:
- Emergency medical care: $5 million
- Trip cancellation or interruption: $2,500 per trip; $700 per day (trip delay)
- Emergency evacuation and repatriation: $500,000
- Bedside companion travel and subsistence: Maximum 10 days; return economy airfare
- Baggage loss or delay: $1,000 (loss), $100 (delay)
- Flight and travel accidents: $50,000 (flight), $10,000 (travel)
- Return of remains: $5,000
What are the Different Types of Travel Insurance?
Travel Insurance Canada comes in several categories. The most common ones include:
- Baggage insurance: This covers loss or damage to your belongings during your trip.
- Emergency medical insurance: Provides coverage for unexpected medical expenses while traveling.
- Trip cancellation: Protects your prepaid trip costs if you have to cancel due to covered reasons like illness or emergencies.
- Trip interruption: Offers reimbursement for expenses if your trip is cut short due to covered events.
- All-inclusive policies: Comprehensive coverage that combines various types of protection in one policy.
Additionally, when you are in the process of buying travel insurance, take into account your yearly travel frequency. You can choose between single-trip and annual coverage options, with annual plans potentially offering cost savings if you plan to travel twice or more in a year.
How Much Does Travel Insurance Canada Cost?
Estimates vary, with some sources suggesting Travel Insurance Canada typically ranges from 5% to 6% or 4% to 8% of your total trip expenses. It’s a good idea to plan for a bit more, so going with the higher estimate is a sensible choice in your planning stage. In general, the more expensive your trip, the higher the cost of your travel insurance.
Several factors influence the cost of a travel insurance policy:
- The number of individuals to be covered
- The age and specific health requirements of each person being covered
- Your choice of coverage level
- The destination and duration of your trip
What Travel Insurance Canada Should Include?
Travel insurance typically includes coverage for various situations, such as flight delays, lost luggage, and emergency medical services. While some types of coverage are fairly standard, it’s essential to note that they can vary among different insurance providers.
Check some of the common coverage types available in Canada:
| Type of travel insurance in Canada | Coverage and other details |
| Emergency Medical | Provides coverage for healthcare and medical expenses during your travels. This may necessitate an assessment of previous or existing health conditions. |
| Trip Cancellation | Provides coverage for flights and hotel reservations that cannot be canceled. Requires adherence to a pre-approved list of cancellation reasons. This insurance type is relatively uncommon, particularly when associated with credit cards. |
| Trip Interruption | Provides coverage for unexpected early returns, including expenses like flight rebooking and hotel cancellations. This type of coverage is more prevalent compared to trip cancellation insurance. |
| Flight delay | Includes coverage for additional expenses resulting from flight delays, such as meals, accommodation, personal items, and more. |
| Baggage delay | Provides coverage for the additional expenses incurred due to delayed baggage, which may include buying clothing and personal items. |
| Lost or stolen baggage | Offers financial support to replace the contents of your lost luggage, subject to a predefined limit. |
| Personal effects | Safeguards your personal possessions for the entirety of your journey, providing coverage for loss, theft, and damage. |
| Hotel burglary | Offers protection for all personal items inside your hotel room, specifically against theft, excluding coverage for loss or damage. |
| Rental car theft and damage | Provides coverage for expenses related to rental car damage or theft. This coverage can be sourced from your credit card or personal car insurance. |
| Rental car accident | Provides protection against any rental vehicle damage resulting from a collision. |
| Rental car personal effects | Offers financial assistance for replacing personal belongings left in a rental car, covering losses due to damage, loss, or theft. |
| Travel Accident | Provides compensation in cases of dismemberment or loss of life that occur on common carriers such as planes, trains, or boats, with payouts generally reserved for severe incidents. |
Common Exclusions in Travel Insurance Policies
Travel insurance has its limitations, and there are certain scenarios that are typically excluded from coverage. Here are some examples of what most insurance providers may not include in their policies:
- Pregnancy-related expenses
- Medical tourism, which involves traveling for medical procedures
- Refills for regular medications
- Vision care expenses
- Routine health checkups or follow-up appointments
- Non-emergency medical treatments and cosmetic surgeries
- Mental health disorders
- Issues related to drug or alcohol use
- Pandemics, outbreaks, or disasters at your destination before departure
- Last-minute changes to your travel plans
It’s possible that your chosen travel insurance provider may offer coverage for some of these items, but it’s not something you should rely on. It’s crucial to carefully review your policy, especially the fine print, before making a commitment.
Wrapping Up: Your Roadmap to Secure Travels
As your journey progresses, consider travel insurance as your guide to a safe and stress-free expedition. It’s not just a financial safety net; it’s your assurance of a smooth journey. From medical emergencies to trip cancellations, travel insurance ensures that your travel dreams remain intact. So, as you prepare for your next expedition, let this guide be your compass, steering you through the intricacies of travel insurance. With this knowledge, you can set forth with confidence, ready to embrace the world and all its wonders.
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