Travel Insurance Coverage Explained. A Guide for Travellers.
- Dan Donnelly
- 17 minutes ago
- 11 min read
What’s your dream vacation? Maybe you envision yourself relaxing on a beach, exploring a new city, visiting family abroad, or heading off on an adventure somewhere completely new.
Whatever your travel plans look like, unexpected events can happen before or during your trip. Flight disruptions, lost baggage, illness, injury, and other unforeseen events or circumstances can quickly turn an exciting trip into an expensive problem.
That’s where travel insurance can help. Whether you’re a Canadian travelling abroad or a Visitor to Canada, depending on the policy you choose, travel insurance can provide financial protection for eligible medical emergencies, trip cancellations, interruptions, baggage losses and other covered travel-related events.
Travel insurance policies can vary significantly, so understanding the different types of travel insurance coverage and benefits can help you choose a policy that fits your trip.
The Main Types of Travel Insurance Coverage
Travel insurance policies vary by provider and plan, but common types of coverage include:
Emergency Medical Insurance
Non-Emergency Medical Insurance
Visitors to Canada Insurance
Trip Cancellation and Trip Interruption Insurance
Baggage & Personal Effects Coverage
Sports & Activities Coverage.
Within these types of policies, there are also benefits and services that may be particularly relevant to your travel plans or provide added peace of mind, depending on your destination and what you plan to do. These may include emergency remote evacuation, repatriation, flight delay services, return of your vehicle, or coverage for extreme sports & activities for our adventurers.
Here’s a closer look at some of the most common travel insurance benefits for Canadians.
Emergency Medical Coverage
No one wants to think about becoming sick or injured while travelling, but a medical emergency can happen anywhere.
Provincial and territorial health plans generally provide limited coverage outside Canada, and the Government of Canada recommends that Canadians travelling abroad purchase travel health insurance. Depending on your existing private or employer benefits, you may have some additional coverage, but it is important to understand what those plans actually provide before you leave Canada.
The right travel medical insurance policy can help cover eligible emergency medical expenses while you are travelling outside your province or territory.
Depending on the policy, covered expenses may include, but are not limited to:
Hospital stays
Physician services
Emergency room treatment
Diagnostic testing
Prescription medications
Ambulance transportation
Emergency medical transportation home
Emergency remote evacuation
Private/Semi-Private hospital room
Repatriation services
Coverage limits, exclusions, deductibles, and eligibility requirements vary by policy. Pre-existing medical conditions can also be subject to specific stability requirements or exclusions.
This is why it is important to read the policy wording and understand what is covered before you travel.
Trip Cancellation and Trip Interruption Insurance
If you want travel protection beyond emergency medical expenses, you may also want to consider Trip Cancellation and Trip Interruption Insurance.
These benefits are designed to protect eligible prepaid, non-refundable travel expenses when certain covered events affect your travel plans.
Trip Cancellation Coverage
Trip Cancellation Insurance generally applies when you need to cancel your trip before departure because of a covered reason.
Depending on the policy, covered reasons may include circumstances such as:
A covered illness or injury
Death of a family member or other covered person
Severe weather events or natural disasters
Pilot strike
Level 4 (Avoid All Travel) Travel Advisory
If your cancellation meets the policy requirements, you may be reimbursed for eligible prepaid, non-refundable travel expenses, subject to the applicable coverage limits and conditions. These expenses could include eligible airline tickets, accommodations, tours and other prepaid travel arrangements.
It is important to remember that not every reason for cancelling a trip is covered. Your policy determines which cancellation reasons qualify as covered risks. One of the most important requirements, however, is that the reason for cancellation is generally ‘unknown and unforeseen’ when you purchase your coverage. Once a circumstance or event becomes known, it may no longer be considered unforeseen and may not be covered.
This is why it is highly recommended to purchase Trip Cancellation Insurance as soon as you know your travel dates. If you purchase your coverage before a circumstance or event becomes known and that event later causes you to cancel your trip, you may have coverage if the event and your circumstances meet the requirements of your policy. If you wait until after the event or circumstance becomes known to purchase coverage, that known event will generally not be covered.
In other words, timing matters. Travel insurance is designed to protect you against unforeseen events, not events that are already known or expected when you purchase your policy.
Always review your specific policy wording to understand when coverage begins and what cancellation risks are covered.
Trip Interruption Coverage
Trip Interruption Insurance applies after your trip has begun.
If a covered event requires you to interrupt your trip, your policy may reimburse eligible unused prepaid travel expenses and certain additional costs resulting from the interruption.
For example, if a covered family emergency requires you to return home early, Trip Interruption benefits may help with eligible additional transportation expenses and the unused portion of certain prepaid travel arrangements.
The specific benefits, limits, and covered reasons vary by policy.
Baggage and Personal Effects Coverage
Lost, stolen, damaged or delayed baggage can be frustrating, especially when you're far from home.
Depending on the policy, travel insurance may provide benefits for baggage and personal belongings when they are lost, stolen, damaged or delayed under circumstances covered by the policy.
Covered items may include things such as clothing, personal accessories and certain electronics, although individual items may have their own limits or exclusions.
You may also be required to take certain steps after a loss, such as reporting theft to the appropriate authorities or obtaining documentation from the airline or transportation provider.
Travel Insurance Benefits You May Want to Prioritize
Travel insurance can offer more than the core benefits of emergency medical, cancellation, interruption, and baggage protection.
Depending on where you are travelling and what you plan to do, additional benefits may be particularly valuable.
Emergency Evacuation and Transportation
If you are travelling somewhere remote or where appropriate medical treatment is not available, emergency transportation or evacuation benefits can be extremely important.
Depending on your policy and the circumstances of the emergency, coverage may include transportation to an appropriate medical facility or other eligible emergency transportation.
Repatriation Benefits
Some travel insurance policies include repatriation benefits, which can help with the eligible costs associated with returning a traveller (and possible dependants) to their province or territory of residence following a covered medical emergency or, in applicable circumstances, returning remains to Canada.
These benefits can be particularly important when travelling internationally because transportation costs can be significant.
Flight Delay Services
Some travel insurance products also include flight delay services at no additional cost.
For example, at TIO our trusted partner products Blue Cross and TuGo include flight delay services. Blue Cross Flight Delay Service and TuGo MyFlyt™, can provide specific benefits when a registered flight reaches the applicable delay threshold.
These services are different from Trip Cancellation or Trip Interruption Insurance and serve the purpose of making dealing with flight delays a little more comfortable.
Coverage for High-Risk Sports & Activities
If your trip includes high-risk sports & activities, you may need additional coverage on top of your standard emergency medical coverage. Once you know which activities you will be participating in, check whether your travel insurance plan covers them or whether you need to purchase an optional benefit or additional coverage.
Some activities may be excluded from your standard coverage, while others may require specific High-Risk Sports & Activities coverage to be eligible.
Never assume that because an activity is permitted at your destination, it is automatically covered by your travel insurance. Always check your policy before participating to make sure you understand any eligibility requirements, limitations or exclusions.
Depending on the policy, activities that may require additional High-Risk Sports & Activities coverage can include:
BASE jumping
Downhill mountain biking
Extreme motorized sports
Mountaineering
Ice climbing
Organized team sports
Parachuting or skydiving
Scuba diving or free diving beyond 40 metres
Whitewater sports – Class VI
What Travel Insurance May Not Cover
Understanding what your policy doesn't cover is just as important as knowing what it does.
Every travel insurance policy has exclusions, limitations and conditions that determine when benefits apply.
Depending on the policy, potential exclusions or limitations may include:
Pre-existing medical conditions that do not meet the applicable stability requirements
High-risk or excluded activities that are not covered by the policy
Certain claims involving or as a result of intoxication or substance abuse
Travelling against medical advice or contrary to a physician's recommendation
Participation in illegal activities
Known events or circumstances that existed before coverage was purchased or before the applicable coverage became effective
Expenses that are not considered medically necessary or are not otherwise eligible under the policy
Expenses that exceed the applicable coverage limits
This is not a complete list of exclusions. The exact exclusions and conditions depend on the policy you purchase.
When comparing travel insurance, don't just look at the coverage amount. Read the policy wording and ask questions about anything you don't understand.
How Much Travel Insurance Coverage Do You Need?
There is no single amount of travel insurance coverage that is right for every Canadian traveller.
The amount and types of coverage you need can depend on:
Your destination
The length of your trip
Your age
Your medical history
The cost of your trip
Your planned activities
The level of medical coverage you want
Whether you have pre-existing medical conditions
Whether you want Trip Cancellation and Trip Interruption coverage
Whether additional benefits are important for your particular trip
For example, someone travelling to a remote destination may place greater importance on emergency transportation and evacuation benefits, while someone taking an expensive international vacation may want to pay particular attention to Trip Cancellation and Trip Interruption coverage.
The goal is not simply to find the cheapest travel insurance. It is to find the right coverage for your trip.
When Should You Buy Travel Insurance?
The right time to purchase travel insurance depends on the type of coverage you need.
For emergency medical insurance, you generally need coverage in place before your trip begins.
For Trip Cancellation/Interruption Insurance, purchasing coverage soon after making your initial trip payment can be important because certain benefits may have purchase-time requirements. It can also help ensure that you are protected against unforeseen circumstances that occur after your coverage is purchased. Once a circumstance or event becomes known, it is no longer be considered unforeseen and may not be covered.
Some policies may also offer additional benefits or have eligibility requirements based on when coverage is purchased. For example, in some cases, if you purchase a policy before your birthday, you may remain in a lower age bracket and, as a result, pay a lower daily rate.
The timing of your purchase can matter, so it is important to understand any purchase-time requirements that apply to your specific travel insurance policy. If you are unsure when you should purchase travel insurance, speak with a licensed travel insurance professional before your trip.
Is Travel Insurance Worth It?
For many Canadian travellers, travel insurance can be an important part of preparing for a trip, particularly when travelling outside Canada.
A medical emergency abroad can result in significant expenses, and the Government of Canada recommends purchasing travel health insurance before travelling outside Canada.
Travel insurance can also provide protection for eligible trip cancellations, interruptions, baggage losses and other covered events.
Ultimately, whether a particular policy is right for you depends on your circumstances and the risks you want to protect against.
Here to Answer Your Travel Insurance Questions
Understanding travel insurance can feel complicated, especially when different policies offer different coverage, limits, exclusions and eligibility requirements.
At Travel Insurance Office Inc. (TIO), our licensed insurance professionals can help you understand your options and find a policy that fits your destination, travel dates, health, activities and travel plans.
Whether you're looking for travel medical insurance, Trip Cancellation and Trip Interruption Insurance, baggage coverage or additional travel insurance benefits, we're here to help Canadians travel with greater confidence.
Explore our travel insurance options or contact us to speak with our team.
FAQs About What Travel Insurance Covers
What Does Travel Insurance Cover?
Travel insurance coverage varies by policy, but at its most basic, it is designed to help protect you from unexpected events and circumstances that result in out-of-pocket expenses while planning for or taking your trip.
Those expenses can relate to emergency medical care, your trip investment (e.g. accommodations, flights and excursions), baggage or personal effects replacement if lost, stolen, or damaged, and other covered travel-related costs.
But travel insurance can be about more than simply helping to reimburse eligible expenses. Many policies also include benefits and services designed to help you access assistance when you need it most. Depending on the policy, this may include services such as 24/7 emergency assistance, emergency remote evacuation, medical transportation, repatriation, return of your vehicle, or other assistance when an unexpected situation occurs while travelling.
These benefits can be especially important when you are dealing with an emergency in an unfamiliar destination. Having insurance can help provide not only financial protection for covered expenses, but also access to assistance and support when you need it.
Always review the specific policy wording before you travel to understand what is covered, what benefits and services are included, and what exclusions, limitations or eligibility requirements may apply to you.
Is Travel Insurance Worth Purchasing?
For many travellers, travel insurance can provide valuable financial protection against unexpected medical expenses and other covered travel-related losses.
It can be especially important when travelling outside Canada, where medical treatment and transportation costs can be expensive, and where Canadian provincial/territorial health plans may provide limited to no coverage.
The value of travel insurance depends on your individual needs and the risk you are willing to undertake.Our advice, it is always better to be safe than sorry.
Does Travel Insurance Cover Pre-Existing Medical Conditions?
It can, depending on the policy.
Some travel insurance plans provide coverage for eligible pre-existing medical conditions when the condition meets the policy's applicable stability requirements.
Stability periods and definitions vary by insurer and plan, so it is important to answer medical questions accurately and review the policy wording before purchasing coverage.
Will Travel Insurance Reimburse a Cancelled Flight?
It depends on why the flight was cancelled and what coverage your policy provides.
Travel insurance does not automatically reimburse every cancelled flight. If a cancellation results from a covered loss or event under your policy, eligible benefits may apply.
You may also have rights or remedies through the airline or applicable passenger protection rules, depending on the circumstances.
Does Travel Insurance Cover Lost or Damaged Baggage?
Some travel insurance policies provide benefits for lost, stolen, or damaged baggage. However, coverage is subject to the policy's terms, conditions, exclusions, waiting periods, limits and documentation requirements.
Does Travel Insurance Cover Medical Evacuation?
Many travel medical insurance policies include emergency transportation or medical evacuation benefits, but the exact benefit and circumstances in which it applies vary by policy.
If you are travelling to a remote destination or participating in activities far from medical facilities, pay particular attention to the emergency transportation and remote evacuation benefits included in your policy.
How Much Travel Insurance Coverage Do I Need?
There is no one-size-fits-all amount of travel insurance coverage for Canadians.
Consider your destination, trip length, health, age, trip cost, planned activities, and the types of protection you want.
Your emergency medical coverage limit is also important because medical and hospital costs outside Canada can be significant.
What Is the Most Important Travel Insurance Coverage?
For Canadians travelling outside their province or territory, emergency medical coverage is one of the most important benefits to consider.
However, the right travel insurance policy depends on your individual trip. Trip Cancellation and Interruption, baggage protection, emergency evacuation, repatriation and other benefits may also be important depending on your circumstances.
The best policy is not necessarily the one with the lowest premium, it is the one that provides the protection you need for the trip you're taking.
Travelling Safely Starts with Understanding Your Coverage
Travel insurance is designed to help protect you when the unexpected happens, but understanding your coverage before you leave is just as important as purchasing it.
Take the time to consider your destination, health, activities, trip cost, and travel plans. Review your policy, understand the benefits and exclusions and know how to access your insurer's emergency assistance service if you need help while travelling.
Because when it comes to travel insurance, knowing what you're covered for and what to do before you leave Canada can make all the difference when the unexpected happens.
