The demand for travel insurance has noticeably risen, largely because of the impact of the Covid-19 pandemic. Numerous Canadian travelers have faced the chaos and financial hardships induced by the pandemic, thereby realizing the vital role of travel insurance.
According to the Canadian Life & Health Insurance Association, the Canadian travel insurance industry paid out $950 million in claims in 2020 due to trip cancellations caused by the pandemic. Insured travelers were reimbursed for their lost flights, cancelled hotel rooms, and missed reservations, while those without travel insurance lost thousands of dollars.
To help travelers choose the best insurance plan for their needs, this guide compares the top travel insurance plans for 2023. The comparison includes coverage options, costs, and post-Covid-19 protection. By comparing these plans, travelers can make informed decisions and enjoy their trips with peace of mind.
What is Travel Insurance?
Travel insurance is a type of insurance policy that safeguards your investment in a trip. It provides coverage for financial losses incurred due to a cancelled or interrupted trip, emergency medical care during travel, emergency evacuation, damage to a rental car, lost luggage, and more. Medical care coverage is particularly important in Canada, where out-of-province care is more expensive and offers less coverage than in the patient’s home province.
Travel insurance can be purchased as an individual policy or added on to a travel purchase, such as a flight. Some credit cards also offer travel insurance as a benefit when used to make a travel purchase.
What Does Travel Insurance Cover?
The coverage provided by travel insurance varies depending on the insurer and the level of coverage selected. However, most travel insurance policies typically cover the following:
- Emergency medical care: This covers the cost of medical treatment in case of an accident or illness during the trip.
- Trip cancellation: This covers the cost of the trip if it is cancelled due to unforeseen circumstances such as illness, injury, or death.
- Trip interruption: This covers the cost of the trip if it is interrupted due to unforeseen circumstances such as illness, injury, or death.
- Lost or damaged baggage: This covers the cost of replacing or repairing lost or damaged baggage.
When selecting a travel insurance plan, it is important to consider the specific needs of the trip. For example, a basic plan covering just flight cancellation may suffice if the traveler already has supplemental individual medical coverage and is traveling within Canada. However, a comprehensive plan with emergency medical care and evacuation coverage may be necessary for a ski trip to the French Alps.
Manulife’s CoverMe is one of the most popular travel insurance providers in Canada. Their Single Trip All-inclusive plan offers comprehensive coverage, similar to other comprehensive travel insurance plans. When selecting coverage, it is important to evaluate the level of risk, the availability of healthcare in the destination, and the affordability of a cancelled trip.
What Are the Different Types of Travel Insurance?
Travel insurance is a must-have for any traveler. It protects you from unexpected events that can ruin your trip. There are several types of travel insurance available, each with its own unique benefits. Here are the most common ones:
- Baggage insurance – This type of insurance covers you if your luggage is lost or delayed. It provides you with some spending money to purchase essentials or replaces your lost items.
- Emergency medical insurance – This essential type of travel insurance covers you in case you get injured or sick while away. It ensures that you receive the medical attention you need without worrying about the cost.
- Trip cancellation – If you need to cancel your trip due to an emergency back home, this coverage will reimburse you for the nonrefundable travel expenses.
- Trip interruption – If you miss a connection flight or need to return home early, this insurance will cover you during your trip.
- All-inclusive policies – These policies include all of the above insurance types. They provide comprehensive coverage, making them ideal for those who want to be prepared for anything.
When purchasing travel insurance, consider how much you will be traveling in the year. Single-trip and annual coverage options exist. Annual plans may save you money if you intend to travel two or more times per year.
How much does travel insurance cost?
The cost of travel insurance varies depending on several factors such as age, destination, length of trip, and desired coverage. For instance, a 30-year-old single traveler could pay as little as $26 for a week with a basic plan, while a comprehensive plan could cost up to $125. It is advisable to opt for plans that include emergency medical coverage. To find the best policy for you, it is recommended to use a comparison tool to get personalized travel insurance quotes.
When to Consider Buying Travel Insurance
It is recommended to purchase travel insurance at the same time you book your trip to ensure greater protection. Waiting until later may put your investment at risk if something happens between booking and purchasing insurance. Keep in mind that once a problem arises, it is too late to buy insurance. Therefore, it is best to buy travel insurance as soon as possible to avoid losing your investment.
How Credit Card Travel Insurance Works
Credit card travel insurance is a benefit that comes with many credit cards. Before purchasing a separate policy, it is worth checking what your card includes, as you may already have sufficient coverage. However, keep in mind that you are typically only covered for expenses purchased on that credit card. If you buy your plane tickets on one card and your hotel on another, the first company will not reimburse you for a hotel issue. Additionally, terms and exclusions may be more restrictive than a standalone policy. The best travel credit cards offer comprehensive coverage, including trip cancellation, trip interruption, emergency medical coverage, and more.
Does Travel Insurance Cover COVID-19?
Many travel insurance plans now offer coverage for Covid-19-related expenses, including cancellation and medical expenses. Some plans even offer stand-alone Covid-19 travel insurance. However, it is important to carefully verify the details of the policy before purchasing, as coverage may be explicitly excluded if the destination country or region is under an “avoid non-essential travel” or “avoid all travel” advisory at the time of purchase. Additionally, Covid-19 vaccination status may affect coverage, as insurers may declare claims ineligible for those who are unvaccinated by choice.
It is also important to note that specific Covid-19 plans may only cover Covid-19-related expenses and not automatically include coverage for other medical needs. As Covid-19 coverage and news change frequently, it is recommended to check with service providers for the latest information.
Below is a summary of what travel insurance may cover for Covid-19-related expenses:
- Reimbursement for costs incurred from mandatory quarantine
- Coverage for Covid-19-related medical expenses
- Trip interruption and cancellation coverage
Overall, it is advisable to carefully review the policy details and consult with service providers to ensure adequate coverage for Covid-19-related expenses.
Do I need private health care coverage when travelling outside Canada?
Watch out!
When travelling abroad, it is always recommended to have travel medical insurance. Healthcare prices and standards can vary significantly, and some public provincial plans may offer insufficient coverage. Even if your provincial plan covers some expenses, it may only pay what the cost would be back at home, not the actual price at your destination. In some cases, you may have to pay out-of-pocket and request reimbursement later.
In countries like the United States, treatment can be exceedingly expensive, with an average overnight stay in a hospital costing around $14,000 CAD. Private health care coverage can help cover these costs and prevent financial strain.
Moreover, in some countries, healthcare facilities may request payment upfront and refuse treatment if you are unable to pay. This makes emergency medical insurance extremely valuable, as it can ensure that you receive the necessary treatment in case of an emergency.
Do I Need Travel Insurance Within Canada?
While the Canada Health Act guarantees basic emergency care to Canadian citizens and residents, it does not cover prescription drugs and ambulance services. Therefore, it is recommended to have medical travel insurance while travelling within Canada.
It is important to note that OHIP coverage from Ontario will not cover private hospital, laboratory, or paramedic services while visiting British Columbia. In addition, payment for medical services may be required upfront, leaving the traveller responsible for seeking reimbursement from their home province upon their return.
Canadian residents travelling within Canada may qualify for a discount on their medical travel insurance. One popular insurer offers a 50% discount compared to their abroad plans.
Travellers who do not have adequate travel insurance while travelling outside of their province or territory assume the risk of paying out-of-pocket for medical expenses. It is recommended to compare the best travel insurance medical plans anonymously to protect oneself while travelling in Canada.
It is important to check if one already has sufficient coverage through a supplemental individual or group private health insurance policy.
What is the Best Travel Insurance for Visitors to Canada?
When it comes to choosing the best travel insurance plan for visitors to Canada, it is important to consider the individual needs of the traveller. Many leading Canadian insurance companies offer medical travel insurance plans that can be tailored to meet the unique requirements of non-residents in the country for vacation, business, or visiting family.
It is also worth noting that some visitors may already have insurance plans available to them from their home country.
Good to Know
If you are sponsoring a parent or grandparent to visit Canada, it is mandatory to purchase super visa insurance. This insurance is designed to provide medical coverage for a minimum of one year and can be renewed for up to 10 years. It is important to compare different super visa insurance plans to find the best one that suits your needs. Check out our super visa guide for more information and comparisons.
What are the top travel insurance companies?
The best travel insurance company for an individual depends on their specific needs and travel plans. In Canada, popular private health insurance companies that offer travel insurance include 21st Century, Allianz, AMA, BCAA, BMO, CARP, CIBC, Desjardins, GMS, Goose, Johnson (Medoc), Manulife CoverMe, Medipac, RBC, Scotiabank, TD, and World Nomads. It is important to compare coverage and prices to find the best fit for each individual’s travel needs.
What Travel Insurance for Seniors Covers
Travel insurance for seniors provides increased medical coverage and coverage for pre-existing conditions. Leading plans offer emergency medical insurance adapted to the needs of senior travellers. Coverage includes:
- Increased medical coverage compared to other plans
- Coverage for stable pre-existing conditions
Note that coverage may vary depending on the specific plan and provider.
What Does Travel Insurance for Snowbirds Cover?
Good to Know
Snowbirds, who are often retirees travelling to warmer climates during the Canadian winter, need to ensure they have appropriate travel medical insurance. Such insurance policies commonly cover medical treatments, prescription medications, paramedics and ambulance rides, repatriation to Canada, and emergency dental care. However, elective treatments are not usually covered by snowbird insurance policies and should wait until the traveller returns to Canada.
It is important to note that snowbirds may be more at risk for a medical emergency while away due to the length of their trips and underlying health conditions. Additionally, many snowbirds travel to warm parts of the United States, which has the world’s highest medical care costs. Therefore, having adequate travel insurance is crucial to avoid potential financial burdens and ensure access to necessary medical care.
How to Purchase Travel Insurance Online
The simplest way to buy travel insurance is by using an online comparison tool. This tool allows you to compare rates and coverage options quickly without revealing personal data. Alternatively, you may purchase travel insurance through a travel agent, an insurance broker, your private individual or group health insurer, or a travel credit card.
Does Travel Insurance Cover Cruises?
Travel insurance plans frequently offer coverage for cruises. When looking for a plan, it is important to ensure that it includes coverage for cruise travel insurance. For instance, RBC offers two popular packages, namely Deluxe and TravelCare (for seniors), which cover a range of scenarios:
- Cruise cancellation or interruption due to mechanical failure or weather
- Catch-up costs for a missed departure due to a cancelled flight
- Unused shore excursion tickets (due to illness or injury)
- Last-minute cancellations due to a covered reason
- Lost luggage, passports, and medications
- Eligible emergency medical expenses
- 24-hour worldwide emergency medical and travel assistance
- Repatriation costs
It is crucial to review the policy details to confirm the extent of coverage and any limitations or exclusions.
See Our Guides on Travel Insurance in Canada:
HelloSafe provides comprehensive guides on travel insurance in Canada. These guides aim to help travelers understand the importance of having travel insurance and the different types of coverage available to them. The guides also provide information on how to choose the right travel insurance plan based on their needs and budget.
The guides cover a wide range of topics related to travel insurance, including:
- The benefits of having travel insurance
- Types of travel insurance coverage
- Choosing the right travel insurance plan
- Travel insurance for seniors
- Travel insurance for students
- Travel insurance for families
- Travel insurance for adventure sports
- Travel insurance for pre-existing medical conditions
HelloSafe’s travel insurance guides are written by experts in the field who have years of experience in the insurance industry. They provide clear and concise information that is easy to understand, making it easier for travelers to make informed decisions about their travel insurance needs.
In addition to the guides, HelloSafe also offers a comparison tool that allows travelers to compare travel insurance plans from multiple providers. This tool helps travelers find the best travel insurance plan that meets their specific needs and budget.
Overall, HelloSafe’s guides and tools provide travelers with the information they need to make informed decisions about their travel insurance needs.
Frequently Asked Questions
Who is the best travel insurance provider in Canada?
There is no one-size-fits-all answer to this question, as the best travel insurance provider in Canada will depend on your specific needs and circumstances. However, some of the top travel insurance providers in Canada include Manulife, Allianz Global Assistance, and Travel Guard.
What are the best options for travel health insurance in Canada?
When it comes to travel health insurance in Canada, some of the best options include Blue Cross, Manulife, and RSA Travel Insurance. These providers offer comprehensive coverage for medical emergencies, including hospitalization, medical evacuation, and repatriation.
What factors should I consider when choosing a travel insurance company?
When choosing a travel insurance company, it is important to consider factors such as coverage options, price, customer service, and reputation. You should also consider the specific needs of your trip, such as the duration, destination, and activities you will be participating in.
Are there any travel insurance companies that specialize in coverage for trips to the United States?
Yes, there are several travel insurance companies that specialize in coverage for trips to the United States. These include Allianz Global Assistance, Blue Cross, and RSA Travel Insurance.
Which travel insurance companies offer the most comprehensive coverage?
Some of the travel insurance companies that offer the most comprehensive coverage include Manulife, Allianz Global Assistance, and Travel Guard. These providers offer a range of coverage options, including emergency medical coverage, trip cancellation and interruption coverage, and baggage loss and delay coverage.
What are the differences between travel insurance plans offered by different companies?
The differences between travel insurance plans offered by different companies can vary widely. Some of the key differences to look for include coverage options, price, deductibles, and exclusions. It is important to carefully review the terms and conditions of each policy to ensure that you are getting the coverage you need at a price you can afford.
