About Travel Insurance in Canada
Travel insurance covers you against sudden expenses and problems when you travel out of Canada.
Whether you’re going to Europe and staying there a while or backpacking across Asia and staying there for months, travel insurance reimburses medical expenses in case of travel-related medical emergencies, trip cancellations, lost luggage, and other travel-related issues that could possibly cost you thousands of dollars out of pocket.
The Canadian travel insurance market is expanding rapidly. The Canadian travel insurance market was valued at USD 542.9 million in 2023 and is predicted to reach USD 1101.2 million by 2030, with a CAGR of 9.5% from 2024 to 2030. This growth shows that more Canadians understand the importance of protecting their trips and health while travelling.
In spite of this increase, a number of Canadians continue to travel uninsured. In a study conducted by Pacific Blue Cross in 2024, the researcher established that 87% of Canadians understand the danger of travelling without insurance, but only 57 % of them purchase it at least once.
This disparity between knowledge and behaviour can put travellers at serious financial risk, especially given that medical emergencies in foreign countries can cost travellers tens of thousands of dollars.
What is travel insurance?
Travel insurance is an insurance cover that provides you with coverage against financial losses while you’re travelling.
It covers unexpected events like medical emergencies, trip cancellations, lost bags, or travel delays. When you purchase travel insurance, you pay a small premium upfront to avoid losing large amounts of money unexpectedly as you travel in the future.
Your provincial health insurance doesn’t cover you fully when you travel outside Canada. While some provinces provide limited emergency coverage abroad, it’s usually much less than what you’d actually pay for medical care in other countries.
For example, a simple emergency room visit in the United States can cost $3,000 or more, while a medical evacuation back to Canada can cost over $100,000.
This gap is filled by travel insurance, which covers all medical-related costs and emergency evacuation, coupled with other travel-related issues. It makes you worry-free because you are not going to be ruined financially in case something wrong happens to you in the process of your trip.
World Nomads
- Emergency medical coverage abroad
- Trip cancellation, interruption, and delay
- Coverage for 150+ adventure activities
- Lost, stolen, or delayed baggage
- 24/7 emergency assistance
- Buy or extend policies while traveling
- Emergency medical coverage abroad
- Trip cancellation, interruption, and delay
- Coverage for 150+ adventure activities
- Lost, stolen, or delayed baggage
- 24/7 emergency assistance
- Buy or extend policies while traveling
- Emergency medical & evacuation coverage worldwide
- Optional trip cancellation and interruption protection
- Baggage loss and delay reimbursement
- Search & rescue coverage
- Skiing and winter sports coverage
- Policy can be purchased or extended mid-trip
- Emergency medical & evacuation coverage worldwide
- Optional trip cancellation and interruption protection
- Baggage loss and delay reimbursement
- Search & rescue coverage
- Skiing and winter sports coverage
- Policy can be purchased or extended mid-trip
Tugo
- Comprehensive emergency medical coverage
- 24/7 in‑house global assistance in 27 languages
- Trip cancellation & interruption insurance
- Baggage protection & cancel for any reason add-on
- Rental car damage & loss protection
- Optional sports & activities coverage
- Comprehensive emergency medical coverage
- 24/7 in‑house global assistance in 27 languages
- Trip cancellation & interruption insurance
- Baggage protection & cancel for any reason add-on
- Rental car damage & loss protection
- Optional sports & activities coverage
InsureMyTrip
- Access to multiple insurance providers and plans in one platform
- Online comparison tool for easy policy and price comparison
- Coverage options including trip cancellation, medical, evacuation, and baggage
- Specialized plans for youth, seniors, and frequent travelers
- Optional add-ons like Cancel for Any Reason (CFAR) coverage
- 24/7 emergency assistance and claims support
- Access to multiple insurance providers and plans in one platform
- Online comparison tool for easy policy and price comparison
- Coverage options including trip cancellation, medical, evacuation, and baggage
- Specialized plans for youth, seniors, and frequent travelers
- Optional add-ons like Cancel for Any Reason (CFAR) coverage
- 24/7 emergency assistance and claims support
How to compare travel insurance
Comparing travel insurance policies helps you find the best coverage for your needs and budget. Here’s what to look for when shopping for the best travel insurance:
- Coverage limits: Check how much the policy pays for medical expenses, evacuation, and other benefits. Higher limits cost more but provide better protection.
- Deductibles: Some policies require you to pay a deductible before coverage kicks in. Lower deductibles mean you pay less out of pocket when making a claim.
- Pre-existing conditions: If you have health issues, make sure the policy covers pre-existing medical conditions. Some insurers require medical questionnaires or waiting periods.
- Activities covered: Sports and other activities with high risk might not be covered or require extra cover. Make sure that the activities you planned are insured.
- Trip duration limits: Single-trip policies have maximum trip length limits, usually 180 days. Multi-trip policies may limit individual trip lengths to 30-60 days.
- Age restrictions: Some policies have age limits or higher premiums for older travellers. Senior-specific policies may offer better coverage for mature travellers.
- Claims process: Look for insurers with 24/7 claim support and direct billing to hospitals. This makes it easier to get help when you need it most.
Who needs travel insurance?
Almost everyone who travels outside Canada should consider travel insurance. Here are the main groups that especially need coverage:
- Travellers with health conditions: If you have diabetes, heart problems, or other medical conditions, travel insurance is essential. Medical emergencies abroad are more likely and more expensive for people with existing health issues.
- Families with children: Kids get sick and injured more often than adults. Family travel insurance protects against costly medical bills and trip disruptions when travelling with children.
- Senior travellers: Older adults face higher medical risks and often take expensive trips. Travel insurance for seniors typically includes enhanced medical coverage and trip cancellation benefits.
- Business travellers: Frequent business trips increase your exposure to travel risks. Annual multi-trip policies provide cost-effective coverage for regular travellers.
- Adventure seekers: If you plan to ski, dive, or participate in other adventure activities, you need coverage that includes these higher-risk pursuits.
- Travellers to expensive destinations: Medical care is too costly in some countries such as the United States, Japan and Switzerland. In these places, travel insurance is particularly necessary.
- People taking expensive trips: The more you spend on your trip, the more you have to lose if something goes wrong. Comprehensive travel insurance protects your investment in costly vacations.
When to get travel insurance
Buy travel insurance as soon as you book your trip. Early purchase gives you maximum protection and access to all benefits. Many policies include time-sensitive benefits that only apply if you buy coverage within a certain period after booking.
The best time to purchase travel insurance is within 14 to 21 days of your initial trip booking. This timing window unlocks several important benefits that may not be available later.
Pre-existing medical condition waivers often require purchase within this timeframe, allowing coverage for health issues that existed before buying the policy.
You can still buy travel insurance closer to your departure date, but you will miss out on some benefits. Trip cancellation coverage for pre-existing conditions, cancel for any reason upgrades, and other time-sensitive benefits may not be available if you wait too long to purchase coverage.
What does travel insurance cover
Travel insurance policies typically include several types of coverage to protect different aspects of your trip. Here’s what most comprehensive travel insurance policies cover:
Emergency medical expenses
This includes your doctor visit, hospitalization, use of prescription medicines and other forms of medical care that you require during your travel.
The coverage limits are usually between 100,000 dollars and 5 million dollars and above. The most significant aspect in any travel insurance policy is medical cover because healthcare expenses in a foreign country may be very high.
Emergency evacuation
If you’re seriously injured or ill and need to be transported to a better medical facility or back to Canada, emergency evacuation coverage pays for these costs. Medical evacuations can cost $100,000 or more, making this coverage essential for international travel.
Trip cancellation
This will refund your non-refundable travel expenses should you have to cancel before departure because of covered reasons such as illness, injury, family death, severe weather, etc.
The reimbursement paid by trip cancellation insurance usually covers 100 per cent of the non-recoverable prepaid trip expenses up to the policy limit.
Trip interruption
In case you would like to end your trip early because of covered reasons, trip interruption coverage will reimburse your unused trip costs and any other expenses required to have an earlier flight home.
This insurance takes over where trip cancellation insurance is of no use to you, because it covers your trip once it has already begun.
Lost or delayed baggage
Baggage coverage pays you on accounts of lost, stolen, and damaged luggage and personal items. It also entails the coverage of things that you require purchasing in case your luggage is delayed by some time, preferably 12-24 hours.
Travel delay
When flights are delayed or cancelled due to weather, mechanical problems, or other covered reasons, travel delay coverage reimburses additional expenses like meals, accommodation, and transportation. Coverage typically applies to delays of 6-12 hours or more.
Accidental death & dismemberment
This provides a lump sum payment to beneficiaries if you die in an accident while travelling, or to you if you lose a limb or sight due to an accident. This insurance covers your family and brings in devastating economic security in case of your death, but to think about it is morbid.
COVID-19 coverage
The majority of travel insurance policies have recently extended the coverage of the medical care costs of COVID-19, the costs of cancelling a trip, and paying quarantine fees. This protection is now necessary since mishaps in travelling attributable to the pandemic continue to occur.
Rental car damage
Some policies include coverage for rental car damage, eliminating the need to buy a collision damage waiver from rental car companies. This can save money and provide better coverage than rental company insurance.
2 types of travel insurance
| Feature | Single-trip insurance | Multi-trip insurance |
|---|---|---|
| Best for | Occasional travellers taking one trip | Frequent travellers taking multiple trips per year |
| Coverage period | Covers one specific trip only | Covers unlimited trips for one year |
| Trip length limits | Usually up to 180 days per trip | Individual trips are limited to 30-60 days |
| Cost | Lower upfront cost for single trips | Higher upfront cost, but saves money for multiple trips |
| Flexibility | Coverage tailored to a specific trip | One policy covers all trips during the year |
| Medical limits | Can choose higher limits for longer trips | Standardized limits for all trips |
| When to buy | Purchase for each individual trip | Purchase once per year |
Single trip insurance
Single-trip insurance covers one specific trip from departure to return. This type works best for people who travel occasionally or take one major trip per year.
You can customize coverage limits and benefits for your specific destination and trip length. Single-trip policies often allow higher medical coverage limits and longer trip durations than multi-trip policies.
Multi-trip insurance
Multi-trip insurance covers unlimited trips during a one-year period. This type makes sense for people who travel frequently for business or pleasure.
While individual trip lengths are limited (usually 30-60 days), you’re automatically covered for every trip without buying separate policies. Multi-trip insurance becomes cost-effective if you take three or more trips per year.
Is travel insurance mandatory?
Travel insurance is not legally required for Canadian citizens who are travelling abroad, but some situations make it practically mandatory.
Visa requirements for certain countries may require proof of travel insurance with specific coverage amounts. As an example, in Europe, the Schengen countries demand that visitors possess medical insurance that covers 30,000 Euros or more.
Some tour companies and cruises do not allow their passengers to travel without insurance coverage.
These companies would like to ensure that travellers can solve medical emergencies and disruption of trips without causing inconveniences to the rest of the passengers and the company.
Travel insurance is greatly recommended by the Government of Canada, even when it is not necessary for all international travel. Provincial health insurance provides limited coverage abroad, leaving you exposed to potentially devastating medical bills and other travel-related costs.
How much does travel insurance cost
Travel insurance is about 4% to 8% of your overall travel expenditure. A $5,000 journey would cost you between $200 and $400, depending on complete coverage.
The price is influenced by several factors like your age, where you are going, how long you will be away, coverage limits, and your health condition.
The least is paid by young, healthy travellers who undertake short trips to safe destinations. An individual on a one-week visit to Western Europe may spend 50-100 dollars to get a simple life insurance policy at age 25.
The insurances of older travellers, of longer trips and destinations where healthcare is costly (such as the United States) are also more expensive.
Young, healthy travellers going on short trips to safe destinations pay the least. A 25-year-old taking a one-week trip to Western Europe might pay $50-100 for basic coverage.
Older travellers, longer trips, and destinations with expensive healthcare (like the United States) cost more to insure.
Cheap travel insurance is available, but be careful about low-cost policies. They often have low coverage limits, many exclusions, and poor customer service. Spending a bit more for quality coverage from reputable travel insurance companies can save you thousands if you need to make a claim.
How to get travel insurance
Getting travel insurance is straightforward and can be done online in minutes. Here’s the step-by-step process:
- Compare travel insurance quotes online: Use comparison websites or visit insurer websites directly to get quotes. Provide your trip details, age, and coverage preferences to see available options and prices.
- Review coverage details carefully: Read policy documents to understand what’s covered and what’s excluded. Pay attention to medical coverage limits, pre-existing condition clauses, and activity restrictions.
- Complete the application: Provide accurate information about your health, trip details, and any pre-existing medical conditions. Lying on the application can void your coverage when you need it most.
- Pay the premium: Most insurers accept credit cards and offer secure online payment. You’ll receive your policy documents by email immediately after payment.
- Save policy information: Keep digital and physical copies of your policy documents, emergency contact numbers, and claim procedures. Store this information separately from your other travel documents.
- Register with your insurer: Some companies offer online registration or mobile apps that make it easier to access your policy information and file claims while travelling.
What affects travel insurance cost?
Several factors determine how much you’ll pay for travel insurance coverage:
- Age: Senior travellers are charged a lot more for their travel insurance since they are at a greater medical risk. After the age of 65, the premiums can rise astronomically; some insurers, after this point, charge 2-3 times as much to a senior as someone younger travelling.
- Destination: Countries with expensive healthcare systems cost more to insure. The United States has the highest travel insurance premiums due to extreme medical costs. Developing countries with limited medical facilities may also incur higher costs due to evacuation risks.
- Trip Length: Longer trips increase exposure to risks and cost more to insure. Most policies charge based on trip duration, with rates increasing significantly for trips over 30 days.
- Coverage Amounts: Higher medical coverage limits and trip cancellation benefits increase premiums. Choosing $1 million medical coverage instead of $100,000 can double or triple your premium cost.
- Pre-existing Conditions: Travellers with health conditions pay more or may be excluded from coverage entirely. Some insurers offer coverage for stable pre-existing conditions at higher rates.
- Activities Planned: Adventure sports and high-risk activities increase premiums or require additional coverage. Skiing, scuba diving, and mountain climbing often require special coverage riders.
What do you need to get travel insurance?
Getting travel insurance requires basic personal and trip information. Here’s what you’ll need to provide:
- Personal information: You will need to provide your name, date of birth, address, and contact details. Some insurers also ask for your health card number and emergency contact information.
- Trip details: Departure and return dates, destination countries, and purpose of travel (leisure, business, etc.). Be specific about all countries you plan to visit.
- Health information: Most applications ask about your current health status and any pre-existing medical conditions. Answer honestly to ensure your coverage is valid.
- Trip cost information: For trip cancellation coverage, you’ll need to provide the total cost of non-refundable trip expenses like flights, hotels, and tours.
- Payment method: A credit card or bank account for premium payment. Many insurers offer payment plans for expensive policies.
- Beneficiary information: For accidental death coverage, you’ll need to name beneficiaries who would receive benefits in case of your death while travelling.
What is the best travel insurance for Canadians?
Choosing the best travel insurance depends on your specific needs, but several companies consistently rank highly for Canadian travellers:
| Company | Average price | Time to get insured | Insurance types | Other features |
|---|---|---|---|---|
| World Nomads | $150-300/trip | Instant online | Single & multi-trip | Adventure sports coverage, 24/7 support |
| Allianz Global | $100-250/trip | Instant online | Single & multi-trip | Strong reputation, direct billing |
| TuGo | $80-200/trip | Same day | Single & multi-trip | Canadian company, good senior coverage |
| InsureMyTrip | $120-280/trip | Instant online | Comparison platform | Compare multiple insurers, cancel for any reason |
World Nomads
World Nomads specializes in coverage for adventure travellers and long-term trips. They cover many high-risk activities that other insurers exclude and offer flexible policies that can be extended while travelling. Their 24/7 emergency assistance is highly rated by customers.
Allianz Global
Allianz Travel Insurance is a global leader of the Canadian travel insurance and assistance market that offers travel insurance, corporate assistance and concierge services. They provide excellent coverage, and their customer service is also commendable. They have direct billing agreements with most hospitals in the world.
TuGo
TuGo is a Canadian company that understands the specific needs of Canadian travellers. They offer competitive rates and good coverage for seniors, making them popular with older travellers. Their policies include good medical coverage and trip protection benefits.
InsureMyTrip
InsureMyTrip is a comparison platform that lets you compare policies from multiple insurers. They offer access to dozens of travel insurance companies and provide tools to help you find the best coverage for your specific needs and budget.
Pros and cons of travel insurance
Understanding the advantages and disadvantages helps you make an informed decision about travel insurance coverage.
Pros of travel insurance
- Financial protection: It covers expensive medical bills, trip cancellations, and other costly travel problems that could ruin your finances.
- Peace of mind: Knowing you’re protected lets you enjoy your trip without worrying about what could go wrong.
- 24/7 emergency assistance: Most insurers provide round-the-clock support to help you handle emergencies while travelling.
- Medical evacuation coverage: Pays for expensive medical transport that can cost $100,000 or more without insurance.
- Trip protection: Reimburses non-refundable trip costs if you need to cancel or interrupt your travel plans.
- Baggage coverage: Compensates for lost, stolen, or damaged luggage and personal belongings.
- Wide range of covered situations: Modern policies cover everything from natural disasters to terrorism, pandemics, and personal emergencies.
Cons of travel insurance
- Additional travel cost: Premiums add to your overall trip expenses, though the cost is usually small compared to potential claims.
- Policy exclusions: Many situations aren’t covered, including pre-existing conditions, high-risk activities, and certain destinations.
- Claim paperwork: Filing claims requires documentation and can be time-consuming, especially while travelling.
- Coverage limits: Policies have maximum payout amounts that may not cover all expenses in serious situations.
- Pre-existing condition restrictions: Health issues that existed before buying the policy are often excluded from coverage.
- Deductibles: You may need to pay out-of-pocket costs before insurance coverage begins.
How to file a travel insurance claim
Filing a travel insurance claim requires prompt action and proper documentation. Here’s how to handle the claims process:
- Contact your insurer immediately: Call the 24/7 emergency number as soon as possible when an incident occurs. Many insurers require notification within 24-48 hours for medical claims.
- Keep all receipts and documentation: Save receipts for medical treatments, additional accommodation, meals, and other expenses related to your claim. Take photos of damaged luggage or belongings.
- Get medical reports: For medical claims, obtain copies of medical records, doctor’s reports, and treatment summaries. These documents are essential for claim processing.
- File police reports if necessary: For theft, lost items, or other criminal incidents, file a police report and get a copy for your claim file.
- Complete claim forms accurately: Provide detailed, accurate information on all claim forms. Incomplete or inaccurate information can delay or deny your claim.
- Submit claims promptly: Most insurers require claims to be filed within 30-90 days of the incident. Don’t wait until you return home to start the claims process.
- Follow up regularly: Stay in contact with your claims adjuster and provide any additional documentation requested promptly. Keep records of all communications with your insurer.
- Be patient but persistent: Claim processing can take several weeks or months, especially for complex cases. Follow up regularly, but understand that a thorough investigation takes time.
