4 tips for buying travel insurance

Imagine you’re on vacation in the Caribbean. The sun is warm, the water is a vibrant blue and the landscape is lush. You’re in a picture-perfect paradise. But suddenly, you begin to feel ill…

Nobody wants to pay for added expenses after splurging on a vacation. But a visit to a doctor or hospital abroad could land you with a massive bill.

Every year, Canadians vacationing without travel insurance make the headlines by running up exorbitant medical bills.

A quick jaunt across the border to shop or catch a ballgame carries the risk of crippling expenses. Yes, your provincial health insurance may reimburse you for a small portion of the cost. But it caps your coverage at the provincial fee limit for your treatment. And that’s if your treatment is covered at all.

Even travelling to another province can be costly. Here’s an example: You live in Vancouver, where the B.C. government charges $80 for an ambulance ride. While visiting Ontario, you break your leg in a car crash and go to the hospital by ambulance. Since you’re from out of province, you get an ambulance bill for $240. But your B.C. health insurance will only reimburse you for $80.

Even the federal government recommends getting travel insurance.

And yet, most of us don’t – at least, not all the time. Before COVID-19, travel insurance industry surveys consistently found that fewer than half of Canadian travellers always bought insurance. Since then, interest in travel insurance has increased. Now, according to Insurance Business magazine, the majority of Canadians plan to buy insurance before travelling. But still, not everyone does, and not all the time.

So, why don’t we all insure ourselves whenever we travel?

It may be partly because the terminology can be pretty murky. Between what is and isn’t covered, and when, insurance terms can seem pretty complicated.

But a good insurance provider will clarify what the jargon means, and make getting travel insurance a smooth process.

4 golden rules: How to choose the right travel insurance provider

Will McAleer is the former president and current Innovation Lab chair of Canada’s Travel Health Insurance Association.

To ensure you’re getting proper coverage from your travel insurance provider, he says, follow four “golden rules”:

1. Know your health

Some policies include coverage for lost luggage and trip cancellation for various reasons, and that’s very useful. But at its heart, travel insurance is health insurance.

Before you apply for travel insurance, make a note of any conditions you have and medications you take. The provider will also want to know whether there’s been a change in your medication.

By being open about your health, you can make sure the policy covers your particular situation.

2. Know your policy

Ask the travel insurance company or your advisor all the questions you can think of before purchasing your policy.

Read the fine print, and ask questions like:

• • • Which services or medical devices does the policy cover?
    • Is there a deductible?
    • Are there any restrictions on where I can travel?
    • What if I have a pre-existing condition?
    • Are there any age limits?
    • How long a trip will my policy cover?
    • How soon will my insurer pay my claim?

3. Know your trip

Think about what you’re hoping to do on your trip.

Planning any high-risk activities such as bungee jumping, scuba-diving or extreme snowboarding? Make sure your travel insurance policy covers them.

“Policies differ in terms of the activities they will cover,” says McAleer. “So don’t just assume you’re covered.”

4. Know your rights

Check out the Travel Health Insurance Association’s bill of rights and responsibilities for consumers.

This is a great resource that lets you know what you have a right to, such as:

• • • 24/7 access to toll-free support
    • Free, minimum 10-day policy review of your policy
    • Prompt and fair claims handling.

What should you look for in a travel insurance provider?

Regardless of the specifics of your policy, always look for:

• • • A smooth application process, smooth claims payment
    • The ability to file complaints or flag problems easily and simply
    • Simple and clear documents with all limitations and exclusions fully disclosed

In 2022, Canadian insurers paid about $680 million in travel insurance claims. That’s according to a report from the Canadian Life and Health Insurers Association.

But sometimes, errors happen and disputes arise, even with the best companies. That said, if you have a problem – a good travel insurance provider will address it. When you’re considering a provider, be sure the website clearly lists an appeals or complaints contact.

And take good care of the paperwork. “You need to treat your insurance documents the same way you treat your passport,” says McAleer.

Make copies of your insurance documents and store them safely. That way, you can still access them if you lose or misplace the originals.

Whether you’re travelling out of province or out of Canada, be sure to pack travel insurance. If you plan ahead to protect yourself, you’ll be more likely to have a vacation to remember. In a good way!