For Canadians, travel insurance can be easy to overlook. We’re accustomed to publicly funded health care, which can create a subconscious assumption that we’re protected across borders and overseas.
Unfortunately, that’s a dangerous frame of mind that could end up costing thousands.
Provincial and territorial health plans provide only limited coverage outside Canada.
Because of this, the Government of Canada strongly recommends purchasing private travel insurance for any kind of trip.
Whether you’re heading south for a weekend, spending a month in Europe or off to a work conference, here are five reasons to get travel insurance.
1. Provincial health plans aren’t a fail-safe
One of the biggest misconceptions among Canadian travellers is that their provincial health card will cover them if they become sick or injured in another country.
In reality, provincial and territorial plans generally provide only limited reimbursement for emergency medical care outside Canada.
These plans can only cover the cost that comparable care would amount to if performed in Canada.
Hospital and doctor fees vary greatly across countries and you would be responsible for the difference.
For example, Alberta’s health plan currently reimburses out-of-country inpatient hospital services at a maximum of $100 per day. Outpatient hospital visits are capped at $50 per day. Physician services are reimbursed according to Alberta rates.
That can leave a substantial gap between what your provincial plan pays and what you actually owe.
2. Medical emergencies = financial emergencies
Getting sick or injured while travelling is stressful enough. Having to worry about how you’re going to pay the bill can make an already difficult situation much worse.
Hospitals and clinics in other countries can be extremely expensive, and some may require payment or proof of insurance before providing treatment.
The Government of Canada is very clear: it will not pay your medical bills if you become ill or injured abroad.
The costs can extend well beyond a visit to a doctor. Hospital stays, surgery, diagnostic tests, medication and specialist care can quickly add up.
And you don’t have to be participating in an extreme adventure for something to go wrong. A fall, unexpected illness, food poisoning or car accident can happen to anyone.
3. Medical evacuation is very costly
One of the most important reasons to have travel insurance is something many travellers don’t think about until they need it: getting home.
If you become seriously ill or injured and the appropriate medical care isn’t available where you are, you may need to be transported to another facility or back to Canada.
That can involve an air ambulance, medical escort or other specialized transportation. These costs can be substantial, and provincial health plans may cover little or none of them. (Travel.gc.ca)
Travel insurance can provide coverage for medically necessary evacuation and can help coordinate the logistics of getting you to an appropriate medical facility or home.
This isn’t just theoretical. The Government of Canada’s travel insurance guidance gives the example of a Canadian family who had to raise $300,000 over three days for medical treatment and evacuation after a traveller’s insurance had lapsed.
4. Travel insurance covers more than medical emergencies
Travel insurance can also help protect the money you’ve already invested in your trip.
Depending on the policy, coverage may be available for things such as trip cancellation, trip interruption, lost baggage or document replacement.
Trip interruption insurance, for example, can reimburse the unused portion of a trip if an unforeseen event forces you to return home after your journey has begun.
That distinction is important: trip cancellation and trip interruption aren’t the same thing, and not every travel insurance policy includes both.
Before buying coverage, consider what you’ve actually paid for your trip. How much of that money would be difficult to recover if your plans suddenly changed?
5. Anyone can experience a travel crisis
Travel insurance isn’t just for older travellers or people with existing health concerns.
The Government of Canada specifically recommends that even young, healthy Canadians have travel insurance.
You don’t need to have a chronic condition to end up in a foreign hospital. Accidents happen. Illnesses appear unexpectedly. A seemingly minor problem can become more serious when you’re thousands of kilometres from home.
That said, travellers with pre-existing medical conditions need to pay particular attention to the policy’s definitions, exclusions and stability requirements.
A policy may have specific rules about conditions that existed before the trip, and simply having insurance doesn’t necessarily mean every medical situation will be covered.
Put on your seat belt
Travel insurance may feel like an unnecessary expense when everything is going according to plan and you have a smooth travel history.
Nothing is ever guaranteed, and it’s best to be prepared for the day the ball drops.
Before leaving Canada, review your:
Existing provincial health care coverage
Workplace benefits
Credit card coverage
These may provide some travel protection, but they may not cover everything you need.
Read each policy carefully. Pay particular attention to coverage limits, deductibles, pre-existing conditions, trip length, exclusions and medical evacuation.
A travel insurance policy won’t prevent something from going wrong on vacation. But it can help prevent a medical emergency from transforming into a financial disaster.
For more articles about topics like this, click here. And safe travels!
