Travel insurance: Which coverage should you choose?

Why purchase travel insurance?

Because you never know when a health problem, a cancelled flight, lost baggage or a family emergency could occur and lead to significant expenses.

Travel insurance isn’t mandatory, but it can be essential. It must be purchased before a problem occurs.

Good to know: The RAMQ covers very few expenses outside Quebec, even elsewhere in Canada, and in the United States.

Which travel insurance coverage should you choose?

Emergency medical insurance

Emergency medical insurance protects you while you’re travelling.

It covers:

• Hospitalization costs or medical consultations
• Care following an accident or health problem
• Telemedicine services, in some cases

Emergency medical insurance can be purchased online, by phone or in person, at any time before departure.

Depending on the insurer, costs may be covered directly or reimbursed upon presentation of receipts. Check for exclusions related to age, health, or pre-existing conditions. You can also add a deductible, which can lower your insurance premium.

Good to know: Minimum coverage of $1 million is generally recommended, especially for trips to the United States.

Trip cancellation insurance

Trip cancellation insurance protects the money you’ve invested before departure.

It covers non-refundable expenses incurred for:

• Transportation tickets
• Accommodations
• Excursions
• Car rentals
• Deposits paid

It can also cover certain expenses incurred during the trip when an unforeseeable situation, beyond your control and serious enough, prevents you from enjoying the services you booked.

Trip cancellation insurance must be purchased at the time of booking or shortly after.

Trip interruption insurance

Trip interruption insurance covers additional costs caused by an unforeseen situation beyond your control during your trip.

It covers:

• Meal and accommodation costs related to a cancelled or delayed flight
• A return home ticket in case of an emergency
• Unused excursions

Trip interruption insurance must be purchased before departure. Some insurers limit the amount of benefits, while others offer amounts to be determined. Be sure to ask about the details.

Good to know: Trip cancellation and interruption insurance are often sold together, which is generally the most complete and secure option.

Baggage insurance

Lost or stolen baggage insurance protects the belongings you’re travelling with, as well as purchases made during your trip.

Certain items, particularly electronic devices, may be subject to compensation limits. Take the time to review your policy.

Your home insurance may also cover certain belongings stolen while travelling. However, a deductible may apply, and a claim could be recorded on your home insurance file and affect your premium.

Baggage insurance is rarely sold on its own and must be purchased before your trip, in accordance with the terms of the chosen product.

Good to know: A theft report or a certificate issued by local authorities will generally be required to file a claim.

Rental car insurance

Insurance for physical damage to a rented vehicle covers damage resulting from:

• A collision
• Theft
• Fire
• An act of vandalism

Often less expensive than the coverage offered by the rental company, rental car insurance can be purchased right up until you take possession of the vehicle.

Good to know: Many policies don’t include liability coverage. However, this protection is essential. Coverage of $2 million is recommended as soon as you leave the country.

Travel insurance and credit cards

Some credit cards include travel coverage such as:

• Emergency medical care
• Trip cancellation
• Baggage
• Rental cars

Before relying on this coverage, check the eligibility requirements. In many cases, the trip must have been paid for entirely with the card.

Also pay attention to the coverage limits and the maximum length of trip covered.

Tip: Don’t hesitate to add extra coverage for certain situations.

Assistance services: An often underestimated feature

Most travel insurance policies include a travel assistance service available 24 hours a day. This service can make all the difference when a problem arises far from home.

Before choosing a policy, check:

• The languages offered or interpreter services available
• Help in case of lost or stolen important documents
• Arrangements for repatriation
• Support for a loved one in case of an emergency

How much does travel insurance cost?

The cost of travel insurance depends on several factors:

• The length of your trip
• Your age
• Your health
• The amount of your deductible
• The coverage you choose

How to save on your travel insurance

Here are a few tips to help you save:

• Choose an annual travel insurance plan, which pays off from your second trip of the same year.
• Opt for family insurance if you’re travelling with several family members—children are often insured free of charge.
• Check the coverage already offered by your group insurance or credit card.
• Choose a multi-risk package that combines several types of coverage.

Good to know: Even for a short trip or a simple shopping outing in the United States, a medical emergency can lead to significant expenses. It’s best to check your coverage before you leave.

Which coverage should you choose based on your type of trip?

Essential reminders before you travel

• The RAMQ covers very few expenses outside Quebec, even elsewhere in Canada and in the United States.
• Travel insurance must be purchased before a problem occurs.
• Government of Canada travel advisories can affect your coverage.
• Destinations affected by armed conflict or located in a war zone may also result in exclusions or coverage limitations.

Take the time to read your policy to fully understand the benefits, exclusions and coverage limits.

The best travel insurance is the one that takes into account your destination, your health and the risks associated with your trip. To travel with peace of mind and protect your financial security, combine the right insurance with good travel health preparation.